Venture financing in Southeast Asia to the moon and back is a “very, very good” opportunity for a new lending platform like Funding Societies to enter the Vietnamese market, said Ryan Galloway – Country Director for Funding Societies in Vietnam.
Kelvin Teo and Ryan Galloway of Funding Societies Vietnam
The stock market crash in the US has consequences for capital markets around the world. This forces companies to look for safer forms of capital, while banks are still hesitant to lend. The same is happening in Vietnam. That’s why it’s a great opportunity for finance companies in this country when startups crave funding to recover after two years under the pandemic, Ryan said.
According to Crunchbase, venture capital funding in the SEA fell to USD 36.3 billion in the first quarter, down 7 percent from the same period last year and 31 percent from the last quarter of 2021.
Last year, a record amount of more than USD 1.3 billion was deposited into Vietnamese startups, placing the country third in the group of the most dynamic innovative startup ecosystems in Southeast Asia, after Indonesia and Singapore. Most of the investment capital has been pumped into startups in fintech, gaming, education, healthcare and e-commerce, according to the Treasury Department.
However, according to Ryan, the USD 58 billion funding gap should be spent on eligible SMEs that may not be used for formal funding. And he describes this number as 24% of total market cap for both the HCMC and Hanoi exchanges, and 21% of Vietnam’s total GDP.
With the aim of providing loans to the unserved and subordinated customers of the banks that are SMEs and SMEs, Funding Societies Vietnam will not compete in the banking sector, as the Country Director emphasized by the strategy in Vietnam. It will actively seek out banks to partner with provincial governments to support growth.
Funding Societies Vietnam Singapore-based digital finance platform provides access to capital for SMEs and SMEs Vietnamese technology firm VNG Corporation recently invested $22.5 million in finance companies. will focus funding on the agricultural, education and manufacturing sectors – the absolute backbone of Vietnam’s economy. Later it becomes a family-owned pop-up shop, restaurants, boba tea bars… The Country Director also informed that Finance Companies Vietnam will enter the provinces in Vietnam along with their e-commerce partners.
