Funding for Philippine startups sees 40% decline in 2023: report

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Similar to Southeast Asia as a whole, the funding climate in the Philippines has been weakening.

Between 2022 and 2023, the number of deals and the amount raised by Philippine startups have decreased by more than 21% and 40%, respectively, according to a report by the Gobi-Core Philippine Fund – a joint venture between VC firms Gobi Partners and Core Capital – and Alibaba.

The report attributed these declines to “adverse market conditions influenced by a confluence of factors.”

In addition, the report featured a survey involving 33 founders in the Philippines, whose startups range between the seed to series C stages and are mostly from the ecommerce sector. Around half of their startups have hit breakeven, taking an average of four years to achieve the feat.

Of the interviewed founders, 57% believe that Philippine startups “greatly lack” funding opportunities.

The report added that founders are “conscious of how long it takes to fundraise at each stage of funding.” While the 33 founders interviewed took an average of four months after establishing their startups to raise angel funding, it took around 14 months to go from the seed stage to the series A stage.

A separate report from AC Ventures and Bain & Company showed a similar decline in VC funding in Indonesia. The report projects a decrease of up to 80% in deal value in the country for 2023 compared to last year.

See also: The players pushing the Philippines into the SEA fintech spotlight