On June 22, 2022, Wiziin is honored to sign a memorandum of understanding (MoU) with CardinalRain – CardinalRain Inc. Representative, including Founder, Mr. CY Huang; Vice President, Ms. Nicole Chan; Director, Mr. Julian Su, InnoSquare Project Manager, Ms. Pham Thi Thoa, and InnoSquare project managers, Mr. Dang Thanh Chung and Mr. Nguyen Trung Quan. Representative Wiziin Inc. including, Founder and CEO, Mr. Nguyen Ngoc Tien; Head of Marketing Department, Ms. To Tam; Head of Operation Department, Ms. Lai Tram; Investment association, Mr. Nguyen Duy.
Founded in Taiwan, CardinalRain is an active accelerator program that has a strong strategic innovation ecosystem for startups, partnering with Amazon Web Services, New Taipei City Government, and FCC Partners which help Taiwan startups to scale up to other markets in South East Asia.
During the signing ceremony, the two sides emphasized the importance of the development vision to the international market for Startup Vietnam and Taiwan and expressed their desire and goal to create a startup ecosystem in the region of Asia Pacific. The two sides agreed in the coming time to continue to promote cooperation in knowledge sharing, expert connection, and investment opportunities on three main aspects including
Web 3.0 blockchain technology
CardinalRain’s founder, Mr. CY Huang shared, “The signing of the memorandum of understanding marks an important step in promoting cooperation between Taiwanese and Vietnamese startups, which promises to be a great future. bring more cooperation results in the future”.
The founder and CEO of Wiziin Inc., Mr. Nguyen Ngoc Tien shared that the two sides will gradually realize the set cooperation plans, and believe that the cooperation of the two sides will create great value for both sides for the startup communities in Vietnam and Taiwan.
Entrepreneurs are often so focused on trying to “close the deal” with the VC – and always try so hard to answer any questions posed by the VC – that they forget to ask the VC any questions!
Here are 12 questions founders should ask potential investors more often:
1. Is there a CAPITAL DEPOSIT?
You want to start your fundraising process by finding a lead investor. If a certain VC refuses to take the lead, keep talking to them, but at the same time make it a priority to find another partner who is a better fit. Many fundraising processes were abandoned because the founders could not find primary investors.
It’s easy to find dozens of companies that want to fill a round, but most will want someone else to take the lead first. A lot of founders only discover this fact after having conducted more than 3 meetings for negotiation – this is a HUGE waste of time.
2.HOW MUCH % OF THE FUNDS IS THIS INVESTMENT?
In general, the larger the percentage, the better – that means the VC has more “flesh in the game”. Keep in mind, the larger the number, the more closely investors will monitor your progress!
3. DO YOU STAY ON THE BOARD OF DIRECTORS?
Here’s another question that gauges how important VCs are to your startup. Financial capital is easier to obtain and deploy, it is the reputation capital and time of VCs that are the real currency in today’s venture capital market.
4. HOW MUCH BETWEEN THE INITIAL AND CONTINUOUS INVESTMENT?
Most VCs make the initial investment and “reserve” the funds to maintain their ownership in future rounds or to help a struggling startup in need of cash.
This reserve is often described as a ratio, for example. 4:1. So if a VC invests $1 million in your #Seed round, they theoretically have $4 million available for your future rounds. But don’t be sure that they will, especially if you have a rough start…
5. HOW MUCH ONE TIME DO YOU INVEST IN THE NEXT?
VCs are not lifecycle funds, but they always make small investments in the startup’s next round of valuation to signal their support for the venture capital market. However, most funds make individual decisions about the companies in their portfolio, and that can create “signaling risk” for startups.
6. HAS VC LED ANY NEXT INVESTMENTS?
One benefit of having ample reserves is that VCs can “bridge you” if you don’t achieve breakout growth. However, some companies have policies against this, which also negates the benefit of a large reserve fund for your startup.
7. WHAT ARE THE FUTURE REPORTING REQUIREMENTS?
You should set expectations for the communication process from the start – some VCs like to visit you quarterly. Others may want you to stay updated by presenting at the annual partnership meeting.
8. DO WE COMMUNICATE WITH ANYONE ELSE ON THE TEAM?
Some VCs will introduce you in CEO forums, introduce you to cross-functional teams of experts, and cover all your needs. Others will write checks and dig until things start to work out.
9. HOW does the VC handle POTENTIAL COMPETITIVE SITUATIONS?
Ask VCs how to share information in their portfolio. What if a company appears to be #pitching for them or they receive a pitch deck from a competitor to your startup – what is their policy on how to handle these situations?
10. VALUATION ROUND OR CONVERTIBLE LOAN
Each VC has a different preference. Today, most VCs will participate in both a valuation round and a convertible loan, depending on the situation. Find out which will happen and they will usually also ask for a side agreement.
A sub-agreement that enacts simple agreements on future equity. The sub-agreement includes a number of rights that are sometimes granted exclusively to investors, such as the right of first preference (or right of way), the “Major Investor” right, the right to reimburse expenses, the right to information, and observer rights.
11. HOW IS THE STARTUP ASSESSMENT PROCESS?
Each company has different standards, but generally, you should expect them to ask for references and access to a company’s financial and operating data. The later the funding round, the more detailed you should expect them to do.
12. HOW MUCH IS THIS INVESTMENT IN THE FUND?
This is a good question to ask if this VC is a new fund or outside of the traditional VC circle. It would be helpful to know if your potential VC will be around for the next few years. This is less of a concern with established funds.
This is not an exhaustive list. Of course, you want to ensure that you and your investors see firsthand the core aspects of your business, the product roadmap, the speed at which you plan to deploy capital, and so on.
A few more notes:
HISTORY IS BETTER THAN THEORY
It’s easy to talk about what you’re going to do; It’s more impactful to talk about what you’ve done. Be suspicious if reputable investors answer your questions abstractly rather than with concrete examples.
Don’t ask all of these questions in your first meeting. “Are you in the lead?” is the only question you should definitely ask first; The rest should be through email and meetings Monday and Tuesday when you feel interested.
DON’T JUST ASK VC
Do your own due diligence on the VC. Get in touch with founders that VC backs have been successful and, more importantly, those that have not! This is too big of a commitment to entrust completely to your intuition!
We’re excited to partner with HubSpot for Startups to offer their program designed specifically to help startups grow and scale better, and faster – at a startup-friendly cost!
What is the HubSpot for Startups Program?
EDUCATION RESOURCES AND TAILORED TRAINING Content, masterclasses, and 24/7 support to get your startup growing. From board deck templates to quick tips on customer acquisition, this content is made just for you. Plus, you’ll have access to world-class support from HubSpot experts and a startup-friendly onboarding experience.
PROFESSIONAL SOFTWARE, STARTUP PRICING Access to HubSpot Growth Platform, a full suite of software for marketing, sales, and customer service, with a completely free CRM at its core at a startup-friendly price, to help you grow and scale better. The software grows as you do, so you have access to in-person product training, too. All of this is up to 90% off.
INTEGRATED PLATFORM FOR STARTUPS Access to over 500+ software integrations, many at startup-friendly pricing, as well as the opportunity to build integration on the HubSpot platform.
Are you eligible?
If your startup is currently joining Wiziin Platform and meets the following funding criteria:
1. A startup with under $2 million in funding
Get up to 90% off HubSpot software in your first year, 50% off in your second, and 25% off ongoing.
2. A startup that has raised over $2 million in named funding up to and including Series A
Get up to 50% off in your first year, and 25% off ongoing.
***HubSpot for Startups pricing is applicable to net-new Professional or Enterprise level products. Starter level products are excluded, unless bundled with qualifying Professional or Enterprise purchases or upgrades. Customers may not apply the startup program pricing to existing subscriptions of any level.***
Redeeming these benefits
Fill in this form to apply via Wiziin referral, we will support eligible startups to the Program.
The COVID-19 pandemic has posed many challenges to the business world, especially to Venture Capital (VC) investment, when the risk factor is now multiplied given the increasing uncertainty sentiments. However, as individuals and businesses are trying to recover and respond to changes, along with challenges there are opportunities arising. This applies well to the Fintech industry, where businesses and financial institutions are collaborating to facilitate seamless digital finance for customers and corporations. Digital financing is no longer an additional fancy service package, but an essential when everything is expected to operate online.
According to a Fintech investment report by KPMG International, the first half of 2021 has seen a strong rebound in Fintech investment, with respect to both deal value and deal amount. The momentum is expected to carry on to the second half of the year, with focus spanning wide to different segments of Fintech, including
B2B services (banking services, not only in the payment sector but also in insurance, wealth management, regulatory, etc.)
So how has Fintech been riding the COVID-19 wave?
A study from Deloitte, “Beyond COVID-19: New opportunities for fintech companies”, has identified several advantages that the industry can leverage during times of the pandemic.
Expertise in data processing – a skill underlying credit and line insurance
Strong focus on digital customer experience
Leverage of partnership and collaboration – digital service providers are accustomed to shaking hands with large financial institutions (e.g. banks, funds, etc.) to complete the service chain
Unburdened by the complex, disparate, legacy systems – allowing them to quickly integrate cloud-native approach and take advantage of API system.
In short, fintech’s differentiated capabilities, agility, and innovation are helping it not only to survive the pandemic but also to take the opportunities and create breakthrough disruptions. As the huge potential of Fintech has proved itself a lucrative investment, let’s dive into some insights from VCs – one of the main sources of funding behind this rising industry.
Inside from VCs – main sources of funding behind this rising industry
FinchCapital, a Fintech and AI focus fund, believed that the crisis accelerates a “fundamental shift” in the lives of people and businesses, and this is where disruptive Fintech companies step in to help society respond to changes. While severe impacts are being seen across all industries, FinchCapital believes in the light at the end of the tunnel for these innovations, especially in the field Insurtech, Proptech, and Online mortgage, because post-Covid, a contact-free, data-driven, and insurance-protected lifestyle is the new normal.
In a webinar on Fintech investment (2021), representatives from DoVentures and Touchstone Partners – two significant players in Vietnamese VCs, expressed positive views on the future of Fintech, especially in Wealth management and online loan/mortgage/ BNPL (Buy now pay later) sectors. The movement is also supported by the State Bank of Vietnam (SBV)’s process of drafting a new decree on Fintech regulations, which will clear some of the grey areas and benefit fintech businesses, especially P2P lending largely. It was also emphasized that for such a sophisticated industry like fintech, the investors are looking for startups whose teams comprise both financial and technology experts. While the combination is clear in the industry’s name, such well-rounded expertise is not easy to find. Ideas that involve both integrations of new technology and response to financial system issues are more success-guaranteed.
Manuel Silva Martinez, Partner from Santander InnoVentures (SIV), also shared his interesting views on fintech investment after researching the industry’s global movement. Whilst being an advocate for “classic fintech” (mentioning “B2B blockchain application in the capital market”), the fund is also eyeing more forward-looking segments of fintech that directly drive customer decision makings. Similar to the aforementioned fund partners, Manual also named Proptech (mortgage cycle), Mobility (Car ownership), Logistic (trade and supply chain finance) being some of the potentials to pay attention to in the coming years.
In general, the pandemic has placed all businesses under distress, and fintech is no exception. However, with its high adaptability and data manipulation expertise, fintech is acing the crisis, through providing businesses and end-customers with innovative solutions that come as saviors during difficult times. Given the increasing trend of fintech investment, we expect the industry to thrive even further and create disruptive changes to our societies when COVID is behind.
To learn more about insight into fintech investment from VC’s point of view, why don’t you take a chance to join our upcoming event called Etalk Adventure to the Venture on Thursday night 23.09.2021 at 07:00 PM (VNT)