Startup fundraising in the Philippines fell nearly 55 percent in the first half of 2025 to $86.4 million, down from $191 million a year ago. The decline reflects both regional and global investor caution, but the country managed to edge out Indonesia despite a subdued funding landscape in the region.
According to the SEA Startup Funding Report H1 2025 by DealStreetAsia in partnership with Kickstart Ventures, the Philippines’ first-half funding of $86.4 million outpaced Indonesia’s $78.5 million for the first time.
Overall, Southeast Asia saw equity investment fall 20.7 percent year-on-year to $1.85 billion across 229 deals, the weakest level in both deal value and volume in six years.
“The numbers reflect a cautious environment shaped by macroeconomic headwinds and heightened scrutiny of governance standards,” said Kickstart Ventures general partner Joan Yao in a briefing Wednesday. “Against this backdrop, the Philippines is well-positioned to move from the sidelines to center stage by leveraging its bright spots and strengthening investor confidence.”
Despite the slowdown, the report noted encouraging signs, with capital deployed in the second quarter of 2025 more than doubling from the first quarter.
Andi Haswidi, head of data research at DealStreetAsia, said the rebound in the second quarter suggests investors are still willing to commit to startups with a strong showing.
“While deal volumes remain muted, we’re seeing larger checks being written for companies with solid fundamentals,” Haswidi noted. “This shows investors are becoming more selective rather than retreating completely.”
Yao explained that much of this year’s activity has been concentrated in seed and Series A rounds, as late-stage deals remain scarce across the region.
Philippine fintech continues to dominate, led by neobank Salmon’s $28 million raise, the country’s largest equity deal during the period. Diversification is also underway as startups in health, food and beverage, and retail tech attract growing investor capital.
The softer fundraising environment follows a record-breaking 2024, when Philippine startups raised $1.12 billion to $1.2 billion, nearly doubling the previous year’s tally.
Yao said the pullback underscores how global conditions, such as rising interest rates, investor prudence and a recalibration after the pandemic-era digital boom, are reshaping capital flows into the region.
“Those who raised big rounds earlier are conserving cash and focusing on profitability so they can return to the market stronger in the next year or two,” she said.
