Microsoft and Southeast Asian VC collaborate to launch Vietnam startup accelerator

Vietnam’s startup ecosystem is making strides toward maturity. From a growing ecommerce sector to the government itself taking an interest in entrepreneurship, it all points toward a growing opportunity for founders and investors alike.

Now a new startup accelerator is about to open its doors to early-stage startups in the country. The CLAS-Expara Vietnam accelerator is a collaboration between Vietnam’s Customer Loyalty and Acquisition Services Company (which was born in Microsoft’s Innovation Center), Singapore-based venture capital and entrepreneurship consultancy firm Expara, and Microsoft Vietnam.

(UPDATE, 6/11: Updated with comments from Expara CEO Douglas Abrams.)

“We think Vietnam is a very exciting emerging market for startups and venture capital,” Douglas tells Tech in Asia. “There are a lot of entrepreneurs with good ideas, a sizable domestic market, a stable government looking to grow the sector and a high level of entrepreneurial energy.”

Douglas says the goal is to introduce a new type of acceleration to the Vietnam market. The accelerator will focus on building companies that are worth investing in and helping them bring their products to market with the help and support of Microsoft. “We are VC investors ourselves, so we know how to help our companies to build a scalable business. And because our accelerator is VC-linked, at the end of the program we will be able to provide our companies with their next funding round,” he explains.

See: Getting into Vietnam’s startup scene? Here’s 10 people you should meetThe 120-day program will give participating startups access to Microsoft’s BizSpark and BizSpark Plus packages. CLAS will provide the facilities and manage the day-to-day operations of the accelerator. Expara will provide workshops on entrepreneurship, business and financial planning, competitive strategy, fundraising, and pitching to investors.

Expara plans to invest US$10,000 into promising startups at the accelerator program’s mid-point review. After Demo Day, it will invest up to US$500,000 in successful graduates.

In the case of the former, no equity in the startups will be given at that point, as Expara will use SAFEs, or Simple Agreements for Future Equity – short documents containing the basic terms of investment in an early stage company, so it can get the funding as soon as possible. It’s an idea originating at US-based startup incubator Y Combinator.

As for graduate companies, Expara will look for equity according to the amount invested and the company’s valuation. Douglas explains Expara typically takes 10 to 20 percent for seed-stage investments.

The investment will come from the Expara Ventures 3 fund, which is aimed at investments in Southeast Asia. With this fund, Expara wants to be lead investor in seed-stage and series A-stage tech companies, including interactive digital media companies. For its investment, Expara requires a seat in its portfolio companies’ board of directors.

The deadline for startups to apply to the new accelerator’s first batch is November 23, 2015.

What do you think about the opportunities in the Vietnam startup ecosystem? Are accelerators in the country a good way to grow startups beyond the border?