Vietnam’s Touchstone Partners to roll out second fund to fuel tech startups

By Tuong Minh
Mon, July 31, 2023 | 3:02 pm GMT+7

Ho Chi Minh City-headquartered venture capital (VC) firm Touchstone Partners is set to raise its second fund to continue financing Vietnam's tech landscape, with the new fund’s target size undisclosed.

“The Touchstone Mid Cap Growth Fund seeks to increase the value of fund shares as a primary goal and to earn income as a secondary goal,” writes the Vietnamese firm’s filing with the U.S. Securities and Exchange Commission (SEC), dated July 28.

This 11-page brief prospectus does not show the target size.

Touchstone Partners team at a teambuilding event in August 2022 in Hoi An town, central Vietnam. Photo courtesy of the firm.

Touchstone Partners team at a teambuilding event in August 2022 in Hoi An town, central Vietnam. Photo courtesy of the firm.

The Touchstone Partners move came while Vietnam’s tech startup scene is continuing to attract VC investments, pushing the country further towards its aim of becoming a fully digital society by 2030. South Korea-based Shinhan Venture Investment is planning to increase its Southeast Asia focus with the $200-million flagship global fund that it completed raising a few months ago.

"We are focusing on Southeast Asia, especially Indonesia, Singapore and Vietnam. We are sector- and stage-agnostic, and our investments span from seed to pre-IPO. Our strength is that we can leverage our subsidiaries, such as banks, insurance and credit cards in Vietnam, Indonesia and Japan to support our founders and help them expand to other regions,” JinSoo Lee, head of global investment at the fund told Nikkei Asia in a mid-July report by the Japanese newspaper.

In May, Touchstone Partners announced the Vietnamese homegrown firm and Singapore-based Clime Capital were jointly investing $2 million in Stride, an innovative clean technology company also based in HCMC like Touchstone Partners.

To date, Touchstone Partners has invested in 23 startups including Selex Motors (a Vietnamese maker of electric two-wheelers and battery packs), Medigo (healthcare), Credify (fintech), and Prep.vn (edtech). It mainly injects from $500,000 to $2 million per deal.

U.S. Treasury Secretary Janet Yellen, during her Vietnam visit July 20-21 to boost bilateral trade and economic ties, came to visit a Selex Motors factory in Hanoi. Climate change poses an existential threat to the world but also provides a “key economic opportunity” and way to build “greater resilience into our economies,” she said, describing the plant as “impressive.”

In April, Selex raised $3 million in a convertible note investment round led by existing investor Asian Development Bank's venture arm ADB Ventures. The three other investors were Touchstone Partners and two foreign investment funds but ADB Ventures did not disclose the two names.

Touchstone was founded in 2020 by Tran Nhat Khanh, former founding partner of the country's largest VC investment fund VinaCapital Ventures, and Ngo Thuy Ngoc Tu, co-founder and chairwoman of Yola Education, an edtech firm.

E-commerce, SaaS (software as a service), healthcare technology, and electronic vehicle sectors are where Touchstone seeks to invest in.

VinaCapital Ventures of leading Vietnamese asset and investment company VinaCapital said last October that it planned to launch its second fund in 2023 with a target size of $100 million, focusing on providing growth capital.

The new fund, VinaCapital Ventures II, will be for sizes up to $10 million per investment at the Series A+ and Series B stages, said HCMC-headquartered VinaCapital, a Vietnamese leading investment management firm with a diversified portfolio of around $4 billion.

Comments (0)
  • Read More
Vietnam top Southeast Asia source market for South Korea tourism

Vietnam top Southeast Asia source market for South Korea tourism

With over 435,000 visits recorded as of mid-October this year, Vietnam tops Southeast Asia as a source market for South Korean tourism, officials say.

Economy - Tue, November 19, 2024 | 12:12 pm GMT+7

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia-based EQ Resources Limited has acquired its fellow firm Tungsten Metals Group (TMG), which owns and operates the largest ferrotungsten (FeW) factory outside China.

Companies - Tue, November 19, 2024 | 11:00 am GMT+7

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities JSC (TCBS) has become the largest securities company in Vietnam by charter capital after finishing a rights offering last week.

Finance - Tue, November 19, 2024 | 9:11 am GMT+7

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam's airports operator ACV expects to earn $145 million from non-aviation services this year, accounting for around 18.83% of its total revenue, which is modest compared to other countries, said deputy general director Nguyen Duc Hung.

Companies - Tue, November 19, 2024 | 7:45 am GMT+7

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

A seminar themed “Removing legal bottlenecks for infrastructure and property investment” will be organized by The Investor in Hanoi on Tuesday.

Economy - Tue, November 19, 2024 | 7:00 am GMT+7

Indonesia promises Asia-Pacific investors more incentives

Indonesia promises Asia-Pacific investors more incentives

Indonesian President Prabowo Subianto recently told the press that he will create more incentives and expand special economic zones (SEZs) so as to lure investors from Asia-Pacific.

Southeast Asia - Mon, November 18, 2024 | 11:01 pm GMT+7

Indonesia, Brazil enhance aviation cooperation

Indonesia, Brazil enhance aviation cooperation

Indonesia's state-owned aircraft manufacturer, Dirgantara Indonesia (DI), and Brazilian aerospace company Embraer have signed a memorandum of understanding (MoU) to expand collaboration in the commercial aviation sector.

Southeast Asia - Mon, November 18, 2024 | 11:00 pm GMT+7

Indonesia eyes to become member of BRICS

Indonesia eyes to become member of BRICS

Indonesian President Prabowo Subianto has shown his country’s desire to become a member of the BRICS - the alliance of major emerging economies initiated by Brazil, Russia, India, China, and South Africa.

Southeast Asia - Mon, November 18, 2024 | 10:57 pm GMT+7

Former Party chief, chairman of Vinh Phuc province face disciplinary action

Former Party chief, chairman of Vinh Phuc province face disciplinary action

Vietnam’s Central Inspection Committee has proposed disciplining Pham Van Vong, former Party chief of Vinh Phuc, and Phung Quang Hung, former chairman of the northern province, for violations related to Phuc Son Group.

Politics - Mon, November 18, 2024 | 9:17 pm GMT+7

Shaping a waterway into a key shipping channel: Viconship gets dredging nod

Shaping a waterway into a key shipping channel: Viconship gets dredging nod

A major dredging project will allow safer ship navigation and increased cargo transportation capacity on the Hai Phong shipping channel, thereby enhancing competitiveness of Vinconship’s port system, says the company.

Companies - Mon, November 18, 2024 | 7:08 pm GMT+7

Former assistant to State President appointed general director of state-owned financial firm HFIC

Former assistant to State President appointed general director of state-owned financial firm HFIC

Truong Tuan Anh, an official at the State President Office and former assistant to a state president, has been appointed general director of Ho Chi Minh City Finance and Investment Stated-owned Company (HFIC).

Companies - Mon, November 18, 2024 | 5:35 pm GMT+7

MBBank’s takeover of weak OceanBank to have limited impact on its credit profile: Fitch

MBBank’s takeover of weak OceanBank to have limited impact on its credit profile: Fitch

Military Commercial Joint Stock Bank's (MBBank) takeover of Ocean Commercial Bank Limited (OceanBank) will have limited financial impact on the former’s credit profile, Fitch Ratings said Monday.

Banking - Mon, November 18, 2024 | 5:06 pm GMT+7

Win-win philosophy indispensable for sustainable growth: Bamboo Capital founder

Win-win philosophy indispensable for sustainable growth: Bamboo Capital founder

A win-win cooperation strategy is not just desirable, but a necessary condition for sustainable development, says Nguyen Ho Nam, founder of Vietnam’s private conglomerate Bamboo Capital Group.

Bamboo Capital - Mon, November 18, 2024 | 4:46 pm GMT+7

Vietnam central bank resumes selling gold after 1-month hiatus

Vietnam central bank resumes selling gold after 1-month hiatus

The State Bank of Vietnam (SBV), the country's central bank, on Monday announced that it will reactivate the sale of SJC-branded gold bars to meet market demand.

Banking - Mon, November 18, 2024 | 4:02 pm GMT+7

Vietnam 2nd biggest market of Thai giant Central Retail in Jan-Sept

Vietnam 2nd biggest market of Thai giant Central Retail in Jan-Sept

Thailand’s leading retailer Central Retail earned a revenue of THB37.99 billion ($1.09 billion) in Vietnam in the first nine months of this year, up 0.9% year-on-year.

Companies - Mon, November 18, 2024 | 4:00 pm GMT+7

Singapore firm to invest in $19.7 mln garment factory in central Vietnam

Singapore firm to invest in $19.7 mln garment factory in central Vietnam

Singaporean-based HGQ ASIA Pte., Ltd will pour nearly VND500 billion ($19.7 million) into building a garment factory in the south-central province of Binh Dinh.

Industries - Mon, November 18, 2024 | 2:23 pm GMT+7