Philippine Venture Capital Report 2023 (Foxmont Capital Partners)

Summary

• Funds raised by Philippine startups exceeded $1 billion for the second year in a row in 2022, at $1.03B.p.8
• Total deal value per year has grown by over 27x in the last 12 years.p.8
• The Philippine share of venture capital funds among SEA countries more than doubled from 2% in 2020 to 5% in 2021 and grew to 9% in 2022.p.9
• In 2022 worldwide venture capital investments shrunk by 37%, with a 27% decrease in total value of deals in Southeast Asia, while Philippine funds raised grew 7% from the year prior.p.9
• The Filipino digital economy doubled from $8B to $16B from 2019 to 2021 and is projected to grow to $35B by 2025.p.7
• As of February 2023, the Philippines had already seen 17 investments, with Q1 projected to hit 23.p.8

Key insights

1. Investments below $5M still have the biggest share in terms of number of deals.p.8
2. 2021 was a record year globally with 31,526 deals and USD$794.2B in aggregate capital raised.p.9
3. The Philippines ranked 59th globally on the Global Innovation Index.p.6
4. Mobile connectivity ranking jumped 115 spots from 176th to 61st, and fixed broadband 36 spots from 92nd to 56th.p.6
5. Internet users reached 85.1 M, with internet penetration up to 75%.p.3
6. Smartphone device owners reached 98.8% of internet users aged 16-64 in 2022.p.4