Hanoi (VNA) – A workshop under the Vietnam-Finland InnovationPartnership Programme Phase 2 (IPP2) was held in Hanoi on August 24 to discuss fundingand finance for creative start-ups.

Sharing experiences from Finland, Marko Saarinen, a representative from the FinnishEmbassy, said that Finland has created platforms for open and transparentexchanges to promote partnerships with stakeholders.

Accordingly, the IPP programme has contributed to supporting policies for smalland medium-sized businesses and start-up ecosystems. IPP currently focuses onbuilding resources for programmes, universities, businesses and entrepreneursin the field of start-up development.

Jouko Ahvenainen, an international expertin the IPP2 programme, said that there are many business models and it is difficultto call for initial capital and gain profit immediately.

There are many new funding models andtechnology to support innovative start-ups, and Vietnam had good opportunitiesto use new technology and models, he said.

There are also various financial supportsources such as personal sponsors, venture capital funds and fund managementcompanies, he added.

However, the financial aid agencies stilllack information, which made it difficult to assess the disbursement, he said.

Moreover, it is difficult for banks todecide on a loan because they do not have enough information about thebusinesses.

“Therefore, the market needs transparentdata sets to reduce risks for investors as risk assessment was important in thedecision-making process," said Ahvenainen.

Phan Hoang Lan, leader of the IPP2 researchgroup, said that the most important characteristics for investment in start-upsare the risk factor and the unpredictability of investment.

Among 10 investment businesses, nine might‘die’ and nobody is able to predict which businesses will succeed, she said.

“Therefore, those who invest in start-upsmust be very understanding about starting a business and having money toinvest,” said Lan.

Therefore, it was necessary to havepolicies to support and share risks for investors including tax and reciprocalinvestment policies, Lan said.

Lan also said start-up supportingorganisations should support businesses at the initial stages and take risks.

Secondly, administrative procedures shouldbe minimised for start-ups.

The IPP2 programme is a development cooperation programmebetween the two governments of Vietnam and Finland, implemented by theVietnamese Ministry of Science and Technology and the Finnish Ministry ofForeign Affairs in the 2014-18 period with a total budget of 11 million EUR (12.7million USD).-VNA