Venture Debt - Vietnam | Statista Market Forecast

The country in Vietnam is projected to see the Total Capital Raised in the Venture Debt market market reach US$6.42m in 2025.
Traditional Venture Debt is set to dominate the market with a projected market volume of US$6.23m in 2025.
When compared globally, the United States will lead in Capital Raised, with US$27.8bn in 2025.
Vietnam's Venture Debt market is gaining traction among startups seeking non-dilutive financing options for growth and expansion.

Definition:

The Venture Debt market refers to a form of equity and debt financing combination, which is used to finance early stage and growth stage capital-backed companies. Besides equity funding rounds, business can seek venture debt that minimizes ownership dilution and governance requirements to increase the cash runway to reach the next milestone or even provide a cushion for delays.

Structure:

The market consists of two segments:
- The Traditional Venture Debt market refers to a form of debt financing that is often provided to venture-backed companies to either buy new equipment, meet a deficiency of short-term capital, or support expansion plans.
- The Growth Venture Debt market refers to a form of debt financing that is often structured with warrants or options, which provides a rapid development stage in which businesses can support their long-term oriented growth plans.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Key players in this market are companies such as Wells Fargo and Hercules Capital.

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Venture Capital
Venture Debt funds are sponsors by governments

Traditional Capital Raising: market data & analysis

The Venture Debt market within the Traditional Capital Raising Market in Vietnam is currently facing a moderate decline, influenced by factors such as evolving investor sentiment, tightening credit conditions, and increased competition from alternative financing options.

Customer preferences: Investors in Vietnam's Venture Debt market are increasingly favoring startups that emphasize sustainability and social impact, reflecting a growing awareness of environmental issues among the younger demographic. This shift is coupled with a rise in tech-savvy entrepreneurs who prioritize innovative business models that address local challenges. Additionally, as the middle class expands, there is a heightened demand for flexible financing solutions that align with the fast-paced growth of the digital economy, influencing investor strategies and preferences within the traditional capital raising landscape.

Trends in the market: In Vietnam, the Venture Debt market is experiencing a notable shift towards supporting startups that prioritize sustainability and social impact, driven by a younger demographic that values environmental responsibility. This trend is complemented by an influx of tech-savvy entrepreneurs who are developing innovative solutions to address local challenges. As the middle class continues to grow, there is an increasing demand for flexible financing options that cater to the rapid evolution of the digital economy. This evolution is reshaping investor strategies, emphasizing the importance of aligning financial support with sustainable growth and technological advancement, thereby impacting industry stakeholders significantly.

Local special circumstances: In Vietnam, the Venture Debt market is uniquely influenced by its rapid urbanization and a youthful population eager for innovation. The cultural emphasis on community and social responsibility drives entrepreneurs to create businesses focused on sustainability and local impact. Additionally, the Vietnamese government has implemented supportive regulatory frameworks to encourage foreign investment and startup growth. This combination of social values, demographic trends, and favorable policies fosters a vibrant ecosystem where venture debt can thrive, aligning financing with the needs of modern startups.

Underlying macroeconomic factors: The Venture Debt market in Vietnam is significantly shaped by macroeconomic factors such as robust GDP growth, a rising middle class, and increasing foreign direct investment. The government’s pro-business fiscal policies, including tax incentives and streamlined business registration processes, further stimulate entrepreneurial activity. Additionally, the global shift towards digitalization and sustainable practices creates opportunities for startups focused on innovation and social responsibility. As access to financial resources improves, driven by a growing ecosystem of venture capital and supportive regulations, the venture debt market is poised for expansion, aligning with the dynamic needs of Vietnam's evolving economy.

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.

This report presents a comprehensive analysis and additional information on the Finance market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.

Venture Debt - Vietnam

Capital Raised

Average Deal Size

Global Comparison

Number of Deals

Analyst Opinion

Methodology

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