MANILA, Philippines — Investments in startups in the Philippines reached over $430 million in the first half of the year, according to a report from venture capital fund Foxmont Capital Partners.
Santino Ongsiako, director of operations at Foxmont Capital Partners, who presented the Philippine Venture Capital Report 2021 in a webinar, said the country’s start-ups saw a record $438 million in funds raised in the first semester.
The amount is higher than investments in Philippine start-ups, which reached $184 million in the first half last year, and the year-round value of $37.9 million in 2019.
Ongsiako said the majority or 82 percent of the deals emerged from the National Capital Region.
Fintech remained the dominant sector in terms of deals.
“The sector is primarily driven by the pandemic and continued regulatory support,” Ongsiako said.
Lockdowns imposed to prevent the spread of the coronavirus resulted in an acceleration of digital payments adoption.
The central bank is also providing support to the fintech space as digital banking and payments are helping drive financial inclusion.
E-commerce also emerged as an active sector in terms of investments in start-ups.
The sector continues to exhibit growth both in terms of transaction value and adoption given the ongoing pandemic.
“The Philippines has an attractive market demographics and I believe this sets the stage for a start-up ecosystem to really flourish,” Ongsiako said, citing the country’s population of over 100 million, 89 million social media users, as well as high internet and mobile penetration rate.
At present, the country has over 1,000 startups, more than 35 incubators or accelerators, and over 100 angel investors.