Tracxn: Vietnamese Tech Startups Funding Down 38 Percent to $130M in 2024

Vietnam’s tech startup ecosystem experienced a significant decline in funding in 2024, with total investments amounting to $120 million, marking a 38% drop from $196 million in 2023 and a sharp 77% decrease compared to $518 million in 2022. This data was highlighted in Tracxn‘s Vietnam Tech Annual Report 2024, based on the platform’s comprehensive market intelligence database. The report sheds light on the current challenges and opportunities facing Vietnam’s tech sector.

Tracxn, a leading market intelligence platform, has been tracking global startup ecosystems and offering key insights into their trends and dynamics. The 2024 report provides an in-depth analysis of funding activities, sectoral growth, and investment shifts across different stages.

Funding Breakdown

• Late-Stage Funding: After a two-year hiatus, late-stage funding saw a return, recording $14.2 million in 2024.
• Seed-Stage Funding: Seed-stage investments experienced a decline of 32.37%, falling to $11.7 million, down from $17.3 million in 2023.
• Early-Stage Funding: Early-stage funding faced a sharp 47.26% drop, amounting to $94.4 million, down from $179 million in 2023.

Sectoral Performance

Despite the overall funding decline, certain sectors demonstrated strong growth:

• Gig Economy: Funding surged to $38.2 million, a remarkable 38-fold increase compared to 2023.
• Auto Tech: The auto tech sector saw a tenfold rise, raising $35.3 million in 2024 and a 116% increase compared to 2022.
• Transportation and Logistics Tech: This sector also saw impressive growth, garnering $34.3 million, a tenfold jump compared to 2023.

Geographical Insights

In terms of regional performance, Ho Chi Minh City emerged as the dominant hub for tech investments, accounting for 56.59% of all funding raised in 2024. Hanoi followed closely behind with a 26.25% contribution to the total funding. These two cities continue to lead Vietnam’s tech ecosystem, attracting the majority of both local and international investments.

Other Key Trends

• There were no $100 million+ funding rounds or IPOs by Vietnamese tech companies in 2024.
• The ecosystem saw three mergers and acquisitions, down from four in 2023. Key deals included:
  • Public Bank’s acquisition of RHB Vietnam Securities for $15.2 million.
  • NVIDIA’s acquisition of VinBrain.
  • SCBX’s acquisition of Home Credit Vietnam.

Leading Investors

Top investors in the Vietnamese tech space included:

• CyberAgent Capital, 500 Global, and Genesia Ventures, which actively supported startups across various funding stages.
• Antler, Monk’s Hill Ventures, and Techstars led seed-stage investments.
• Vertex Ventures, Mitsubishi UFJ Capital, and Inspire were prominent early-stage investors.

Additionally, global venture capitals like Wavemaker Partners (based in the US) and Northstar Ventures (based in the UK) made significant contributions to Vietnam’s tech ecosystem in 2024.

About Tracxn: Tracxn, founded in 2013, is a leading SaaS-based market intelligence platform that helps investors, corporations, and startups track global startup ecosystems. With its data-driven insights, Tracxn provides valuable analytics across various sectors, helping stakeholders make informed decisions. The platform uses advanced AI and machine learning algorithms to gather data from thousands of sources, offering a comprehensive view of emerging trends, investment activities, and sectoral growth worldwide.