Gobi-Core’s Report Reveals Surge in Philippine Startup Funding and Growth Potential

Gobi-Core Philippine Fund, a venture capital firm dedicated to the Philippines and a part of Gobi Partners, has released a fresh report titled “Philippine Horizons: Filipino Innovation in the ASEAN Landscape.” Developed in partnership with Alibaba Cloud and Eskwelabs, the report delves into the growth and prospects of the Philippine startup ecosystem, while comparing it to other ASEAN markets.

The report reveals a rebound for the Philippine startup sector in 2024, with total investments surpassing US$1 billion, a nearly fourfold increase compared to the previous year. This surge in funding was largely driven by larger, growth-stage investments, particularly within the fintech sector. 

The Philippine startup ecosystem has shown resilience in 2024, surpassing US$1 billion in total funding, nearly four times the amount raised last year. This growth is primarily attributed to a shift toward larger growth-stage investments, particularly in fintech, signaling the sector’s maturation. 

The rise in debt financing also indicates that Philippine startups are increasingly stable and able to handle loans, a departure from the equity funding typically seen in early-stage ventures. This trend suggests that while access to equity funding remains challenging, startups are evolving and scaling toward regional expansion.

Despite these positive developments, the report highlights several challenges that remain. Limited access to capital, regulatory hurdles, and a shortage of skilled talent are key issues impeding the growth of the Philippine startup ecosystem. 

The report emphasizes the urgency for the Philippines to catch up with neighboring ASEAN nations like Vietnam and Thailand, where industries such as AI, semiconductors, and digital infrastructure are flourishing. While Singapore dominates in deep-tech and Malaysia emerges as a semiconductor hub, the Philippines has opportunities to differentiate itself by focusing on AI integration and developing a robust talent pipeline. Leveraging these strengths could enable the Philippines to carve out its own niche in the evolving ASEAN landscape.

In addition to these insights, Gobi-Core has launched the Philippine Startup Database, a community-driven, open-source platform that connects startups with investors, mentors, and other key stakeholders.

These factors, combined with the country’s low competition and a rapidly expanding digital economy, create a fertile ground for startups to scale quickly. Google’s economy SEA 2024 report confirms this growth, showing a 20% increase in the Philippine digital economy’s gross merchandise value this year.

To capitalize on this potential, the Gobi-Core report advocates for comprehensive policy changes, including startup visas, tax incentives, and simplified regulations, to nurture a more inclusive and dynamic ecosystem. It stresses the importance of collaboration across sectors—government, investors, academia, and tech leaders—to drive the growth of the Philippine startup landscape. By uniting stakeholders under the mission of making the Philippines a leading innovation hub, the country can unlock its full tech potential and establish itself as a prominent player in Southeast Asia’s rapidly evolving market.