- Vietnam tech startups funding falls 39 percent in first quarter of 2024, totaling $35.7 million
- Vietnam ranks third in Southeast Asia for tech startup funding, behind Singapore and Indonesia
- Early-stage investments drop by 47 percent compared to 2023, with no late-stage funding for three consecutive quarters
- Be Group secures highest funding in Series B round, with AutoTech and EdTech sectors performing well
- Ho Chi Minh City leads in city-wise funding, with CyberAgent Capital, Nextrans, and Vietnam Silicon Valley as top investors
Vietnam Tech Startups Funding Decline in Q1 2024
In the first quarter of 2024, Tracxn reported that Vietnam’s tech startup ecosystem faced a significant decline in funding, with a total of $35.7 million raised to date. This marked a 39 percent decrease from the $58.6 million raised in the same period in 2023. Despite this drop, the global software as a service (SaaS)-based market intelligence platform highlighted a substantial 467 percent increase compared to the $6.3 million raised in the fourth quarter of 2023.
Vietnam Ranks Third in SEA Tech Startup Funding
Vietnam currently holds the third position in terms of funding raised by Southeast Asian (SEA) countries in the first quarter of 2024, following Singapore and Indonesia. This positive shift from the previous quarter showcases Vietnam’s growing prominence in the tech startup landscape. Early-stage investments in Q1 2024 amounted to $31.2 million, a 47 percent reduction from the previous year. Notably, there were no early-stage rounds recorded in the fourth quarter of 2023, indicating a fluctuating investment trend.
Key Players and Sectors in Vietnam’s Tech Landscape
One of the standout performers in the funding arena was Be Group, a versatile app-based aggregator offering booking services for various transportation modes. The company secured $31.2 million in a Series B round, marking the most substantial funding in the sector for Q1 2024. Auto Tech, EdTech, and Enterprise Applications emerged as the top-performing segments in Vietnam’s tech industry during this period. AutoTech and EdTech entities, despite receiving no funding in Q4 2023, raised $31.2 million and $2.5 million respectively in Q1 2024.
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Investor Activity and Future Outlook for Vietnam’s Tech Ecosystem
When it comes to investor activity, CyberAgent Capital, Nextrans, and Vietnam Silicon Valley stand out as the most active investors in Vietnam’s tech startup space. Noteworthy seed-stage investors for Q1 2024 include Northstar Ventures, Monk’s Hill Ventures, and R2 Venture Partners. Tracxn expressed optimism about Vietnam’s potential as an emerging startup hub in Southeast Asia, hinting at prospects for further growth in the upcoming years.
While Vietnam’s tech startup funding experienced a decline in the first quarter of 2024, the resilience and innovation displayed by key players in the ecosystem suggest a promising trajectory for the sector. As the landscape continues to evolve, strategic investments and a focus on emerging segments could pave the way for sustained growth and development within Vietnam’s tech industry.
Links to additional Resources: 1. https://www.tracxn.com/ 2. https://www.vietnamtech.org/ 3. https://www.techinasia.com/