Market Insights Financial Capital Raising Traditional Capital Raising

Venture Debt - Vietnam

Vietnam

The country in Vietnam is projected to see the Total Capital Raised in the Venture Debt market market reach US$266.3m in 2024.
Traditional Venture Debt is set to dominate the market with a projected market volume of US$255.6m in 2024.
When compared globally, the United States will lead in Capital Raised, with US$31,850.0m in 2024.
Vietnam's Venture Debt market is gaining traction among startups seeking non-dilutive financing options for growth and expansion.

Key regions: India, United Kingdom, China, Europe, Israel

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Analyst Opinion

The Venture Debt market in Vietnam has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Vietnam have been shifting towards alternative financing options, such as Venture Debt, due to the increasing number of startups and small businesses in the country.

Entrepreneurs are looking for flexible and non-dilutive financing solutions to fuel their growth and expansion plans. Venture Debt offers a viable option for these companies to access capital without giving up equity. Trends in the market also contribute to the development of the Venture Debt market in Vietnam.

The country has witnessed a surge in startup activities, particularly in the technology sector. These startups often require additional funding to support their operations and scale their businesses. Venture Debt provides an attractive alternative to traditional bank loans or equity financing, as it allows startups to access capital quickly and with less stringent requirements.

Local special circumstances in Vietnam, such as the lack of access to traditional financing options for startups and small businesses, have further fueled the growth of the Venture Debt market. Banks in Vietnam often have strict lending criteria and may be hesitant to provide loans to early-stage companies with limited operating history. Venture Debt fills this financing gap and provides startups with the necessary capital to fund their growth and innovation.

Underlying macroeconomic factors also play a role in the development of the Venture Debt market in Vietnam. The country has been experiencing strong economic growth, which has led to an increase in entrepreneurial activities and the emergence of new startups. Additionally, the government has been actively promoting entrepreneurship and innovation through various initiatives and policies, creating a conducive environment for the growth of the Venture Debt market.

In conclusion, the Venture Debt market in Vietnam is experiencing significant growth due to customer preferences for alternative financing options, trends in the market driven by the increasing number of startups, local special circumstances such as limited access to traditional financing options, and underlying macroeconomic factors including strong economic growth and government support for entrepreneurship. This market is expected to continue to expand as more startups and small businesses seek flexible and non-dilutive financing solutions to support their growth and expansion plans.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.