Conquering the Funding Winter: A Pivotal Phase for Startup Progression

Tuesday, 15/11/2022 09:00 (GTM +7)

The global market saw capital-raising deals worth millions: 2021 market trends continue into Q1 2022 despite the Covid-19 situation. However, inflation and recession caused startup investment capital to decline. Q2 2022 saw several startups cease operations due to insufficient capital. Experts warn of a “funding winter” lasting at least two years, urging startups to prioritize self-reliance over external venture capital.

ITI Fund_Mùa đông gọi vốn_Startup hợp tác The “funding winter” gives an opportunity for startups to prioritize internal management

VinaCapital Ventures views the challenging fundraising period as necessary for startups to enhance internal management efficiency. Additionally, this presents an opportunity for investment funds, domestic enterprises, and corporations to invest in Vietnamese startups.

Over the last decade, the Vietnamese startup community has experienced significant growth in quantity (over 3,800 startups in 2021) and quality (4 startups valued at over 1 billion USD, attracting over 1.4 billion USD in investment). This has contributed to the economy through digital transformation, addressing key issues and improving the efficiency of logistics, healthcare, education, finance, banking, and retail industries.

The favourable response of large corporations and enterprises to quantitative transformation has spurred investment in innovation, creating opportunities for technology startups to address outstanding issues.

With a population of nearly 100 million, Vietnam boasts high levels of education, urbanization (37%), and per capita income growth. With fast internet speeds and a high percentage of smartphone users, Vietnam is becoming an increasingly attractive destination for investors.

ITI Fund_Tiềm năng tăng trưởng của Việt Nam_Mùa đông gọi vốn Vietnam is a promising market with numerous advantages

The Vietnamese government is committed to supporting economic growth, with a goal of contributing 30% to GDP. The country is also investing in technical infrastructure and human resources to prepare for foreign investment. This makes Vietnam an attractive destination for investors after the “funding winter” period.

Source: CafeF