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 T&T Group, Qatar partner to build $3.2 bln Disneyland park in Hanoi

Vietnam T&T Group, Qatar partner to build $3.2 bln Disneyland park in Hanoi

Vietnam’s conglomerate T&T Group and Qatar’s JTA International Investment Holding will jointly build a $4.5-billion sports and entertainment complex in Hanoi, featuring a Disneyland theme park worth $3.2 billion.

Infrastructure - Fri, November 1, 2024 | 12:08 pm GMT+7

AirAsia to collect mandatory carbon fee starting 2025

AirAsia to collect mandatory carbon fee starting 2025

Malaysia-based carrier AirAsia will begin imposing a mandatory carbon fee on all passengers starting January 1, 2025, according to the country’s Transport Minister Anthony Loke.

Southeast Asia - Fri, November 1, 2024 | 12:05 pm GMT+7

At least seven killed in bridge collapse in Indonesia

At least seven killed in bridge collapse in Indonesia

At least seven people were killed and dozens of others were injured when a seaside bridge collapsed in the Maluku island region in eastern Indonesia on Thursday.

Southeast Asia - Fri, November 1, 2024 | 12:04 pm GMT+7

Thailand to raise retirement age to 65

Thailand to raise retirement age to 65

Thailand's Labor Ministry plans to raise the retirement age for both private and government sectors to 65 years, the same as in Singapore and Switzerland, according to Labour Minister Phiphat Ratchakitprakarn.

Southeast Asia - Fri, November 1, 2024 | 12:03 pm GMT+7

A quarter of Singapore’s fish farms stop operations in past year

A quarter of Singapore’s fish farms stop operations in past year

About a quarter of Singapore’s sea-based fish farms have exited the industry over the past year, figures from Singapore Food Agency (SFA) showed.

Southeast Asia - Fri, November 1, 2024 | 12:02 pm GMT+7

Malaysia plans to launch national AI office

Malaysia plans to launch national AI office

The Malaysian Government plans to launch the National Artificial Intelligence Office (NAIO) in Kuala Lumpur on December 12, according to the country’s Digital Minister Gobind Singh Deo.

Southeast Asia - Fri, November 1, 2024 | 12:00 pm GMT+7

Vingroup posts Q3 earnings of $80 mln, highest in five years

Vingroup posts Q3 earnings of $80 mln, highest in five years

Vingroup, the largest private multi-industry conglomerate in Vietnam by ecosystem, recorded a consolidated net profit of VND2,015 billion ($79.54 million) in Q3/2024, the heftiest quarterly earnings in the past five years.

Companies - Fri, November 1, 2024 | 11:54 am GMT+7

Thailand SCG to invest $700 mln more in $5 bln petrochemicals complex in Vietnam

Thailand SCG to invest $700 mln more in $5 bln petrochemicals complex in Vietnam

Thailand’s Siam Cement Group (SCG) will invest an extra $700 million in the $5.2 billion Long Son Petrochemicals Complex (LSP) in Vietnam’s southern province of Ba Ria-Vung Tau to diversify its production.

Industries - Fri, November 1, 2024 | 10:20 am GMT+7

Vietnam manufacturing activity rebounds, recovering from typhoon Yagi

Vietnam manufacturing activity rebounds, recovering from typhoon Yagi

The Vietnamese manufacturing sector in October started to recover from the effects of September's super typhoon, recording renewed increases in both output and new orders.

Economy - Fri, November 1, 2024 | 8:34 am GMT+7

Vietnam private lender VietBank logs 96% profit growth in 9 months

Vietnam private lender VietBank logs 96% profit growth in 9 months

Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank) posted a 96% year-on-year surge in pre-tax profit in the first nine months of 2024 to reach VND820.4 billion ($32.46 million), or 78% of the year's target.

Banking - Fri, November 1, 2024 | 7:45 am GMT+7

Maersk opens its first bonded warehouse in Vietnam

Maersk opens its first bonded warehouse in Vietnam

Denmark's integrated transport and logistics giant A.P. Moller - Maersk (Maersk) on Thursday opened its first bonded warehouse in Vietnam at SLP Park, Nam Dinh Vu Industrial Park in Hai Phong city.

Industries - Thu, October 31, 2024 | 11:44 pm GMT+7

ABBank incurs $14 mln loss in Q3

ABBank incurs $14 mln loss in Q3

Hanoi-headquartered An Binh Commercial Joint Stock Bank reported a pre-tax loss of VND343.5 billion ($13.59 million) in the third quarter of this year, while some other private Vietnamese banks posted strong profits.

Banking - Thu, October 31, 2024 | 9:29 pm GMT+7

Vietnam’s emergence as regional manufacturing hub a significant logistics opportunity: SuperPort exec

Vietnam’s emergence as regional manufacturing hub a significant logistics opportunity: SuperPort exec

Southeast Asia’s rise as a vital logistics hub with Vietnam positioned as a key manufacturing center presents a significant business opportunity, says Yap Kwong Weng, CEO of Vietnam SuperPort.

Companies - Thu, October 31, 2024 | 9:01 pm GMT+7

Indonesia steps up support for textile industry

Indonesia steps up support for textile industry

Indonesia’s President Prabowo Subianto held a close-door meeting with several ministers on Tuesday to discuss the current situation of Indonesia's textile industry, particularly focusing on textile giant Sri Rejeki Isman (Sritex).

Southeast Asia - Thu, October 31, 2024 | 6:01 pm GMT+7

Thailand speeds up plans to construct six new airports

Thailand speeds up plans to construct six new airports

Thailand’s Transport Ministry is accelerating development and construction projects on six airports with an aim to become the region's transportation hub.

Southeast Asia - Thu, October 31, 2024 | 6:00 pm GMT+7

Thailand develops eco-friendly seaport model

Thailand develops eco-friendly seaport model

Thailand is striving to implement environmental protection and social sustainability solutions in developing the country’s major infrastructure projects, such as the development of Phase 3 of Laem Chabang Port, Thailand's only deep-sea port.

Southeast Asia - Thu, October 31, 2024 | 5:58 pm GMT+7