Funding halves for Vietnamese tech startups in first half of 2024

The report released on June 25 revealed that Vietnam tech startups garnered seed-stage funding worth $5.2 million in the first half of 2024, representing a 29 per cent drop from $7.4 million in the second half of 2023 and a 23.5 per cent decline from $6.8 million in the first half of 2023.

Early-stage investments stood at $41.3 million, a 41 per cent decrease from the $70 million raised in the latter half of 2023 and a 53.4 per cent drop from $88.6 million in the first half of 2023.

Furthermore, there was no funding for late-stage startups in the first half of 2024, mirroring the trend from the second half of 2023, whereas $3 million was raised in the first six months of 2023.

‍Ho Chi Minh City led the funding space, followed by Hanoi, showcasing the regional distribution of investment within Vietnam. Tech startups based in Ho Chi Minh City raised $36.3 million in the first half of 2024, while those based in Hanoi raised $7.7 million.

Sector-wise, transportation and logistics tech, edtech, and retail emerged as the top-performing sectors in the first half of 2024, highlighting strategic growth areas despite the overall funding decline. Companies in the transportation and logistics tech sector witnessed a huge spike of 940 per cent in funding, from $3 million in the first half of 2023 to $31.2 million in the first six months of 2024. The edtech segment, too, recorded a 280% surge in funding, from $2.5 million in the first half of 2023 to $9.52 million in the first half of 2024.

‍However, no new unicorns were created in the first half of 2024, continuing a similar trend in the previous period. The M&A landscape also saw a contraction, with only two acquisitions in the first half of 2024 compared to three in the first half of 2023. Notably, RHB Vietnam Securities was acquired by Public Bank for $15.2 million, marking the highest-valued acquisition in the period, following the Home Credit Vietnam buyout by SCBX.

‍Investment activity in Vietnam's tech ecosystem was driven by key players such as CyberAgent Capital, Insignia Ventures Partners, and Genesia Ventures, who remained the top investors overall. Northstar Ventures, Ansible Ventures, and Monk's Hill Ventures also stood out as significant contributors to the investment landscape in H1/2024.

‍Despite the funding challenges, Vietnam's tech startup ecosystem continues to exhibit resilience, driven by strong performances in key sectors and strategic regional investments.

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