MANILA, PHILIPPINES — Gobi-Core Philippine Fund, the premier Philippine-focused venture capital fund under Gobi Partners, has just launched its groundbreaking report in partnership with Alibaba Cloud and Eskwelabs, “Philippine Horizons: Filipino Innovation in the ASEAN Landscape.” This highly anticipated report is designed to elevate the conversation on the Philippines’ startup ecosystem, benchmarking it against ASEAN counterparts and highlighting opportunities and challenges on the horizon.
The report reveals that 2024 marks a turning point for the Philippines, with the ecosystem rebounding after volatile funding rounds in 2023. The report found that the total funding amount for 2024 reached over US$1 billion, almost four times larger than last year. Total deal volumes grew nearly four times compared to 2023, despite deal count increasing by only around 14%. This growth was largely driven by a shift towards larger, growth-stage funding rounds mostly in FinTech compared to the previous year which saw mostly bridge rounds focused on survival.
In addition to this shift in funding focus, 2024 also saw a rise in debt financing, signalling that startups in the Philippines are increasingly stable and capable of taking on loans, a departure from the earlier reliance on equity rounds that are common in early-stage companies. However, the increase in debt financing also suggests ongoing challenges in securing equity funding, as the broader market conditions continue to affect access to venture capital. This transition from bridge financing to growth-stage capital further highlights the maturation of the Philippine startup ecosystem, with startups scaling operations and preparing for regional expansion.
As the Philippines navigates its path forward, “Philippine Horizons” underscores the urgency of closing the gap with regional peers like Vietnam and Thailand, where sectors such as AI, semiconductors, and digital infrastructure are flourishing. From Singapore’s deep-tech dominance to Malaysia’s rise as a semiconductor hub, neighboring ASEAN countries are carving out distinctive industry niches. The report highlights specific areas where the Philippines can lead, including AI integration and talent pipeline development, positioning the country to stay competitive within the evolving ASEAN landscape.
Carlo Chen-Delantar, Partner of Gobi-Core Philippine Fund, stated, “This report is more than an analysis; it’s a roadmap for action. We envision technology as a nation-building tool, with the Philippines embracing innovation not just to catch up but to leap ahead. Our insights provide stakeholders a clear path to make the Philippines a true startup hub.”
Launch of the Gobi’s Philippine Startup Database
In line with the report’s findings, Gobi-Core is proud to announce the Philippine Startup Database – a community-driven, open-source resource created by and for the ecosystem. As the first of its kind in the Philippines, this database will serve as a central repository of startup information, inviting investors, ecosystem enablers, and policymakers worldwide to connect directly with emerging Philippine startups. By fostering a collaborative and inclusive space, the database accelerates growth and visibility for local innovators while creating a welcoming entry point for anyone interested in contributing to the Philippine startup story.
With a young tech startup ecosystem, the Philippines offers significant growth potential, characterised by low competition and ample opportunities for new players to emerge as industry leaders. The nation’s rising middle class, expansive BPO sector, and significant Overseas Filipino Worker (OFW) population create a skilled and cost-effective workforce, making it easier for startups to scale quickly. Not to mention, Google’s “e-Conomy SEA 2024” report found that the Philippines’ digital economy has been continuously rising, with a 20% increase in gross merchandise value this year. These position the nation well for a tech-driven future, if the ecosystem receives the strategic support it needs.
What’s Next?
The Gobi-Core team is committed to advancing this report’s impact by launching an initiative to unite stakeholders with one mission: to position the Philippines as a formidable player in Southeast Asia’s tech landscape. With a bold call to action – “Now or Never” – Gobi-Core urges the Philippine community to seize this moment and drive transformative change.
The report calls for comprehensive policy support, including startup visas, tax incentives, and simplified regulatory processes, to create a truly inclusive ecosystem. It also champions a collaborative approach, inviting government bodies, investors, academia, and tech leaders to partner in building a robust ecosystem that can rival any in the region.
“Philippine Horizons: Filipino Innovation in the ASEAN Landscape” is available now. Join in shaping the future of the Philippine startup ecosystem. Read the report on the Gobi-Core Philippine Fund website and become part of the movement to elevate the Philippines on the global tech stage.
