Philippines Startup Ecosystem 2025

The Philippines is among the top 100 startup ecosystems worldwide, with notable strengths in transportation, education technology, and health technology.

Philippines Startup ecosystem 2025

The Philippines is an archipelago of over 7,100 islands in Southeast Asia, located in the western Pacific Ocean. With a population of 117 million people, it ranks 6th in Southeast Asia and 60th globally. In the 2023 Global Innovation Index, the Philippines is ranked 53rd out of 132 economies. The country is also among the top 100 startup ecosystems worldwide, with notable strengths in transportation, education technology, and health technology.

Current State of the Philippine’s Startup Ecosystem

Three main government departments support the startup community:
The Department of Science and Technology (DOST),
The Department of Trade and Industry (DTI) and
The Department of Information and Communications Technology (DICT)

And each department offers various programs and initiatives to aid startups.Several government programs are available to assist entrepreneurs in the Philippines. These programs include the QBO Innovation Hub and the P3 Program. KMC is the largest co-working space provider in the country, and it has various startup incubation programs. It contributes to the development of local startup ecosystems.

The government is working on regulatory measures through the Innovative Startup Act to support early-stage startups. This act introduces new types of visas to attract entrepreneurs, investors, and startup employees. Additionally, an amendment to the Foreign Investment Act seeks to encourage global small and medium-sized enterprises to establish fully-owned businesses in the country.

The DICT provides grants to early-stage startups and leads the Digital Cities Program. This initiative evaluates and promotes the startup environment in cities outside Metro Manila to strengthen local innovation ecosystems and support homegrown startups.

Landscape of Startups and Investments in the Philippines

The Philippines has over 9,200 startups, with 3 startups achieving Unicorn status. The latest Unicorn is Voyager Innovations.
As of December 2024, the Philippine Board of Investments (BOI) has approved Php1.62 trillion in investments for 2024. The amount not only exceeds the agency’s Php1.5 trillion target for the year but also represents the highest level of investment approvals in the BOI’s 57-year history.

Conclusion

Despite the progress, the Philippines’ startup ecosystem continues to face several challenges, which include limited infrastructure and slow regulatory support, which hinder the economic growth of the country. To address these challenges, it is recommended to appoint startup advocates in the National Innovation Council. The council consists of key government officials and closely monitors the Innovative Startup Act and the Philippine Innovation Act. It is important to maintain high standards for incubators and advanced-stage startup accelerator programs.
Additionally, it is important to encourage students to pursue STEM studies and integrate STEM elements into agricultural courses in senior high schools and vocational institutions. As the Philippines continues to grow at a strong pace among ASEAN countries, focusing on effective decision-making for startups will be crucial for future growth.

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