Philippines’ 2025 startup funding lags Southeast Asian peers

THE PHILIPPINES drew $120 million (P7 billion) in equity funding in 2025, trailing most of its Southeast Asian peers as investors stayed cautious on the local startup market, according to a report by Kickstart Ventures, Inc. and Singapore-based DealStreetAsia Pte. Ltd.

By deal value, the country lagged Singapore, which raised $4.2 billion, as well as Vietnam ($360 million), Indonesia ($340 million) and Malaysia ($260 million). The Philippines ranked ahead of Thailand, which attracted $80 million, and Cambodia with $20 million.

Funding momentum weakened through the year. Deal value fell to $33 million in the second half of 2025 from $86 million in the first six months, reflecting smaller transactions and limited appetite for risk.

The number of deals from July to December dropped 64% to nine from 25 a year earlier.

“Capital is returning selectively, increasingly to later-stage, higher-conviction opportunities, as the market continues to shift from growth at all costs toward business fundamentals — governance, unit economics and credible paths to profitability,” Kickstart Ventures General Partner Joan Yao said in a statement on Tuesday.

Fintech startups accounted for the biggest share of disclosed funding in the Philippines last year, raising $72 million across nine transactions.

Other sectors that attracted investment included human resource technology and food and beverage, which raised $18 million each, followed by healthcare at $8 million.

Smaller amounts went to health tech ($2 million), e-commerce ($1 million), agricultural tech ($1 million) and green tech, which raised about $200,000.

Kickstart said there were no late-stage funding rounds in the Philippines in 2025, underscoring investor reluctance to commit to large-ticket deals amid heightened scrutiny of valuations and execution risks.

Across Southeast Asia, startup funding remained under pressure from geopolitical tensions, tighter financial conditions, longer fundraising cycles and stronger focus on governance, it added. — Beatriz Marie D. Cruz