Investment into Vietnamese startups falls in number but rises in value

Tuesday, May 04, 2021 17:25

The number of investments in Vietnamese start-ups in the first quarter of this year fell to 16 from 20 deals in the same period last year and only half of that of 2019 with 30 deals, according to a recent report from venture capital firm Nextrans Viet Nam.

However, the amount of money investors poured into Vietnamese start-ups has increased. The total value of investment start-ups received in the first three months of 2021 grew 34 per cent from the same period last year, reaching about US$150 million, up 50 per cent from $100 million in Q1 last year.

(You say it went up 34 per cent and 50 per cent, which is it? Can't be both. Also please change the photo.)

Nextrans Viet Nam said most of the fundraising deals were still in the seed round and series A, accounting for 69 per cent of total investment deals.

The financial technology segment had the most investor interest, accounting for four deals. The next most popular segments were education, logistics, healthcare, and real estate.

Besides Korean and Singaporean investors, Vietnamese investors were the biggest players in the market.

Statistics showed since the beginning of this year, many Vietnamese investors have poured capital into start-ups, including VNG's $6 million investment in the digital gifting, loyalty and rewards voucher platform Got It on January 15 this year.

In the context of the impact of the long-lasting COVID-19 pandemic, raising capital has become more difficult and is one of the major challenges of startups in Viet Nam and around the world.

Therefore, although the results of capital mobilisation in Viet Nam were still modest, they also showed positive signals that could not be ignored. — VNS

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