Startups in the Philippines have raised over US$1 billion in funding for the second year in a row despite a global slowdown, a report from Foxmont Capital Partners and Boston Consulting Group found.
Given how worldwide VC investments shrank 35% in 2022, this momentum is quite promising.
The report also notes that there has been an increase in later-stage investments in the country, which signals how its startup ecosystem is maturing. However, investments below US$5 million still dominate.
Many regional funds entered the Philippines last year, such as TNB Aura, Alpha JWC, and January Capital. Existing investors in the country including Openspace also doubled down on their efforts.
The Philippines has also been a hotbed for ecommerce and fintech startups. Funding in these two segments accounted for 23% and 39%, respectively, of the total early-stage funding recorded in 2022.
Overall, local startups have been benefiting from a growing economy, investor-friendly government policies, and digitally obsessed consumers. On average, Filipinos spend about nine hours online.