Startups in the Philippines raise US$1.03 billion

The Philippine Venture Capital Report 2022 said local startups raised US$1.03 billion for funding in 2021, a 179% increase year-on-year.
By: | April 6, 2022
Topics: News | Philippines

This amount was higher than the US$369 million raised in 2020 and the US$152 million in 2109, according to the report by venture capital fund Foxmont Capital Partners (FCP) and global management consulting firm Boston Consulting Group.

“2021 has been a watershed year for the Philippine startup ecosystem, with total deals hitting a record of 92,” the report said, adding that last year’s deals in the Philippine startup ecosystem rose 41.5% compared to the 65 closed in 2020.

Over the last three years, deal activity has been increasing and averaging 15.33 deals per quarter.

By sector, fintech startups continued to drive the lion’s share of deal activities in the country last year, accounting for 77.0% of deal value and 65.8% of volume. This was driven in no small part by the pandemic, which showed the importance of digital finance services.

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By deal value, the media and entertainment sector represented a 13.45% share, while e-commerce accounted for 8.51%.

The report also said in the January-to-February period this year, Philippine startups have raised funds of over US$310 million, outpacing that of the same period in the last two years, according to Philstar Global.