Foxmont Secures $30 Million To Double Assets In Third Fund
Manila-based venture capital firm Foxmont Capital Partners has announced that it has secured its first close of a third fund, raising $30 million or P1.7 billion.
The company has backed thriving local businesses such as cosmetic brand Colourette, Pickup Coffee, Solx, and Nibertex. With the new funding secured, this is expected to double the venture capital player’s assets under management to expand its growth-stage funding options.
“The math is compelling — consumer growth outpaces capital inflows, creating perfect conditions for venture returns. And Fund III’s growth-stage extension allows us to offer a full-stack capital solution to founders,” Foxmont Capital Managing Partner Jelmer Ikink said in a statement.
One of the global players that helped anchor the first close was the Dutch Good Growth Fund via a technical assistance facility that would provide grants to entrepreneurs.
More than half of the capital in the funding round was raised from local Philippine family offices, which Foxmont said shows a deep and growing domestic confidence in the startup environment.
"This proves Filipino founders can build world-class companies," said Managing Partner Franco Varona. "When we started, nobody was sure how the ecosystem would evolve. Today, our startups attract global investors, and moved from proving they can succeed domestically to showing they can dominate regionally and globally.”
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Since Foxmont’s inception in 2018, local funding for startups and small businesses has increased two percent to 19 percent of the total in Southeast Asia.
Kenneth Albolote, Foxmont Capital general partner and a former Baring Private Equity Asia executive, cited potential in local startup and venture capital funding in the Philippine business environment.
“The Philippines commanded 13 percent of Southeast Asia funding over the last three years, yet represents 20 percent of the region's population,” he said. “This asymmetry creates the most compelling capital allocation thesis in the Association of Southeast Asian today.”
Based on a report by Foxmont Capital and Boston Consulting, dealmaking activity in Manila reached record levels last year despite mostly quiet and subdued sentiment within the startup industry.
Total funds raised last year ballooned to $1.12 billion, which was an uptick of 16.6 percent compared to last year’s $960 million and just slightly on top of 2022’s $1.11 billion.
A separate report by Foxmont Capital Partners and BCG showed that the Philippines continues to be a hub for startup growth, posting about $1 billion in funding for startups each year in the past two years.
Foxmont Capital’s portfolio since its founding has generated more than 6,500 jobs. Most of the founders under the firm’s backing are first time founders, while about half of founders are women.
“With its local presence and first-mover advantage, the firm continues to achieve top-quartile returns and is positioned to capitalize on the growing private capital landscape in the Philippines,” according to the company.
