Startups here in the Philippines secured $86.4 million in equity funding during the first half of this year which translates to a very sharp drop of 55% when compared to a year earlier, according to a news report by BusinessWorld.
To put things in perspective, posted below is an excerpt from the BusinessWorld news report. Some parts in boldface…
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.
Let me end this post by asking you readers: What is your reaction to the recent developments? Were you surprised to see the Philippines’ startups attracting much less equity funding from global investors? What do you think the government should do to convince global investors to invest more in startups here in the Philippines?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
+++++
Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco
Author Carlo Carrasco 