Vietnam’s venture capital (VC) market has yet to show signs of recovery in 2025, according to the “Vietnam Tech & Venture Capital Outlook 2025” report by VinVentures.
The number of deals fell to approximately 41, while total capital reached only about $215 million, continuing the downward trend since the "cheap money" era of 2021.
Notably, however, capital flows are becoming increasingly concentrated and selective. The majority of resources are being funneled into later-stage funding rounds, typically ranging from $5 million to $10 million. This indicates a growing preference among funds to invest in companies with proven market traction and clearly defined business models.
This approach closely mirrors private equity (PE) strategies, with a focus on sectors capable of generating cash flow and offering higher certainty, such as EdTech, Climate Tech, and Retail/E-commerce.
VinVentures noted that the VC market is witnessing a "contraction" as funds move to protect their existing portfolios. Approximately 60% of capital resources are being allocated to follow-on rounds and bridge financing for existing portfolio companies rather than exploring new deals. This defensive strategy highlights that the top priority for investors right now is maintaining their positions and mitigating risk, amid an uncertain outlook for exits.
Naturally, this trend has led to a continued decline in micro-sized investments.
The deal structure shows a significant shift: transactions valued between $1 million and $5 million rose from 21% to 43%, while small-scale investments dropped sharply.
In a climate of high startup failure rates, only about 29.5% of startups successfully raised capital in 2025, and 70% of those were already revenue-generating. The ability to demonstrate market traction has become a prerequisite for accessing capital.
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