The Philippines accounted for just 1.1 percent of Southeast Asia's startup funding in the first half of 2026, even as regional investments reached their highest half-year value in four years, according to a report discussed by Kickstart Ventures on Wednesday, 14 October.
The H1 2026 Southeast Asia Startup Funding Report, presented under the theme “Proof, Precision and Patience,” showed that $7.25 billion was invested across 217 equity deals in the region.
The funding value was the highest recorded since the first half of 2022, although analysts cautioned that the increase did not necessarily signal a broad market recovery.
The Philippines accounted for 3.2 percent of regional deal volume, equivalent to seven transactions.
During a media briefing, DealStreetAsia Head of Research Andi Haswidi said deal volume offered a more reliable indication of market stability than total investment value alone.
He noted that transaction activity had remained within a relatively narrow range over the past three half-year periods, suggesting that the regional startup market had established a baseline rather than entered a sustained recovery.
In the Philippines, startup funding deals declined to seven in the first half of 2026 from nine in the second half of 2025.
However, total funding increased from the $33 million recorded in the previous six-month period.
Financial technology remained the country's leading investment sector, attracting approximately $61 million, or about 75 percent of disclosed funding.
The period also marked the return of late-stage startup funding in the Philippines after a one-year absence.
A private equity investment in the healthcare sector represented the country's first late-stage transaction since the second half of 2024.
The report also identified a shift in Southeast Asia's investment landscape, with sovereign wealth funds, corporations and private equity firms taking increasingly prominent roles alongside traditional venture capital investors.
Kickstart Ventures Partner Jecky Pelaez emphasized that strategic partnerships could be just as valuable as funding, particularly for startups seeking customers, distribution networks and commercial opportunities.
“We’re seeing this as a commercial opportunity as much as a capital one. One of the reasons startups stall is that they can’t reach the customers that would prove the business, and those doors open through relationships they haven’t had time to build,” Pelaez said.
The report encouraged investors to participate earlier in startup development, particularly during seed and Series A funding rounds.
It also urged Philippine corporations and conglomerates to provide opportunities for startups through pilot programs and initial commercial agreements.
For founders, the report emphasized establishing partnerships that could help validate products, strengthen operations and support expansion.
Pelaez said entrepreneurs should recognize that building sustainable businesses requires patience and consistent execution.
“When you handle it well, when you handle your businesses well, opportunities are there. Scales take time. Promise to proof, proof to product, and products to scale,” he said.
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