The term "Funding Winter" has become increasingly familiar within Vietnam's startup scene, especially under the shadow of climbing interest rates and a tightening economic climate. This period is marked by a critical and careful approach from investors and funds, making capital more elusive for startups.
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The term "Funding Winter" has become increasingly familiar within Vietnam's startup scene, especially under the shadow of climbing interest rates and a tightening economic climate. This period is marked by a critical and careful approach from investors and funds, making capital more elusive for startups.
Even though the last ten years saw a lot of growth and excitement in Vietnam's startup scene, with a big boom in 2021, things have started to slow down in 2022 and 2023. The investment fervor has cooled, leading to a decrease in both the number of deals and the magnitude of investments.
However, a silver lining emerges as experts project a rebound in the startup investment field by the second half of 2024. Vietnam will benefit from more venture capital, especially as companies continue to move their manufacturing out of China due to the ongoing US-China tensions. This period is anticipated to be a crucial moment for startups to take a step back and redefine their strategies.
It's an opportune time to streamline operations, minimize expenses, refine management practices, consolidate resources, and diversify revenue sources. Such strategic adjustments are essential for startups to survive tough times and be ready to jump on new opportunities.
Below are some insights:
How do we maintain momentum and thrive through the "Funding Winter," ensuring our business grows sustainably? Emakase is here to support you every step of the way!
#Emakase #EmUP #EmakaseUP #vietnam #innovation #startup
World Intellectual Property Organization. (2023). Global innovation index 2023: Innovation in the face of uncertainty. WIPO.
