PHILIPPINE startups raised $86.4 million in the first half of 2025, overtaking Indonesia’s $78.5 million and emerging as a bright spot in a slowing Southeast Asian venture capital market, Kickstart Ventures said on Wednesday.
The firm unveiled its Southeast Asia Startup Funding Report H1 2025, prepared with DealStreetAsia, showing the Philippines as a standout performer “amidst a regional startup market reset.”
Overall equity investment in the region dropped 20.7 percent year-on-year to $1.85 billion from $2.33 billion across 229 transactions — the weakest deal volume and value in six years.
However, Kickstart pointed out, “Encouraging signals can be seen across several markets.”
“In the Philippines, startups collectively raised $86.4 million, edging past Indonesia for the first time,” it added.
Still, the total was down 63.5 percent from $237 million in the second half of 2024, underscoring the ecosystem’s reliance on early- and mid-stage funding rounds.
DealStreetAsia’s head of data research Andi Haswidi noted that capital deployment more than doubled in the second quarter to $1.28 billion from $580 million in the first, suggesting investors were writing fewer but larger checks for stronger stories.
Joan Yao, Kickstart general partner, said the Philippines has demand on its side, with more than 95 million digital consumers and a rapidly growing middle class.
“While fintech still dominates — neobank Salmon raised the largest deal at $28 million — health, food and beverage, and retail tech are also attracting capital,” she said.
Yao added that the scarcity of late-stage deals presents both a challenge and an opportunity. “Investors are favoring early momentum and founder grit, making their role even more critical in helping strong teams scale into regional players,” she said.
Across the region, three new unicorns emerged in the first half: Malaysia’s Ashita Group, Singapore’s Thunes, and digital asset bank Sygnum. Kickstart said 58 Southeast Asian startups have now reached unicorn status.
Sectoral trends showed fintech keeping its lead despite six-year lows, while health-tech rebounded and green-tech logged 20 transactions. Yao said sustainability-linked sectors — from renewable energy to low-carbon mobility — continue to draw investors seeking measurable impact even amid softer valuations.
