Vietnamese Start-ups Secure $413 Million in Funding for Q2 2022

According to DealStreetAsia, Vietnamese start-up companies secured a combined funding of $413 million in the second quarter of this year. However, start-up fundraising across key markets in Asia, including Southeast Asia, India, and China, experienced a decline compared to the same period last year. Southeast Asia saw the most significant drop in funding, with a decline of 58.6%. Start-ups in the region raised $2.13 billion in Q2, compared to $5.13 billion in the corresponding quarter of 2022.

Among Southeast Asian countries, Vietnamese start-ups raised the second-highest amount of funding, with Singaporean companies surpassing this figure by raising $1.24 billion in the three-month period. Indonesian start-ups lagged behind Vietnam, accumulating a total equity funding of $327 million. Gary P. Khoeng, a partner at Vertex Ventures Southeast Asia & India, expressed caution due to macroeconomic challenges and cautious investor behavior, which have been prevalent since 2022.

Seed-stage funding in Southeast Asia is also showing signs of decline. In Q2, only 52 start-ups in the region secured seed funding, reflecting a sequential drop of 29.7% and a year-on-year decrease of 45%. This trend raises concerns as seed funding plays a vital role in helping start-ups cover essential expenses like product development, recruitment, marketing, and early-stage operations.

Achieving higher levels of capital for the entirety of 2023 compared to 2022 is proving to be challenging for start-ups in Southeast Asia. Fundraising in the first half of 2023 reached only 44% of the levels recorded during the same period last year. Southeast Asian start-ups amassed a total of $4.2 billion in the first half, down 56% year on year and less than the fundraising in Q1 2022. This suggests that Southeast Asian start-ups may struggle to make up for the shortfall in the second half of 2023.