A new SEA Startup Funding Report by DealStreetAsia and Globe Telecom-backed Kickstart Ventures showed investments dropping 20.7 percent to US$1.85 billion during the period, weighed down by global headwinds and tighter regulations.
Hopes for regional rebound
Funding flows to the Philippines plunged over 50 percent to $86 million in the first half, marking its weakest level since the global pandemic.
Joan Yao, Kickstart Ventures general partner, said that despite the decline, the value of Philippine deals outpaced Indonesia ($78 million) for the first time, suggesting resilience in the market.
But she noted how cases of political unrest weigh on startups across the region.
“Investors globally, for better or worse, they see Southeast Asia as one region and what affects Indonesia has, to some extent, an effect on all of us,” Yao told reporters after presenting the findings of the report.
“So, you kind of hope that they will recover because that sends a message to everyone that Southeast Asia, including the Philippines, is a good place to do business,” she added.
Kickstart’s growing footprint
Kickstart Ventures, the largest corporate venture capital firm in the Philippines, has deployed P2.15 billion into local startups since 2012, backing names like Pickup Coffee, Kumu, Coins.ph, and Edamama.
The firm, founded over a decade ago by managing partner Minette Navarrete, has helped create around 600 jobs in the Philippines and supported $305 million in follow-on funding.
Innovation drives survival
Despite the perception of widespread civil unrest, including riots in Nepal, Andi Haswidi, Head of Data Research at DealStreetAsia, said startups can still thrive by solving real problems and focusing on innovation.
“It’s a challenging environment for founders but this is not something you want to seriously influence your strategy. You would look at how you are disrupting the market, how you are moving friction in the market, how you are coming up with innovation,” he said on Wednesday.
Haswidi also pointed out that economies like India have experienced even larger cases of corporate governance failures and scandals, yet still managed to bounce back.
“Why? Because India has shown many examples of success. I think Southeast Asian economies also have shown success stories and that will continue to inspire founders,” he said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
