Forged in fire: The Philippine startup ecosystem comes of age

"THE PHILIPPINES has so much potential." An oft-heard refrain, increasingly with a tinge of frustration.

- Bjorn Biel M. Beltran

Because while the country boasts one of Southeast Asia's youngest, most digital-ready populations, its startup community has long struggled to match its promise. Infrastructure, capital, and policy remain the defining challenges for Filipino entrepreneurs today.

The potential is recognized the world over. According to the 2025 Global Startup Ecosystems Report (GSER) by Startup Genome, Manila's startup ecosystem generated $6.3 billion (around P352 billion) in value from mid-2022 to the end of 2024. That marks a strong 35% annual growth rate compared to the previous two-and-a-half-year period.

Startup Genome defines "ecosystem value" as the combined valuation of funded startups (including unicorns) and recent exits such as acquisitions and initial public offerings (IPOs). In essence, it reflects the total economic impact generated by the startup scene during that time.

Bucking global trends, this pushes Manila up in the rankings of Emerging Startup Ecosystems, placing in the 61-70 bracket this year from 81-90 last year and 91-100 in 2023.

The GSER follows the results published by early-stage venture capital firm Foxmont Capital Ventures and Boston Consulting Group in their Venture Capital Report 2025, which found that despite the generally subdued sentiment within the local startup industry, startup activity in the Philippines actually peaked in 2024. Total funds raised by startups in the Philippines reached $1.12 billion last year, up 16.6% compared to 2023's $960 million and just slightly ahead of 2022's record $1.11 billion.

Yet, for all that increase in value, the country has been consistently declining in terms of ecosystem growth. In the 2025 Global Startup Ecosystem Index by research firm StartupBlink, the Philippines slipped to 64th place out of 100 countries with a score of 2.237, amid persistent gaps in infrastructure and regulations.