In the context of the rapidly developing digital economy, Vietnamese startups are facing significant challenges in securing the necessary funding for their growth.
Current Status of Startup Fundraising
Figure 1: Percentage of Startups at Different Fundraising Stages
Data from the report "Current Status and Development Trends of Startups in Vietnam" on fundraising stages reflect a diverse and promising startup market. Nearly half of the startups (45.14%) are in the Pre-seed stage, indicating a strong focus on idea development and research. About 30.56% of startups are in the Seed round, showing an increasing number of startups transitioning from idea preparation to execution. However, only 17.36% of startups reach Series A, with a noticeable decline in numbers when moving from Seed to Series A. This highlights the difficulties startups face in scaling up and securing further investments.
Figure 2: Sources of Capital Raised by Startups
The key challenge for early-stage startups is accessing investors. Data shows that over 50% of startups struggle at this stage. Another major concern is the capability of startups themselves, as 28.10% of startups lack the skills or capacity to effectively convince investors.
On the investor side, transparency in providing information to startups is another issue. Around 13.73% of startups report a lack of adequate information when approaching investment funds. Additionally, 24.18% of startups find it difficult to meet investor requirements due to their limited capabilities and challenges in obtaining necessary information.
Figure 3: Challenges Faced by Startups in Approaching Investors
Startups Seek More Support from Investors
Faced with these obstacles, startups have expressed a strong desire for greater support from investors. One of the most prominent demands is for investors to offer guidance and mentorship throughout the startup’s development journey.
"Startups are eager to receive advice and strategic direction from investors," shared Ms. Nguyễn Thị Thuỳ Trang, General Director of Mekong Food Processing Technology Co., Ltd.
MindX, a tech education startup for all age groups, has diversified its funding sources beyond traditional investment funds like Beacon Fund, securing investments from Thailand’s Aksorn Education Group, Japan’s Mynavi HR Group, and Wavemaker Partners. This demonstrates startups' need for comprehensive support in finance, experience, networking, and distribution channels.
Additionally, startups hope that investors will apply transparent valuation methods recognized by the investment industry, avoiding price suppression. Some startups also call for faster disbursement processes, suggesting that funds should be released within a month. Lengthy disbursement periods of 9–12 months are seen as impractical by many entrepreneurs.
Venture capital and private investment play a crucial role in the growth of startups. Addressing the difficulties in accessing funding and meeting investor expectations will help build a stronger startup ecosystem and drive sustainable growth for Vietnam’s entrepreneurial community.
Ngoc Anh
For more information, please contact:
Ms. Dương Ngọc Ánh – Communications Officer, Office of Project 844, Ministry of Science and Technology
📧 Email: anhdn@most.gov.vn
📞 Phone: +84 966 909 903