Philippine Venture Capital Report 2024 (Foxmont Capital Partners)

Summary

• 2023 saw a record year in deal volume in the Philippines, up by 16% YoY, with a record 96 deals.p.6
• Average deal size fell to USD 10 million per deal in 2023 versus USD 13.4 million in 2022, so total funds raised declined by 14% YoY.p.6
• Southeast Asia saw a decline of 62%, with Indonesia and Singapore feeling the largest drops at 68% and 73% respectively.p.6
• Deals larger than USD 5 million fell 34% YoY, while deals of USD 1-5 million rose 25% YoY.p.6
• MSMEs make up 99.6% of business establishments in the country and generate 65.1% of total employment.p.3
• M&A deal value decreased by a third in 2023 while deal numbers increased by 12%, with an average deal size of USD 71M (2022: USD 124M).p.24

Key insights

1. The Philippines had the second-highest digital payment GTV growth (+17% YoY) in 2023 after Vietnam.p.5
2. 50% of Philippine retail payments have shifted from cash to digital methods.p.5
3. Small deals rose by 17% YoY in 2023.p.6
4. Companies on the Philippine Stock Exchange raised USD 2.9B through listings over the last three years, about a third of Indonesia's USD 10.3B.p.25
5. Gen Z's participation in the Philippine workforce has doubled.p.3
6. Employment opportunities have grown by 1.7% per year since 2010, outpacing yearly growth of 1.4% among individuals employed and actively looking for employment.p.19