Venture Capital - Cambodia

Cambodia

Highlights

The country in Cambodia is expected to see the Total Capital Raised in the Venture Capital market market reach US$110.50m by 2024.
In the same year, the Early Stage is anticipated to dominate the market with a projected market volume of US$50.15m.
When compared globally, the United States is set to generate the most Capital Raised, amounting to US$136.6bn in 2024.
Cambodia's Venture Capital market is gaining traction, with a growing number of local startups attracting investment from both domestic and international investors.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Cambodia is experiencing rapid growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Cambodian customers are increasingly interested in investing in startups and innovative businesses. They are attracted to the potential high returns that can be achieved through venture capital investments. Additionally, many customers are looking to diversify their investment portfolios and see venture capital as an opportunity to invest in high-growth sectors such as technology, e-commerce, and renewable energy.

Trends in the market: One of the key trends in the Venture Capital market in Cambodia is the increasing number of local and international venture capital firms entering the market. These firms are attracted to the country's growing startup ecosystem and the potential for high returns on investment. As a result, there is a greater availability of capital for startups and a more competitive landscape for entrepreneurs seeking funding. Another trend is the focus on impact investing. Many venture capital firms in Cambodia are prioritizing investments in businesses that have a positive social or environmental impact. This trend is driven by both investor demand for socially responsible investments and the government's push for sustainable development in the country.

Local special circumstances: Cambodia's young and dynamic population is a special circumstance that contributes to the growth of the Venture Capital market. With a median age of around 25 years old, there is a large pool of talented and ambitious entrepreneurs who are driving innovation and attracting investment. Additionally, the government has implemented policies and initiatives to support entrepreneurship and the startup ecosystem, creating a favorable environment for venture capital investment.

Underlying macroeconomic factors: The strong economic growth in Cambodia is a key underlying factor driving the development of the Venture Capital market. The country has experienced robust GDP growth in recent years, which has created a growing middle class with disposable income to invest. Additionally, Cambodia's strategic location in Southeast Asia and its access to regional markets provide attractive opportunities for startups and investors. Furthermore, the government's efforts to improve infrastructure, promote digitalization, and attract foreign investment are creating an enabling environment for venture capital. These macroeconomic factors contribute to the overall positive outlook for the Venture Capital market in Cambodia. In conclusion, the Venture Capital market in Cambodia is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. With a focus on high-growth sectors, impact investing, and a supportive government, the country is becoming an attractive destination for venture capital investment.

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.