The Philippine startup ecosystem is thriving, according to the Philippine Venture Capital Report 2023 released by Foxmont Capital Partners and Boston Consulting Group. Data from the report shows that the total funds raised by Philippine startups have grown from $40 million in 2010 to $1.1 billion in 2022. This marks a growth of over 27 times in the past 12 years and the second straight year that the Philippines secured more than $1 billion in startup funding.
“B2C, and even more specifically D2C businesses are doing quite well in the Philippines. This is because the Philippines’ GDP is consumer-driven, with over 70% of the GDP being domestic consumption. We expect that b2b/saas solutions will soon follow,” Foxmont Capital Partners Managing Partner Franco Varona said.
How is the national government playing an active part?
“The Department of Information and Communications Technology and the Department of Science and Technology now actively deploy from their Startup Grant Fund, which provides equity-free grants to extremely early-stage startups. The National Development Corporation, under the Department of Trade and Industry, now manages the Startup Venture Fund, which allows for direct investments into startups with the support of their accredited co-investors. The government now understands the importance of the digitization of the nation, and we are already seeing clear steps forward that will support our startups,” Varona also said.
What challenges lie ahead for Philippine startups?
“We recently ran a survey with our portfolio companies, and most of the challenges are right at the beginning - starting with the speed, or lack thereof, in which one can register a business. However, as mentioned earlier, as support and interaction with the government increases, we expect this to be addressed sooner than later,” Varona said. Founded in 2018, Foxmont Capital targets early-stage startups with a focus on Filipino-founded businesses.
“We at Foxmont are thrilled to witness the Philippines’ continuous development and together, we hope to aspire towards ever-greater heights,” said the report.
With its recent Fund II close of $21.3 million, Foxmont is the first and largest independent Philippine VC firm.
Know more about Foxmont and the Philippine startup ecosystem by downloading the full Philippine Venture Capital Report 2023 here: https://www.foxmontcapital.com/pvcr-2023-subscription.
