Investment capital in Vietnamese startups could reach a record of 1 billion USD this year
This is a prediction made by Ms. Le Hoang Uyen Vy - CEO of investment fund Do Ventures - at the event Find capital for businesses during the pandemic in the morning of October 14.
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Ms. Le Hoang Uyen Vy - CEO of Do Ventures. Source: Do Ventures.
As a representative of Do Ventures, a domestic investment fund that conducts its annual report on investment in startups in Vietnam, Ms. Le Hoang Uyen Vy gave the figures as the basis for an optimistic view of the 2021.
According to Ms. Vy, 2018 marked the arrival of international and domestic investment funds in Vietnam. This is also the year that recorded a record investment amount of up to 410 million USD out of 60 deals, while the previous years peaked at only 100 million USD.
Following that growth momentum, Vietnam continues to reach new milestones in 2019, with nearly $900 million. Many funds invest in Vietnam market for the first time.
By 2020, due to the COVID-19 epidemic, investment funds could not directly meet startups, causing the investment amount to be halved compared to 2019.
According to Ms. Vy, "it is worth mentioning that the total investment amount halved, but the total number of deals decreased by only 17%. This shows that investors do not come directly but still believe in the development of the Vietnamese economy, so they still invest a small amount of value to keep the place."
Talking about 2021, a representative of Do Ventures cited incomplete statistics about the situation in the first 9 months of the year into the Vietnamese market, which this fund obtained from 100 other investment funds and from the National Innovation Center (Ministry of Planning and Investment), to show that the investment segment in the Vietnamese market has a rapid recovery.
Accordingly, about 600 million USD has been poured into Vietnam - this figure is equivalent to 2019. “The fourth quarter is usually the time to attract the most investment of the year. Although we are not too optimistic, we still believe that 2021 will be a record year for the total amount of investment in the Vietnamese market, possibly surpassing the $1 billion mark.
Vietnam's startup ecosystem is also showing many positive signs of recovery. The average size of deals in 2020 decreased sharply compared to 2019, but by 2021 has recovered to the same or more.
Specifically, the average investment amount in the pre-series A round decreased from $ 400,000 in 2019 to $ 200,000 in 2020, and in 2021 has increased to $ 500,000. The series A round is similar, the average size of about 3 million USD in 2019 decreases to 1.4 million USD in 2020 and increases again to 2 million USD in 2021.
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