Philippine Venture Capital Report 2020 (Foxmont Capital Partners)

Summary

• The first half of 2020 recorded USD 51.8 million in venture capital funding at the early-stage level, surpassing 2019's USD 37.9 million but far behind 2018's USD 110.2 million.p.7
• 14 deals were completed in 1H2020 compared to 24 in 1H 2019.p.7
• Between 2018 and the first half of 2020, total investments into startups in the Philippines amounted to about $547M, of which venture capital totalled approximately $200M.p.5
• 6 deals in the past three years account for nearly 80% of total startup funds raised.p.7
• The FinTech sector was responsible for over 80% of the total announced invested capital in the first half of 2020, which brought $184M.p.8
• Private equity funding takes up 63% of total startup deal value between 2018 and 1H2020, followed by Series A at 11% and Seed at 9%.p.9

Key insights

1. The Philippine startup ecosystem ranked 53rd across the globe in 2020 and is home to 400+ startups, 50+ angel investors and 40+ venture capitalists.p.5
2. Early-stage is the most prevalent form of funding, taking up 49% of deal count at 52 deals.p.9
3. Makati City accounted for 29% of total deal volume, followed by Taguig City at 22%.p.10
4. Voyager Innovations raised USD 175.0 million and USD 120.0 million in private equity rounds.p.7
5. 96% of founders and 78% of investors are confident about their prospects for revenue growth over the next two years.p.6
6. 73% of investors want to inject up to $5 million in Philippine startups in the next three years.p.6