Venture Capital - Philippines

  • Philippines
  • The Philippines is projected to reach a Total Capital Raised of US$660.8m in the Venture Capital market market by 2024.
  • In the Philippines, Early Stage is set to dominate the market with a projected market volume of US$347.0m in 2024.
  • In global comparison, the United States is expected to generate the most Capital Raised with US$264,500.0m in 2024.
  • The Philippines' Venture Capital market is seeing a surge in funding for tech startups, driven by a growing interest from local and international investors.

Key regions: China, Australia, India, Europe, Israel

 
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Analyst Opinion

The Venture Capital market in Philippines is experiencing significant growth and development in recent years.

Customer preferences:
Investors in the Venture Capital market in Philippines are increasingly looking for opportunities to invest in innovative and high-growth startups. They are attracted to companies that have the potential to disrupt traditional industries and create new markets. Additionally, investors are seeking startups that have a strong management team, a scalable business model, and a clear path to profitability.

Trends in the market:
One of the key trends in the Venture Capital market in Philippines is the increasing number of startup incubators and accelerators. These organizations provide funding, mentorship, and resources to early-stage startups, helping them to grow and succeed. This trend is driven by the recognition that startups play a crucial role in driving economic growth and job creation. Another important trend is the growing interest in technology startups. The Philippines has a young and tech-savvy population, which has fueled the demand for digital products and services. Investors are keen to capitalize on this trend by investing in startups that are leveraging technology to solve real-world problems.

Local special circumstances:
The Venture Capital market in Philippines is also influenced by local special circumstances. One such circumstance is the strong presence of the business process outsourcing (BPO) industry in the country. The BPO industry has created a pool of talented professionals with expertise in areas such as customer service, IT support, and data analysis. This talent pool is attractive to investors, as it provides startups with access to skilled workers at a lower cost compared to other countries.

Underlying macroeconomic factors:
The development of the Venture Capital market in Philippines is supported by several underlying macroeconomic factors. The country has a stable political environment and a growing economy, which provides a favorable business environment for startups. Additionally, the government has implemented policies and initiatives to promote entrepreneurship and innovation, such as tax incentives for startups and the establishment of innovation hubs. These factors contribute to the growth and development of the Venture Capital market in Philippines.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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