Startups in the Philippines won more than $2.1 billion in annual funding deals in 2021 and 2022 and expect to sustain the growth this year, according to the Philippine Venture Capital Report 2023.
New funding deals are expected to be clinched at the Geeks On A Beach (GOAB) international conference on Nov. 22 to 24 at Panglao Island in Bohol, which gathers startup founders, entrepreneurs, software engineers, technologists, venture capitalists, corporates, government and other stakeholders.
“In 2010, Filipino startups raised $40 million in funding. This has gone up 27 times to $1.03 billion in 2021 and $1.1 billion in 2022. This is a vote of confidence for Filipino startups that ought to be celebrated and continued,” said GOAB founding organizer Tina Amper of GeeksPH.
Amper said Filipinos’ share in funding available or won across the region grew in the past three years, as she expressed elation over the rosy report by Foxmont Capital Partners.
“Comparing the aggregate deals closed by country, the Philippines has increased its stake relative to neighboring Southeast Asian countries over the last three years. The Philippines more than doubled from 2 percent in 2020 to 5 percent 2021, and further grew to 9 percent in 2022. This once again shows that Philippine deal growth is reaching admirable levels compared to its neighbors,” said the Foxmont study.
Deals refer to venture capital transactions where startup companies raise capital from external sources, which include financing received from venture capital funds, angel investors, angel groups, accelerators, incubators, corporate venture firms, corporate startup investors, joint ventures, private equity funds, mergers and acquisitions, grants and crowdfunding.
Amper said startup successes mean more entrepreneurs, more employment, more contributions to the economy and more benefits for the Filipino public.
The e-Conomy SEA Report 2022 says the value of Philippine e-commerce market grew exponentially from $3 billion in 2020 to $14 billion in 2022.
Statista said the total mobile wallet transactions, led by dominant leader GCash, amounted to $28.6 billion in 2022, or almost twice the figure in 2021.
The Philippines also approved licenses for six digital banks that aim to make the financial system more inclusive. These include Overseas Filipino Bank, Tonik, UNO, Maya, UnionDigital and GoTyme. Universal, commercial and rural banks are also actively pushing digital-only savings products.
The Department of Information and Communication Technology supported GOAB from its first conference 10 years ago.
“GOAB has been a part of the startup ecosystem since 2013. We are excited to meet old and new friends for this unique conference where we celebrate victories, share insights, pitch their ideas, and collaborate,” said Amper.
Other GOAB co-organizers from #geeksPH non-profit coalition include Dave Overton of Symph, Mark Deutsch of Happy Garaje and Doris Isubal-Mongaya of PRWorks.