Philippines startup funding reaches $86 million in H1

MANILA, Philippines —  The Philippines has overtaken Indonesia for the first time in terms of startup deal value in the first semester, according to a report from corporate venture capital firm Kickstart Ventures and media company DealStreetAsia.

The Southeast Asia Startup Report for the First Half 2025 showed that Philippine startups collectively raised $86.4 million in the first half, higher than Indonesia’s $78.5 million.

Kickstart Ventures general partner Joan Yao said in a media roundtable yesterday that the Philippines recorded 15 startup deals in the first half, fewer than Indonesia’s 34.

“Philippine deals were fewer but larger and Indonesia had more but smaller,” she said.

She said the deals in the Philippines were mostly in fintech, human resources technology and food and beverage.

Despite edging past Indonesia, the Philippines’ startup deal value in the first half  declined from the $191 million recorded in the same period last year.

Yao said the drop was in line with the slowdown in startup activity in the region.

The report showed that Southeast Asia’s equity investment dropped by 20.7 percent year-on-year to $1.85 billion across 229 transactions, the lowest level in both deal volume and value in six years.

“The numbers reflect a cautious environment shaped by macroeconomic headwinds and heightened scrutiny of governance standards. 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,” Yao said.

Asked if the Philippines would continue outpacing Indonesia, she expressed hope that the momentum would be sustained in the second half.

As global investors tend to view Southeast Asia as a single region, Yao said that Indonesia’s ability to recover from its challenges could also have a positive impact on the Philippines.

“So you kind of hope that they will recover because that sends the message to everyone that Southeast Asia, including the Philippines, is a good place to do business,” she said.

Given the Philippines’ young population, growing middle class and rising consumer spending, she said the country offers opportunities that startups can tap.

“The Filipino consumer is looking for new goods and services that cater to their evolving tastes. This is a great opportunity for many startups,” Yao said.

In terms of opportunities, she said startups could help address challenges facing the country like financial inclusion, rising health care costs and climate shocks.

“When you talk about opportunity in the Philippines, what’s great is it’s not just what will make money. I think it’s also what are real problems that are facing our country, our countrymen and what can startups do to help address these issues,” she said.