Capital

The 20 Biggest Startup Investments Have Collectively Raised Over P24 Billion

Voyager, Edukasyon, and PayMongo are among the top 20.
IMAGE Voyager, Multisys
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The Philippine startup ecosystem is one of the world’s rising stars, ranking 36th in emerging markets by Startup Genome. Metro Manila’s ecosystem alone is valued at a whopping $1.6 billion (P77 billion), and Foxmont Capital Partners estimates that between 2018 to 2020, Philippine startups raised over $547 million (P26 billion) in funds.

Foxmont Capital Partners, a Philippine venture capital fund, reports that 2020 raised $51.8 million (P2.5 billion) in the first half alone, exceeding 2019’s recorded $37.9 million (P1.8 billion). Had the pandemic not happened, 2020 could have surpassed the record-breaking investments worth $110.2 million (P5.3 billion) in 2018.

According to Foxmont, the country’s top six deals account for 80 percent of total funds raised, and most investments are sourced from private equities. All this funding toward Filipino startups shows that investors continue to believe in Filipino innovation.

Launched during Philippine Startup Week 2020, the capital fund’s comprehensive startup report, titled Philippine Capital Venture Report 2020, lists the biggest investments in the last three years for Filipino startups, with Voyager Innovations Inc., which counts PLDT as a major investor, leading the way.

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Here’s where they stand:

Photo by Foxmont Capital Partners.
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In total, the top 20 startup transactions raised over $515 million (P24 billion). Fintech is clearly a frontrunner for investors, occupying nine slots out of 20 on the list and accounting for $417.3 million (P20 billion) of all the funds collectively raised.

Edukasyon.ph and Goodwork.ph also rank, proving that diversity is also in demand among investors. While private equity investments dominate the size of investments, series A funding was most common on the list with five startups, namely First Circle, Black Arrow Express, Sprout Solutions, Kumu, and Right Choice Finance.

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Despite being a pandemic year, a number of deals made in 2020 are among the top 20 investments, starting with Great Deals E-Commerce Corp.’s January 1 deal, followed by Edukasyon in February, Ellana and Inteluck in March, and Kumu and Voyager in April.

The economy may have suffered a setback in 2020, but 96 percent of startup founders interviewed by Foxmont are confident that their businesses will grow again within the next two years, and 73 percent of investors already plan to inject up to $5 million (P240 million) into Filipino startups within the next three years.

With the new normal upon us, it’s only a matter of time before Filipino innovation kicks into high gear and develops even more ideas fit to the new world. And perhaps they’ll break the investment records in 2021. Only time will tell what waits Philippine startups.

To read the Foxmont’s full report, click here.

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Anri Ichimura
Staff Writer, Esquire Philippines
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