By Beatriz Marie D. Cruz, Reporter
PHILIPPINE startups secured $86.4 million in equity funding in the first half of 2025, down 55% from a year earlier and lagging most of its Southeast Asian neighbors, according to a report by Kickstart Ventures, Inc., the corporate venture capital arm of Globe Telecom, Inc., and Singapore-based business news platform DealStreetAsia.
The Philippines raised about P4.91 billion from 15 disclosed deals in the six-month period, lower than the P10.86 billion ($191 million) recorded in the same period last year.
By deal value, the country trailed Singapore ($1.21 billion), Vietnam ($275 million), and Malaysia ($196 million).
It only surpassed Indonesia ($78 million) and Thailand ($10 million), while Cambodia did not disclose figures.
Across Southeast Asia, startup equity investment fell by 20.7% year on year to $1.85 billion, the lowest in six years.
Joan Yao, general partner at Kickstart Ventures, said funding deals slowed after digital activity peaked in 2021 and 2022 at the height of coronavirus lockdowns.
“I think to some extent, as the effects of COVID died down… [digital] activity became more balanced between online and offline,” Ms. Yao said during a media briefing on Wednesday.
Philippine startups had raised $456 million and $481 million in the first halves of 2021 and 2022, respectively, before declining sharply as global investors scaled back.
Ms. Yao cited the tight monetary policy in the United States, when the US Federal Reserve hiked interest rates from March 2022 through July 2023 to curb inflation.
“A lot of the global investors that were coming to invest in the Philippine market or Southeast Asia pulled back a little bit from their investment activities because of the higher cost of capital,” she said.
The report said investors have become more selective, favoring companies with stronger governance and clearer paths to profitability.
The financial technology (fintech) sector accounted for the largest share of deals at 49.1%, led by neobank Salmon Group Ltd., which raised $28 million — the biggest equity deal in the Philippines during the period.
Other sectors that attracted funding included human resources technology (20.8%), food and beverage (20.6%), healthcare (8.1%), and electronic commerce (1.4%).
Most of the deals were in their early stages, totaling $86 million, while no late-stage transactions were recorded during the period.
Despite the slowdown, Kickstart said the Philippine startup sector remains supported by a growing middle class, young and digital-savvy consumers, and rising household spending.
“Philippine consumers are looking for new goods and services that cater to their evolving tastes and this is a good opportunity for many startups,” Ms. Yao said.
Opportunities for investment include addressing challenges in financial inclusion, healthcare, and climate resilience, she added.