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6 Companies In The Investment Vision

The IDG Ventures Vietnam of International Data Group has just announced to invest in 3 more Vietnamese companies. The Investment Newspaper’s reporter has interviewed with Mr., Rach D Reddy, and Vice Director of IDG Ventures Vietnam about investment plans in Vietnam.

Could you please tell us how the investment process is carried out?

IDG Ventures Vietnam normally carries out the investment process in 3 phases in Vietnamese companies ( 40% for first phase, 40% for mid phase and 20% for the developed and developing phase) however, we have made one-time investment in these 3 companies, IDG Ventures has so far invested in 14 companies in Vietnam.

Could you make a brief introduction about these companies selected by IDG Ventures?

Firstly, Yeuamnhac website of Yeu Am Nhac joint stock company established in 2003, it’s a specialized music forum currently associates with more than 500,000 members.
Secondly, Vinapay, a joint venture company set up in 2006, provides online payment service Mobifone, Vinaphone, Hanoi Telecom, EVN, S Fone, Viettel mobile network providers.
Thirdly, Cyworld, a social networking site, developed and operated by SK Communications that is a unit of Korea’s top mobile carrier SK Telecom.
They are all potential oriented-growth companies that meet requirements of IDG Ventures such as best awareness of customers’ favorites and market, products and services can earn profit along with the defined segment market, hold advantageous technology to gain firm foothold in the market, good management team that is well-experienced and strategic vision leaders, they are determined to build up company successfully and have clear financial policy, apply finance standards.

Besides, 3 mentioned above companies, which companies are targeted by IDG Ventures?

We are now considering so many investment portfolios, under plan, there will be 6 more companies in “the investment target” of IDG Ventures Vietnam.
How do you evaluate about the imbursement process of IDG Ventures?
We have currently imbursed US$20 million of total capital of US$100 million. With 6 next companies is targeting by IDG Ventures, there will be US$6-10 million to be imbursed.

Therefore the IDG Ventures’ speed of imbursement seems to get slow?

The speed of imbursement is totally suited to IDG Ventures’ estimated plan; we confirm that we reach speed on right track as initial plan since the start-up phase features market survey. IDG Ventures prepares to shift to second phase is that to speed up investment by then we hope the speed of imbursement will get faster.

What do you comment on the efficiency of invested capital that has been imbursed?

According to our initial evaluation, 11 invested companies have gained a certain amount of success and VinaGame and MSS have acquired the best efficient investment.

Up until now, IDG Ventures’ imbursement just reached 20% of which may be fairly low, According to you, what points of IDG Ventures attract Vietnamese companies?

IDG Ventures has invested about US$50,000-US$3 million each time, I affirm that the companies seek IDG Ventures not because of financial reason, if the project is feasible and high-efficiency, it’s easy to attract capital from local and foreign investors, they seek IDG Ventures that is to find investment values about technology, management skill and business ability from IDG Ventures’ specialist team.
In recent trip visit of IDG’s Chairman who unveiled to expand investment in education and health care fields.

However, there are no businesses belong to the 2 above mentioned fields in IDG Ventures’ new investment portfolio, could you tell the reason why?

We are still selecting the investment portfolio from health care and education businesses, there are 2 dossiers of education that is being considered, if there’s nothing change, we shall announce investment in 2 education projects in the next 2 or 3 months but we have not sought any health care project yet.