Venture capital firms based in Vietnam boast the highest share of women in investment decision-making roles in Southeast Asia, according to a recent report by DealStreetAsia – DATA VANTAGE. The country is likely to maintain its lead in this area as more local women gravitate towards a career in the industry.
“I have been seeing more and more young women getting into VC in Vietnam, in particular, compared to when I first started, and I think that is very exciting. I hope to see them continue to charge ahead and become cheque writers,” says Hau Ly, a partner at Ascend Vietnam Ventures.
Ly, who started her career as the first employee of the Vietnam-focused fund of Silicon Valley VC firm 500 Global (then known as 500 Startups), says she is seeing progress being made to improve diversity at VC firms across Southeast Asia. Some of the push is also coming from limited partners (LPs), who commit capital to VC funds.
“While the level of interest may vary among different LPs, in general, they are becoming more attentive to it… whether LPs have explicit impact or gender mandates or are purely financially driven, there is a growing understanding that diversity goes beyond token representation and can be instrumental in any VC firm’s long-term success,” Ly said in an interview.
Excerpts of the interview:
Could you share your journey to becoming a partner?
I entered the VC industry in 2016 as an analyst at 500 Startups Vietnam (500VN), the first Silicon Valley VC to have a permanent presence in Vietnam.
As the first official hire, I have had the chance to work across different functions and contribute to our team’s mission, starting from our 500VN days and continuing after the spin-off and launch of our new firm, Ascend Vietnam Ventures (AVV). During my tenure, I took on the role of junior lead in a number of deals, including Base (SaaS, acquired), Pique (e-commerce enabler, acquired), and Axie Infinity (NFT gaming unicorn). As my responsibilities expanded, I also led several accelerators, incubators, and boot camps for 500VN and AVV, working closely with approximately 80 startups in total. My work now spans investments, portfolio support and management, communications and branding, and fundraising and IR support, among other things.
I eventually became a partner at AVV in late 2020.
What were the challenges you faced during this journey? How difficult is it for a woman in a male-dominated industry?
VC is a relatively new industry in this market. It is also very fast-paced, requiring you to stay on top of new technologies and market developments. Thus the learning curve is steep, and I believe many fellow VCs, regardless of their gender, would attest that there is a lot of learning as you go.
As a woman in the field, I have also faced some unique challenges, especially in the earlier stage of my career. There were instances when I walked into a room with my male colleagues, and founders would only talk to them and overlook me, likely assuming I was not an investor. There was even a time when a founder reached out to me over email and, alongside his pitch deck, asked if I was single. When one of the GPs learned about the situation and intervened, the founder responded with, “Are you her boyfriend?” This particular incident was extreme — and hopefully — unusual, but I do want to share it because I feel like when you are a young female VC professional, sometimes people might not take you as seriously as your male counterparts. Women VCs, in turn, might feel the need to put in extra effort to earn a seat at the table. That pressure might subside when we become more senior and have merits and experience to back ourselves up, but it does not go away completely. I am grateful though to have a support network around me to help me navigate these challenges.
Why do we see fewer women in investment decision-making roles at VCs in the region?
There are a number of factors that could contribute to this underrepresentation, including the legacy of the tech industry as a male-dominated field, the lack of support and resources for women who do choose this line of work, potentially uninclusive work cultures, and so on. However, we should strive for positive change so that the industry can welcome more women in investment decision-making roles.
I have been seeing more and more young women getting into VC in Vietnam, in particular, compared to when I first started, and I think that is very exciting. I hope to see them continue to charge ahead and become cheque writers.
Do you think there is a correlation between the lack of diversity at VC firms and the gender funding gap among startups?
Yes, there has been a lot of research that highlights the correlation, showing how the lack of diversity at VC firms could perpetuate biases and disparities against women-led startups, both implicit and explicit. If we want to address the gender funding gap, we certainly need to address them at all levels and stakeholders, including VCs.
This is not about diversity just for the sake of it. It is important for VC firms to recognise that they could leave a lot of value on the table when they lack diversity in general and do not have women investors on their team in particular because they are missing out on differentiated knowledge, experience, network, and other resources that we can offer.
Are things getting better now? How do you expect gender diversity in VC to look in the next few years?
I’m seeing positive signals of progress in Vietnam and across the region as more and more women enter the field and establish themselves. I recall that DealStreetAsia’s data suggested in 2022 that less than 30% of VC firms in SE Asia had a female partner. I sure hope that figure will increase significantly in the next five years or so.
Do you think LPs care about gender diversity at the VCs they commit capital to?
Yes, from our experience interacting with LPs at AVV, they do care about gender diversity.
While the level of interest may vary among different LPs, in general, they are becoming more attentive to it. There has been research that shows VC firms led by female fund managers outperform male-led firms. Whether LPs have explicit impact or gender mandates or are purely financially driven, there is a growing understanding that diversity goes beyond token representation and can be instrumental in any VC firm’s long-term success.
What advice would you give other aspiring women VCs?
My first piece of advice is to be your own champion. As women, it can sometimes be challenging to assert ourselves, whether it’s asking for what we need, taking professional risks to advance our careers, or being kind to ourselves to allow for mistakes and lessons along the way.
Second, as I mentioned earlier, I consider myself fortunate to have a strong support system that includes my family, loved ones, team, and other friends in the industry. So I would also like to encourage other women VCs to be intentional about building and leveraging a support system for themselves – people who believe in you, push you to grow, and give you the resources you need to do so. Remember that you are not alone, and there are others who can help you in your journey as a woman VC.
This interview appeared in the Women in SE Asia’s VC Ecosystem 2023 report, which is available exclusively to DealStreetAsia – DATA VANTAGE subscribers. Subscribe/upgrade your subscription now to access our entire set of reports.
