VIETNAM STARTUP INVESTMENT AND M&A:

5 INTERESTING TRENDS IN 2012-2013

Hatch Fair12/2013

PHAM Minh Tuan, PhDFounder & CEO, TOPICA Education Group

Tran Manh CongCo-Director, Topica Founder Institute

TOPICA Education Group

High-quality Online University Programs • 7 University Partners Including Top-tier• Bachelor’s of Business, Accounting,

Banking, Law, IT• Expanding into Indonesia,

Philippines, Thailand

Bill Gates & Deputy PM Phạm Gia Khiêm Launching TOPIC64, 4/2006

Education Minister of Victoria, Australia Teaching TOPICAAmazing, 6/2012

Graduates of TOPICA Founder Institute, 2012

English Training Franchise for Kids Based on Online Game• 12 Franchisees• Official Test Provider for Min. of

Education’s Internet English Olympics (IOE)

Vietnam Chapters of Silicon-Valley Accelerator Network• 16 Graduates: Appota, Biaki,

Tapmee, Yton...• Who’s Who of Accomplished

Founders Served as Mentors

Finalist, 2007

INTERNATIONAL AWARDS

Winner, 2011Finalist, 2008

Young Global Leader Honoree, 2012

Team: 250 Full-time; 100 Part-time; 1100 Industry Instructors

VNG (Vinagame)• 4/2013: New shares issued to Founder at USD 200m valuation• Founder Le Hong Minh’s net worth comparable to Top 15 on VN Exchanges• 8/2010: Goldman Sachs, Tencent bought shares from IDGVV• IDG Chairman McGovern: 75x return on 2004 Series A investment

Vatgia• Rumored valuation of last round: $75m (Mitsui, Japan)• 9/2011: Called by Tetsuiya Mori (MD DeNA Holdings) “Largest E-commerce company in SEA”

2013 Q1: Smaller Exits• Vietnamworks: USD 20m full exit to En-Japan• Nganluong (payment): 50% stake with partial exit (amount undisclosed) to MOL (Malaysia)• Kiemviec.vn (jobs): full exit (amount undisclosed) to CareerBuilder (US)

VMG Media• 8/2011: NTT-Docomo bought 25% stake, valuation USD 75m, 2.5x return in 1 year• 2010: 6 funds bought stakes at ~USD 30m valuation

Punch Entertainment• 9/2011: DeNA acquired, valuation USD 37m (rumored)

BAO GIỜ SÓNG ĐẾN ĐÂY?Success Stories of the First Wave

Are Encouraging a Second Wave of Startups

4Trend 1: Startup Investing is

NOT Slowing Down, Although Deals Are Smaller2013: 25 Deals2012: 24 Deals2011: ~10 Deals

5Trend 2: Amidst OTT War,

E-Commerce, Mobile, Edtech Getting HotOut of 49 Deals During 2012 - 2013:E-Commerce: 12 Deals (not including Rocket Internet)Mobile apps: 8 DealsEdtech: 6 Deals

6Trend 3: Funding Startups Targeting

Global/Regional Markets Rather than Domestic

2012-2013: 4 deals into startups targeting global marketsPreviously: Almost none

7Trend 4: Japanese Investors Are Taking OverInvestors from: Japan Europe US Vietnam

2013 Deals 10 1 4 5

2012 Deals 4 6 3 10

2004-2011 Deals ~12 Few >50 Few

Where are the Singaporean Investors?

8Trend 5: Strategic Investors

Not Only Acquiring But Also Making Series A's

6 Early Stage Investments by Strategic InvestorsAre VCs & Angels Not Supposed To Make Money in the Middle?

9Topica’s Contribution to

Developing the Startup Community Organized and supported

40 events, ~7,000 participants(with grants from World Bank Infodev)

Served on Steering Committee of 2 largest Online Communities for startups: Launch (8k members), Mobile Monday (4k members)

10

Mentors

Graduates

VIETNAM STARTUP INVESTMENT AND M&A:

5 INTERESTING TRENDS IN 2012-2013

Hatch Fair12/2013

PHAM Minh Tuan, PhDFounder & CEO, TOPICA Education Group

Tran Manh CongCo-Director, Topica Founder Institute