NextTech Chairman Nguyen Hoa Binh.
The Invasion of the “Rich Kid” Startups
Episode 5 of Shark Tank Vietnam Season 7 could be dubbed the invasion of the “rich kids”. The first pitch was from Yeast Era, a startup providing 100% protein products from microbial yeast, founded by Le Thanh Hoai Phuong, who invested 100 billion VND of her family’s meat business into the venture, along with 67 billion VND to build a factory and 5 years of research to develop the product.
“Your family is rich, isn’t it? Who are your parents?”, exclaimed Shark Nguyen Hoa Binh after hearing the female founder’s pitch.
Eventually, Yeast Era decided to partner with Shark Nguyen Van Thai, securing a deal of 15 billion VND for a 15% stake, along with the condition of exclusive online business rights in the Vietnamese market for 1 year.
The second pitch also featured another “rich kid” – Vo Kim Vinh, an 18-year-old American student who founded Double C, a broken rice brand with the ambition to build a fast-casual chain, modernizing Vietnamese cuisine and expanding both domestically and internationally. The initial invested capital was over 1 billion VND.
Double C has opened its first store in a prime location, right next to Nguyen Hue walking street, in the heart of District 1 in Ho Chi Minh City. However, the store is only open for 3 hours during lunchtime, selling 40-50 rice portions per day, priced from 30,000 to 120,000 VND each. Shark Pham Thanh Hung bluntly commented that Kim Vinh’s business model was “rather naive”
“House Poor Overcoming Adversity” vs. “House Rich Overcoming Comfort”
“Observing you, I can say that you have the aura of a ‘rich kid’ startup, meaning your family or ecosystem has favorable conditions“, Shark Nguyen Hoa Binh told Kim Vinh.
The Chairman of NextTech Group advised that “rich kid” startups need to be even more cautious, as most of the “rich” startups he has invested in tend to struggle with P&L management early on.
Vo Kim Vinh – Founder of Double C broken rice brand
“It’s admirable when someone from a poor family overcomes adversity to start a business. But in reality, I think it’s even more admirable when a ‘rich kid’ overcomes their comfort zone. They have to navigate numerous pitfalls, learning to let go of some things and focus on optimizing others. That’s the real reason why businesses collapse“, Shark Binh expressed his viewpoint.
Kim Vinh’s case reminded Shark Binh of his own journey at the age of 18 back in 2000. At that time, Shark Binh started his entrepreneurial path by trading computer mice.
“I ended up losing a lot of money, to the point of being terrified of the losses. But ever since then, I’ve never felt that same level of fear, even when facing potential losses of billions or even tens of billions of VND. It’s all about experience. Keep doing what you’re doing, and be prepared to embrace failure, turning those experiences into your asset“, Shark Binh advised Kim Vinh.
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Startups have seen a remarkable surge in revenue and interest after securing funding on Shark Tank Vietnam season 6, even before sealing the deal in reality.
Startup selling phone cases at 500,000 VND/piece showcases 6-fold revenue increase after appearing on Shark Tank, TikTok invites collaboration, guarantees no “shark tank effect”
Shark Binh, one of the 3 “sharks” collaborating with startup Slimcase, has had painful experiences with being “ghosted”. According to him, after achieving the goal of boosting sales, some startups will delay the evaluation process to make investors give up on the deal.
Sealing a deal worth nearly 50 billion VND with Aplus Home, Shark Hung denies the “golden age” of Shark Binh: When rice and high-quality grains are scarce, affordable housing will take the lead.
Furthermore, Shark Hung believes that Aplus’s model is addressing the “pain points” of the real estate market and generating cash flow for investors.
Shark Binh showcasing Phuong Oanh’s cooking skills on TV while expressing his views on raising children: “All assets belong to the father, the child will enter life empty-handed!”
According to Shark Binh, scarcity is the father of creativity. Startups are no different, as the lack of money forces them to think outside the box and innovate in order to succeed.
