Venture Capital - Myanmar

  • Myanmar
  • The country of Myanmar is projected to see the Total Capital Raised in the Venture Capital market market reach US$213.8m in 2024.
  • Early Stage dominates the market with a projected market volume of US$102.7m in 2024.
  • In global comparison, most Capital Raised will be generated the United States (US$264,500.0m in 2024).
  • Myanmar's Venture Capital market is gaining traction, attracting investors looking to tap into the country's emerging startup scene.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

 
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Analyst Opinion

The Venture Capital market in Myanmar has been experiencing significant growth in recent years.

Customer preferences:
Investors in Myanmar are increasingly turning to venture capital as a means of funding startups and emerging companies. This is driven by a desire to support the growth of the local economy and tap into the potential of the country's young and dynamic population. Additionally, venture capital offers investors the opportunity to diversify their portfolios and potentially earn high returns on investment.

Trends in the market:
One of the key trends in the Venture Capital market in Myanmar is the focus on technology and innovation. The country has seen a surge in tech startups, particularly in sectors such as e-commerce, fintech, and healthtech. This has attracted the attention of venture capitalists who see the potential for high growth and returns in these sectors. As a result, there has been an increase in funding for tech startups, as well as a growing number of venture capital firms specializing in technology investments. Another trend in the market is the rise of impact investing. Investors in Myanmar are increasingly looking for opportunities to make a positive social and environmental impact through their investments. This has led to a growing interest in startups and companies that are addressing social and environmental challenges in the country, such as access to healthcare, education, and clean energy. Venture capital firms are responding to this trend by actively seeking out impact-focused investments and incorporating environmental, social, and governance (ESG) factors into their investment decisions.

Local special circumstances:
Myanmar's transition to democracy and the opening up of its economy have created a favorable environment for venture capital. The government has implemented a range of reforms to attract foreign investment and support the growth of the startup ecosystem. This includes the establishment of a regulatory framework for venture capital, the introduction of tax incentives for investors, and the development of incubators and accelerators to support early-stage startups. Furthermore, Myanmar's young and tech-savvy population presents a unique opportunity for venture capitalists. With a median age of just 29 years old, the country has a large pool of talent and entrepreneurial spirit. This, combined with increasing internet penetration and smartphone adoption, has created a fertile ground for the growth of tech startups and the venture capital market.

Underlying macroeconomic factors:
The Venture Capital market in Myanmar is also influenced by macroeconomic factors. The country has experienced strong economic growth in recent years, driven by sectors such as manufacturing, construction, and services. This has created a growing middle class with disposable income and an appetite for new products and services. Venture capitalists are keen to tap into this consumer market and invest in companies that can cater to the needs and preferences of the emerging middle class. Additionally, Myanmar's strategic location in Southeast Asia and its membership in regional economic blocs such as ASEAN provide access to a larger market and potential for cross-border investments. This has attracted the interest of international venture capital firms looking to expand their presence in the region and capitalize on Myanmar's growth potential. In conclusion, the Venture Capital market in Myanmar is experiencing significant growth driven by customer preferences for technology and impact investing, as well as favorable local circumstances and underlying macroeconomic factors. As the country continues to open up its economy and attract foreign investment, the venture capital market is expected to further expand and contribute to the development of Myanmar's startup ecosystem and economy.

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.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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