Manila: Around 15 startups from the Philippines have received funding of approximately USD86.4 million in the first half of 2025, surpassing their Indonesian counterparts, who secured USD78.5 million, a market report showed. This marks the first time the Philippines has outdone Indonesia in this regard.

According to Philippines News Agency, the Southeast Asia Startup Funding Report, recently released by DealStreet, a Singapore-headquartered media firm focused on the private capital industry, placed the Philippines fourth in the region for funding deals volume and value, following Singapore, Vietnam, and Malaysia. This achievement comes despite a 20.7 percent annual decline in equity investments across the region, totaling USD1.85 billion, the lowest in six years.

The majority of investments in Philippine startups were directed towards financial technology (fintech) firms, as noted by Joan Yao, General Partner at Kickstart Ventures, during a briefing. While funding levels in the first half of the year were lower than the USD237 million recorded in the latter half of 2024, Yao emphasized that this trend is not unique to the Philippines but is prevalent across the region.

"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 commented.

Fintech companies garnered the largest share of investments due to the vast digital consumer base in the Philippines, exceeding 95 million. However, Yao mentioned that other sectors such as health, food and beverage, and retail tech also attracted funding.

Yao pointed out the scarcity of late-stage deals in the Philippines, which she views as an opportunity. "Investors are favoring early momentum and founder grit, making their role even more critical in backing strong teams early and helping them scale into regional players," she explained.

Although Yao refrained from providing a full-year forecast, she emphasized the sustainable value of local startups. "I think what's more important is to highlight how our Philippine companies have gotten stronger and built better economics, better governance, and have very concrete results to show for themselves, which is now what is attracting investors to our market," she concluded.