Report: Despite Muted Investment Climate, Deals Actually Reached Record High in 2024

Dealmaking activity in the Philippines reached record levels in 2024 despite the generally quiet and subdued sentiment within the startup industry, this year’s Venture Capital Report by Foxmont Capital Ventures and Boston Consulting Group, released on Tuesday (March 25), revealed. Total funds raised ballooned to $1.12 billion last year, up 16.6 percent versus the previous year’s $960 million and just slightly ahead of 2022, which was the previous record holder at $1.11 billion.

“While 2023 saw an increase in smaller-ticket deals that drove overall deal volume, 2024 had a larger share of growth-stage investments alongside steady deal flow across all quarters,” the report said.

“I think investors are looking at companies that have proven track records,” Varona told Esquire Philippines during the launch of the VC report at this year’s BUILD Startup Festival. “That’s the sweet spot. Of course, at Foxmont, we’re still looking at early-stage startups also. It’s the middle ground that investors are a little apprehensive about.”

Indeed, data show that while deals valued between $1 million to $5 million increased more than 30 percent, those worth from $10 million to $20 million dipped to less than five percent. However, those between $21 million to $50 million as well as those above $50 million surged to around 10 percent. 

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“The relative lack of investors in this range could be an opportunity for investors wanting to position themselves as key stepping stones to later stage rounds,” the report said. 

Notable fundraising activities last year include Lhoopa’s $80 million Series B round, which was one of the biggest in Southeast Asia last year and one of the biggest in the Philippines ever; and a pre-Series B close worth $9 million for ecommerce logistics company Locad.

Sectors that saw an increase in funding deals include Fintech, Cleantech, Logistics, Direct-to-consumer, AI, Healthtech, PropertyTech, Retail, Insurtech, and HRTech. Meanwhile, those that saw dips include ecommerce, B2B SaaS, EdTech, F&BTech, Agritech, and Media and Entertainment.

Meanwhile, the report also noted the continued increase in the share of VC funds raised by Philippine companies in relation to the total across Southeast Asia, with 19 percent this year, up from just 13 percent last year and just five percent in 2021.

A quick scan of the country’s investment landscape also reveals the ideal conditions that seem to contribute to increase the attractiveness of the Philippines to investors. For example, in 2024, the Philippines recorded a 20 percent spike in the gross merchandise volume (GMV) of the digital economy, the highest among the six biggest economies in Southeast Asia. There are also 99.8 million internet users in the country, up from last year’s 870 million and bumping up the internet penetration rate to nearly 84 percent of the population.

In addition, 91.3 percent of the Philippine population regularly use financial services (online banking, investment or insurance monthly). Compare that to the worldwide average which just 37.8 percent.

“In a few years, the Philippines will become a cashless society,” Foxmont’s Franco Varona said during the presentation of the report at this year’s BUILD Startup Festival.

Interestingly, the Philippines has also become the fifth largest market on TikTok Shop last year, with around $3.1 billion in GMV and 116 percent year-on-year growth. Meanwhile, the share of digital payments broke the 50 percent line for both value (55.3 percent) and volume (52.8 percent) in 2023. There’s no doubt those number would have only gone up in 2024.

The 2025 Venture Capital Report from Foxmont Capital Partners and Boston Consulting Group was released during the annual BUILD Startup Festival, organized by Sinigang Valley Association and supported by Esquire Philippines. Download the full report here.