Navigating venture capital trends across the continent

Today’s global environment is marked by heightened uncertainty, driven by macroeconomic volatility, record-high US dollar and gold prices, escalating geopolitical tensions, and unpredictable trade policy signals.

- By Vinnie Lauria

For investors, uncertainty is more challenging than a downturn, as unclear market direction often leads them to delay decisions.

As a result, fundraising has become increasingly difficult for startups. Against this backdrop, it is important to identify where opportunities are emerging, how founders can position their businesses amid constrained capital, and what realistic expectations look like in the current investment cycle.

When we speak with startups in Vietnam, conversations often focus on valuations and the scale of capital flows, many of which remain anchored in the post-pandemic boom. During the pandemic, as activity shifted online, digital adoption surged and venture capital and private equity firms invested aggressively.

However, this period has seen a sharp correction. Even companies like Zoom have not regained their pandemic-era momentum, while gaming and entertainment platforms have experienced significant declines in engagement. As a result, a substantial amount of capital in the venture capital and private equity markets was pulled back relatively quickly.

In Southeast Asia, investment levels are now normalising in line with the region’s underlying growth fundamentals, though they remain well below the peak levels of a few years ago. This adjustment has distorted expectations, particularly among some founders and CEOs.

Another trend we are seeing in Vietnam concerns misaligned fundraising assumptions. Some founders believe that incorporating in Delaware and targeting the US market will naturally lead to Silicon Valley investors and US-style valuations. In practice, this is extremely difficult.