Philippine Startups Raise Over $1 Billion For the Second Year in a Row, According to Foxmont's Venture Capital Report 2023
Foxmont Capital Partners has released its Philippine Venture Capital Report for 2023, and based on its findings, the Philippine startup ecosystem is thriving. According to the report, which was launched at Esquire Philippines and Sinigang Valley's BUILD: A Startup Festival, the Philippines raised a whopping $1.1 billion in startup funding in 2022, exceeding 2021’s fundraising total of $1.03 billion. This marks the second year in a row that Philippine startups were able to raise over $1 billion. Compared to the $40 million raised in 2010 when the startup scene was in its infancy, the ecosystem’s total deal value per year has experienced 27x growth in just 12 years.
Read the Foxmont Capital Partners’ Philippine Venture Capital Report 2023 here.
The global economy might have taken a hit in 2022, but it’s clear the Philippine startup ecosystem managed to stay resilient. Where global venture capital investments shrunk by 37 percent in 2022, the Philippines grew by seven percent from the year prior. Foxmont’s report also revealed that as of March 2023, the Philippines has locked down 17 investments in Q1, and that number is expected to jump to 23 before the quarter ends.
“Investments below $5 million still remain to have the biggest share in terms of number of deals, emphasizing that the Philippine market is agile and fresh with new ideas and startups,” the report said. “On the other hand, there has been a tremendous growth in later stage investments, reflecting the overall maturing state of the Philippine startup ecosystem.”
The Philippines’ Southeast Asian neighbors have often outshone the Philippines when it comes to startups, but as the local ecosystem grows, so does the interest of investors. According to Foxmont, “the Philippines is a large, attractive market that is ripe for investments.”
“Philippine deal activity in recent years has started catching up with regional peers, especially in growth deals. Until recently, larger deals have been relatively underrepresented in the Philippines, with growth deals in 2021 being <50% of Indonesian deal flow,” stated Foxmont in the report. “However… deals are getting larger, proving that the Philippines startup ecosystem is developing to more mature companies.”
The comprehensive report also includes insights from major players in the ecosystem like Kickstart Ventures and Openspace, as well as a breakdown of the sari-sari store’s unique role in the Philippine startup scene.
Read the Foxmont Capital Partners’ Philippine Venture Capital Report 2023 here.
