Vietnamese tech startups raised $120 million in funding in 2024, representing a 38 percent decline from the $196 million secured in 2023 and a sharp 77 percent drop compared to the $518 million raised in 2022, Tracxn said Tuesday.
The global software as a service (SaaS)-based market intelligence platform said in its Vietnam “Tech Annual Report 2024” that late-stage investments in the country saw funding of $14.2 million in 2024, resuming activity after 2021.
Vietnam is the 51st highest funded country in 2024 ahead of Iceland and Luxembourg at positions 52nd and 53rd respectively. The top funded countries in this period are the United States, United Kingdom and China.
In the second half of 2024, Vietnam Tech received $53.6 million funding which is 19.63 percent lower than $66.7 million in the first half of 2024, and is 41.68 percent drop when compared to $91.9 million raised in the second half of 2023.
In the fourth quarter of 2024, Vietnam Tech received $35.1 million that is an increase of 89.73 percent when compared to $18.5 million in the third quarter of 2024 and 68.75 percent rise when compared to $20.8 million in the fourth quarter of 2023.
According to the report, seed-stage investments dropped by 32.37 percent, falling to $11.7 million in 2024 from $17.3 million in 2023.
Early-stage funding, on the other hand, experienced a 47.26 percent decline, totaling $94.4 million in 2024, down from $179 million in 2023.
In terms of sectoral performance, gig economy, auto tech, and transportation and logistics Tech were the top-performing sectors in 2024 in this space.
Gig economy saw a total funding of $38.2 million in 2024, which is a jump of 3715 percent when compared to $1 million raised in 2023 and a rise of 381 percent when compared to $7.9 million raised in 2022.
Auto tech sector saw a total funding of $35.3 million in 2024, which is a soar of 1078 percent when compared to $3 million raised in 2023 and a rise of 116 percent when compared to $16.4 million raised in 2022.
Transportation and logistics tech sector saw a total funding of $34.3 million in 2024, which is a surge of 1045 percent when compared to $3 million raised in 2023 and a rise of 58 percent when compared to $21.8 million raised in 2022.
It is noted that Ho Chi Minh City-based tech firms accounted for 56.59 percent of all funding raised by Vietnamese tech companies.
Hanoi followed behind, contributing 26.25 percent of the total funding.
According to the report, there were no $100 million+ funding rounds in 2024 or 2023.
No Vietnamese tech company went public in 2024, and the ecosystem saw no new unicorns emerging in 2024.
CyberAgent Capital, 500 Global and Genesia Ventures emerged as the top investors in the Vietnamese tech ecosystem, actively supporting startups across various stages.
Meanwhile, the Vietnamese tech ecosystem recorded three acquisitions in 2024, down from four in 2023.
RHB Vietnam Securities’s acquisition by Public Bank for $15.2 million, VinBrain’s acquisition by NVIDIA and Home Credit Vietnam’s acquisition by SCBX are the three acquisitions that occurred in 2024.
RHB Vietnam Securities was acquired by Public Bank at a price of $15.2 million. This becomes the highest valued acquisition in 2024 after the acquisition of VinBrain by NVIDIA.
CyberAgent Capital, 500 Global and Genesia Ventures were the overall top investors in Vietnam Tech ecosystem.
Antler, Monk’s Hill Ventures and Techstars were the top seed-stage investors in Vietnam Tech ecosystem for 2024.
Vertex Ventures, Mitsubishi UFJ Capital and Inspire were the top early-stage investors in Vietnam tech ecosystem for 2024.
Among venture capitals, United States based Wavemaker Partners led the most number of investments in 2024 with 15 rounds, while United Kingdom based fund Northstar Ventures added 8 new companies to its portfolio.
“This data underscores the evolving dynamics of the Vietnamese tech ecosystem, reflecting both growth opportunities and challenges across different funding stages, sectors, and regions,” said Tracxn.
Tracxn: Southeast Asia’s tech funding drops 59 pct on year to $2.84B in 2024