The Philippine Startup Scene Will Boast Multiple Unicorns by 2025, Says Gobi-Core
The Philippine startup scene is thriving, and the best is yet to come. While the pandemic caused some businesses to close, others were quick to adapt to the new normal to address the many new issues society faces. Throughout the year, startups were bagging sizable funding left and right, resulting in approximately $858 million in total funding for 40 Philippine tech startups. This is according to Gobi-Core PH Fund’s Philippine Startup Ecosystem Report 2021.
A must-read for aspiring startup founders and entrepreneurs who don’t quite know where to start, the report is a thorough introduction to the local startup industry, and Gobi-Core has plenty of insights. The joint-venture partnership between Gobi Partners and Core Capital found that “Now is the golden opportunity to invest in the Philippine tech ecosystem.”
Venture deals were not slowed down by the pandemic. While 2021 was another rough year weathering lockdown, it was also the first year that three Philippine startups bagged series B investments (Kumu, GrowSari, and Great Deals). Kumu also bagged a series C investment just a few months later.
According to Gobi-Core’s report, the tech startup sector has secured a whopping $1.7 billion in the last five years, with $1 billion going to Mynt (GCash) and Voyager Innovations (PayMaya), which are both backed by listed companies. That said, Gobi-Core believes that the momentum has only begun and predicts that the Philippine startups’ total funds raised will reach $2 billion by 2024. The fund also has high hopes that the country will see multiple $1 billion unicorns by 2025.
While reaching unicorn status is the goal of most startups, a “camel-like approach will allow a majority of startups to sustain themselves—and even thrive—in this environment,” said Gobi-Core. “Camels” are a new distinction used to define startups that are resilient, sustainable, adaptable, and cautious. Due to the unpredictable state of the economy, Gobi-Care suggests that camels will outlast unicorns.
“Instead of chasing valuations, the ultimate goal should be creating value,” said the report.
The Gobi-Core report is required reading for all those interested in the Filipino startup ecosystem. You can access the full 50-page report here.