A startup nation emerging, if we can bridge the divide

By Alea Ladaga, Community Manager, Sinigang Valley Association

The Philippines is no longer just “emerging.” With rich talent, expanding capital flows, and more than a decade of community and momentum, the foundations of a startup nation are finally visible. The real test is whether we can now connect resources, policy, and people into a cohesive, resilient ecosystem.

Not too long ago, the entire community could fit inside a vacuum of smaller events. Monthly gatherings can be counted on one hand, and introductions to “startups” require examples from giants like Grab, Uber, or Airbnb. 

Now, with careful curation and trial and error, that world has changed. Today, we measure progress not by the novelty of the term, but by the depth of our talent and the maturity of the solutions coming out of the Philippine ecosystem.

It’s a wide known factor that the Philippines has been steadily carving out its space in Southeast Asia’s technology landscape. What began as a scrappy set of early adopters has grown into a network of founders who no longer need to justify their career choice. Instead, they are building with greater nuance, focusing on local challenges and tailoring solutions to the realities of a diverse archipelago. Fintech continues to be the most lucrative industry to come out of the Philippine landscape, followed closely by sectors in logistics, e-commerce, green technology, and HR tech.

This shift is supported by the expansion of the ecosystem itself. Investors, entrepreneur support organizations, and service providers are no longer concentrated in Metro Manila. Hidden gems are emerging in rural spaces, often thanks to the intervention of local governments that recognize entrepreneurship as a growth engine.

The results are showing up in global reports. According to the Global Startup Ecosystem Report 2025, published by Startup Genome Report, Manila jumped 20 places in the Emerging Startup Ecosystem rankings, moving from 91-100 in 2023 to 61-70 this year. Emerging ecosystems are startup communities at earlier stages of growth, ranked by its ecosystem performance and its high potential to become top global performers in the coming years.

Despite the global “venture capital winter” — a slowdown in global funding due to recession — Philippine startups managed to raise $2.4 billion in funding and generate $258 million in exits between 2020 and 2024. These milestones highlight a growing belief, at home and abroad, that the Philippines is no longer an outsider but an ecosystem capable of producing real value.

Events like Philippine Startup Week, the BUILD Festival, and the rise of new hubs across the country reinforce this story. They are proof points that help us present the Philippines not as a market of potential, but as a country ready to compete.

The ambition of a Bagong Pilipinas

Government intervention has been an important driver. The Innovative Startup Act’s 2030 Vision sets out ambitious targets: more incubators, stronger sustainability for programs, double the number of funded startups, $10 billion in investments, and even the possibility of four unicorns. Agencies like the Department of Trade and Industry, Department of Science and Technology, and Department of Information and Communications Technology are working together to make these targets a reality, each contributing from their respective mandates.

Yet, ambition has its limits. Unicorns cannot be willed into existence by policy. They thrive only when ecosystems give founders the freedom to move quickly, the capital to scale, and the opportunity to compete globally. Chasing valuations as an end-goal risks overlooking what matters more: building a strong pipeline of resilient businesses that create jobs, uplift communities, and address the pressing needs of the Filipino population.

If there is one thing that truly sustains an ecosystem, it is moral ambition. The drive to innovate must be paired with systems that make founders feel supported, not only in government speeches but in the daily realities of building a company in the Philippines. This is where the gap between policy and practice remains most visible.

The founder’s reality

The Innovative Startup Act and the Startup Development Program have laid a strong foundation, legitimizing startups as an economic force and making entrepreneurship a viable career path. That legitimization has been a cultural breakthrough.

Professionals who once would not have considered leaving stable careers now pursue businesses with local relevance and stronger operational grounding. Conversations have matured, too. Where founders once struggled to access tech talent, they now experiment with no-code tools. Where teams were once informal, today we see the rise of fractional services, stable partnerships, and more sophisticated approaches to community building.

Even with this progress, fragmentation remains a pressing issue. The number of support providers has grown, but the lack of collective action makes it difficult for the ecosystem to move in unison. The pandemic accelerated the adoption of digital tools and improved infrastructure, opening space for networks like Sinigang Valley Association to emerge as a collective voice for impact.

Without stronger connective tissue between various mandates and agendas, much of the knowledge and opportunities stay siloed within individual incubators and accelerators, leaving startups outside these circles at a disadvantage. The challenge now is less about the supply of programs and more about building systems that allow the whole ecosystem to learn, share, and scale together.

Ease of doing business is another stubborn barrier. Founders regularly spend disproportionate time and energy on compliance rather than on building their companies. Without centralized information and clear guidelines, first-time founders often waste precious resources navigating bureaucracy by trial and error.

A recent mapping exercise by Makesense Asia highlights that early-stage effectiveness comes down to two needs: access to more non-dilutive funding and proof-of-concept resources, often available through grants and competitions that support early runway; and a central and practical playbook or guide for building a tech startup. Such a platform would provide a step-by-step roadmap on company formation, hiring, networks, and funding — updated in real time and simplified to remove the guesswork.

Private support maturing, but fragile

The role of incubators and accelerators has also evolved. They are no longer pitch-event factories but have matured into serious capacity builders. Specialized programs for women founders, deep tech startups, and regional hubs are reshaping the landscape. Philosophically, there has been a welcome shift away from the traditional Y Combinator model — where the success of a single unicorn justifies the failures of many — toward a “zebra” model. This approach prioritizes resilience and early cash-positive operations, encouraging founders to build companies that can survive and thrive even without chasing billion-dollar valuations.

As enablers create more programs to cater to the founders’ needs, organizational sustainability is still an issue. Many incubators depend on donor or government funding, which can limit their growth. In a world realized by the zero-sum game, the ecosystem is in a unique position to remove its competitive nature and create a collaborative environment for all to thrive.

Some have begun experimenting with strong partnerships anchored on corporate consulting models or drawing local family offices into fund-raising rounds, but the lack of coordination remains a bottleneck. The ecosystem would benefit from a dedicated facilitator or an anchor institution that connects organizations, bridges networks, spreads best practices, and supports newer teams emerging from local communities. Pollinate Impact, another network for impact incubators, have pioneered a program that allows incubator heads to consult seasoned guides in different problem areas, allowing for continuity between generations of builders.

What comes next

Policy can also help fill that role, but only if it evolves beyond symbolism. The Innovative Startup Act legitimized startups in political and economic discourse, but founders continue to wrestle with slow grant disbursement, regulatory drag, and limited domestic risk capital. Regional investors are taking notice of the Philippines, but local capital remains conservative, preferring safe industries over startups that carry higher risks.

A stronger policy framework could change this trajectory. A Philippine startup fund of funds, for instance, would direct resources into local venture capital firms and accelerators that are better-positioned to deploy quickly. Complementing this with tax incentives for investors backing early-stage ventures would unlock domestic capital flows and send a strong signal to global partners.

Regulation also needs to move at the speed of technology. The slow response to digitalization, blockchain and AI showed how damaging delays can be. Anticipating edge cases and designing safeguards before technologies scale would give the Philippines a competitive edge while protecting against future risks.

At its core, the Philippines has always been rich in creativity and entrepreneurial spirit. What we lack is not ingenuity, but systems that amplify it. The startup story we share on global stages must also reflect the lived reality of every Filipino founder — one where opportunities are accessible, networks are connected, and bureaucracy is no longer a stumbling block.

If we can close the distance between ambition and execution, the Philippines will no longer be framed as merely “emerging.” It will be recognized as a startup nation defined not by a handful of unicorns, but by ecosystems resilient enough to carry many founders forward.

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Alea Ladaga has been part of the Philippine startup ecosystem since its early days in 2014, working at the crossroads of founders, investors, government programs and community builders. She has worked with both regional and global organizations, and dedicated her time understanding what makes a startup ecosystem grow. She currently manages Sinigang Valley Association, a nonprofit network that brings together people shaping the country’s innovation landscape. Her work focuses on making the ecosystem more connected, supportive, and accessible for entrepreneurs solving real problems. She currently teaches entrepreneurship and management part time in Ateneo de Manila University.