DFJ Vina Capital Venture Funding In Vietnam DDART

DFJ Vina. Capital: Venture Funding In Vietnam DDART – Diagnosis, Decisions, Analysis, Reality Test Stanford Sunspot Team Aditya Mittal Meng Kiat Chua Yuxin Chua Ye He

Diagnosis – Problems and Opportunities Issues: Issues • Brand building and Brand name recognition • Funds raised – Clarify goals! – Positioning (Early or multi-stage? Vietnam or SE Asia? ) – Actions (Need more funds? ) • Navigating the murky waters of Vietnam Opportunity: Opportunity • Early movers! Great scope!

Decisions Vina. Capital made 1. Focus on early to expansion stage companies 2. Invest into Pre-IPO companies going private 3. Raise more funds from GP and LP to create $50 M fund 4. Partnering with DFJ allows better branding 5. Special interest in Internet, Mobile and telecom penetration

Our Decisions for DFJ Vina. Capital 1. Keep all of early to expansion stage companies, but stick with proven technology 2. Invest into Pre-IPO companies going private, increase interaction with government 3. Raise more funds from GP and LP to create more than $50 M fund 4. Stick to Vietnam and don’t try to expand to SE Asia Focus! Stay Targeted!

Analysis – Vietnam High Growth But … Small Market • Fast growing economy – GDP growth rate third after China and India • Lot of privatization happening • Rapidly increasing foreign direct investment • Despite rapid growth, the total size is still relatively small compared to other countries • Increasing competition from outside – Increased Volatility • Internal corruption 8. 43% as compared to 3. 3% in US $52. 8 B as compared to $12, 455 B in US

Analysis – Internet and Telecom in Vietnam $300 M TAM as compared to $1 B in US for IT in 2007 But…Vietnamese govt. planned to inject $3. 6 B into the market to increase internet penetration from 15. 8% to 34% by 2010. Demographic: Most people under Age 35 Proven: E-commerce and other web technologies already proven in other nations

Analysis – Venture Capital in Vietnam/ASEAN From 1998 through 2007, the quality of entrepreneurial opportunities increased and a venture entrepreneurship culture was established. Singapore was considered by many to be the most mature venture capital market in Southeast Asia. Malaysian Ventures started in 1984, and was followed by 900 Multinationals and government has also taken great interest to maintain investment funds The high growth market of China attaracted a rush of venture funds to China…and Vietnam can soon be seen as a “little” China

Analysis - Draper Fisher Jurvetson Offerings • • • Top notch brand from Silicon Valley Better deal flow Network competitive advantage Network intelligence Network local support, global reach

Analysis – Vina. Capital Positioning 1. 2. 3. 4. Vina. Capital is the evangelist for Vietnam Started in 2003 in Ho Chi Minh city Needs partnerships for stability and branding Helps DFJ in exploiting the Vietnam technology market 5. Has $250 M in the Vietnam real estate market 6. Creating $50 M fund for the technology market

Reality Test - implementation risks connected with your decisions. • Biggest Risks are: – Bad Legal System and high corruption – Lack of infrastructure to find right funding opportunities • Hedge risk by adopting only technologies proven in the China and US markets • Hedge risk of increasing volatility in market by raising more money to get better market penetration and maintain focus in Vietnam and not SE Asia

Reality Test - implementation risks connected with your decisions. • Cultural Chasms – “Do you think I should do the dance here in Vietnam? ” Tim asked his affiliate in Hanoi and Ho Chi Minh – The “Riskmaster” Don and Tim instantly hit it off • Economic – don’t see a downside to helping boost the economy • Ethical – don’t see any downside to honestly helping people build meaningful new companies

Thank you Stanford Sunspot Team Aditya Mittal Meng Kiat Chua Yuxin Chua Ye He

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Analysis • Analysis of company, customers, channels, competitors, economics, environmental factors and ethical issues

• Diagnosis Where is this market in its life cycle? How attractive is the market opportunity? • • Decisions What is your marketing (or business) plan? • • Analysis Why is your plan the best way to go? • • Reality Test What are the risks of your plan, and how can we manage those risks?

• marketing leadership in cross functional teams; • economic analysis to assess the value of marketing activities; and • ethical responsibilities to customers, investors, and the community,