According to the newly released Q1.2021 Vietnam Startup report by Nextrans Vietnam, the total value of investments in Vietnam startups in the first quarter reached more than $100 million. Thus, the total investment value increases by about 34% (YoY), excluding unpublished investments.
Download full report here.
Photo: The total value of investments in Vietnam startups in the first quarter reached more than $100 million (Source: Nextrans)
The number of investment deals in early 2021 decreased by 20% (YoY), reaching only 16 deals. This is quite low compared to 20 deals in 2020 and 30 deals in 2019. However, the value of investments increases. The report emphasizes that international investors are outperforming domestic ones in both quantity and value of investment. The total investment value of domestic investors is less than 10 million USD, while that figure of foreign investors is about 100 million USD.In particular, investments in the "seed" round and Series A also dominate with 70% of the deals, higher than the same period of 2020 and 2019. Fintech startups ranked first with 4 deals out of 16, accounting for 40%. Followed by logistics, accommodation, real estate, education, and health. Experts say that investors are investing mainly in financial technology, e-commerce, online education, enterprise solutions, and logistics.
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Photo: Q1.2021: Investment in Vietnam Startups Increased by 34% (Source: Nextrans) |
Investment funds play an important role in promoting the rapid development of the startup ecosystem in Vietnam. There are nearly 180 investment funds in the country, including big names such as VSV Capital - Vietnam Silicon Valley, Mekong Capital, 500 Startups Vietnam, Vietnam Investment Group, IDG Ventures Vietnam, and Nextrans. Venture capital funds from Japan and Korea are also actively looking for potential startups to invest in.
Along with investment funds from Singapore and Korea, large enterprises in Vietnam are also one of the key sources of investment for the Vietnam startup market. In 2021, large enterprises in Vietnam have started building a startup ecosystem to invest in as well as partnering with merged startups.
Source: Doanh Nghiep Viet Nam Newspaper