TLDR:
– In 2023, venture capital raised by Philippine startups fell below $1 billion for the first time in two years.
– Despite the dip, the country still attracted a larger share of capital compared to other Southeast Asian economies.
The amount raised by local business ventures in 2023 was $956 million, lower than the previous years of $1.11 billion and $1.03 billion. This decline was attributed to inflationary pressures and a cautious approach by investors. However, it was noted that 2023 still marked the third highest fundraising year for startups in the Philippines.
In Southeast Asia, the overall deal value saw a 62% decline, with Indonesia and Singapore experiencing the largest drops. Despite the decrease in total deal value, the number of deals increased to 96, showcasing sustained interest in Philippine startups. The financial technology sector received the largest number of venture capital deals, followed by business-to-business, software-as-a-service, and e-commerce sectors.
Looking ahead, it was mentioned that there may not be adjustments to interest rates in the first half of the year, but once they decrease, private equity firms may leverage their deals more effectively. Overall, while there was a slight dip in capital-raising in 2023, the trend for Philippine startups is still considered ‘bullish’.
