Gobi-Core Philippine Fund, the leading Philippine-focused venture capital firm under Gobi Partners, has just unveiled its report, “Philippine Horizons: Filipino Innovation in the ASEAN Landscape.”
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This report aims to advance the discussion on the Philippines’ startup ecosystem by comparing it with its ASEAN peers and shedding light on emerging opportunities and challenges ahead.
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Funding winter is ending as total funding rebounds in 2024. Year-to-date technology funding in the Philippines has finally surpassed US$1 billion, nearly quadrupling last year’s figure. This surge reflects a shift towards larger growth-stage funding rounds, particularly in FinTech, compared to 2023. Debt financing is also rising as Philippine startups become more stable and better positioned to take on loans, moving away from equity funding typically seen in early-stage ventures.
The Philippines continues to attract a steady influx of both local and foreign investments from the private and public sectors. While government and domestic investors focus on early-stage rounds, foreign investors are increasingly directing their capital toward growth-stage funding, further fueling the expansion of the country’s startup ecosystem.
To accelerate the growth of the Philippine startup ecosystem, insights from ASEAN-6 neighbours — Singapore, Malaysia, Thailand, Indonesia, and Vietnam – offer valuable lessons. These countries have successfully nurtured dynamic startup landscapes by implementing supportive government policies, fostering strong public-private partnerships, and creating a more favourable business environment for innovation. For instance, Singapore’s emphasis on venture capital funding and talent, Malaysia’s focus on regulatory ease for startups, and Indonesia’s development of tech hubs provide valuable examples for the Philippines. By leveraging these regional success stories, we can improve access to capital, enhance infrastructure, and cultivate a more collaborative ecosystem that supports early-stage startups and helps them scale sustainably. Learning from these neighbouring countries’ experiences could help the Philippines overcome existing challenges and unlock new growth opportunities in the startup space.
Governments across the region have been proactive in supporting the startup ecosystem, taking steps to stimulate innovation and entrepreneurship. Notably, the Philippine government has launched Technology Business Incubators (TBIs) across the country, providing startups with resources, mentorship, and networks needed to thrive. The establishment of the Startup Venture Fund, managed by the National Development Company (NDC), is a significant move to provide much-needed capital to early-stage companies. Programs such as startup grants under the Department of Information and Communications Technology (DICT) and the Department of Science and Technology (DOST) further bolster this support, offering financial assistance to innovative startups. These initiatives show the government’s commitment to creating a thriving startup ecosystem, and it is crucial to encourage continued government involvement regionally to ensure these programs are expanded, refined, and aligned with the evolving needs of the entrepreneurial community.
Alongside the report, Gobi-Core is eager to announce the launch of the Philippine startup database — a crucial step toward consolidating and centralising information about the country’s growing startup ecosystem. This database will serve as a comprehensive resource, providing valuable insights into the landscape of Philippine startups, including key players, funding rounds, industry trends, and growth trajectories. By creating a centralised platform for startup data, it becomes easier to identify gaps, track progress, and evaluate the effectiveness of various support initiatives. This initiative is essential not only for policymakers and investors seeking a clearer picture of the ecosystem but also for entrepreneurs and ecosystem builders who can use this data to make informed decisions and build stronger networks. Ultimately, the startup database will enhance transparency, foster collaboration, and support the strategic development of the Philippine startup ecosystem, helping it to grow in a more coordinated and efficient manner.
Looking ahead, collaboration is key. Now is the time to act, together building something transformative. By working in unison — government, investors, entrepreneurs, and other ecosystem stakeholders — the country can unlock the full potential of the Philippines as a hub of innovation and growth.
About Gobi-Core Philippine Fund
The Gobi-Core Philippine Fund was established in 2018 as a result of a joint venture between founding partners Jason Gaisano, Ken Ngo, and Carlo Chen-Delantar with Pan-Asian VC, Gobi Partners. Headquartered in Manila, Philippines and now serving as Gobi’s official Philippine office, the Gobi-Core Philippine Fund strategically invests in technology and technology-enabled startups across the country.
Gobi-Core has invested in some of the country’s leading startups such as Tier One Entertainment, Kumu, Etaily, and CloudEats through our multi-investment stack approach building market leaders in the Philippines to ASEAN. Gobi-Core is well-positioned to guide and springboard its local champions across Gobi Partners’ 15 countries’ Asian presence and track record of performance with the majority of its portfolio having expanded regionally.
As of 2023, Gobi-Core was officially accredited as the first Co-Investment Partner of the Philippine government’s Startup Venture Fund (SVF). Per the Innovative Startup Act (RA 11337), the SVF can be used to match investments by selected investors in startups of varying stages based in the Philippines. The SVF is a joint effort by the Department of Trade and Industry and the National Development Companto to fuel investments and innovation in the Philippine startup ecosystem.
