The Full-Year 2025 Southeast Asia Startup Funding Report showed that Philippine deal volume fell to nine transactions in the second half of 2025, down from 14 deals in the first half, alongside a sharper pullback in capital deployed.
Funding slows further
Total equity funding dropped to $33 million in the second half of 2025 from $86 million in the first half, reflecting continued investor caution and smaller average ticket sizes in the local market.
Across Southeast Asia, however, equity deal volume edged up slightly to 233 transactions in H2 2025 from 228 deals in H1, signaling that while funding remains well below prior-cycle peaks, the regional downturn may be entering a stabilization phase.
Shift in strategy
“The 2025 data suggests Southeast Asia, including the Philippines, has moved past the trough and into a consolidation phase,” said Joan Yao, general partner at Kickstart Ventures, in a statement.
“Capital is returning selectively, increasingly to later-stage, higher-conviction opportunities, as the market continues to shift from growth at all costs toward business fundamentals—governance, unit economics, and credible paths to profitability,” Yao added.
Late-stage gap persists
Despite signs of stabilization, the report highlighted a continued absence of late-stage funding in the Philippines. There were no disclosed Series C or later-stage deals in both H1 and H2 2025, extending a slowdown that began in mid-2024.
This contrasts sharply with the broader Southeast Asian market, where late-stage deal volume more than doubled to 24 transactions in H2 2025, accompanied by a rebound in funding value. The regional trend points to renewed investor confidence in more mature, de-risked companies.
Fintech leads locally
Fintech remained the most active startup sector in the Philippines in 2025, accounting for nine disclosed transactions totaling $72 million. The sector continued to dominate local deal flow even as regional fintech funding posted one of its weakest performances in more than six years.
Across Southeast Asia, fintech deal volume declined to 111 transactions, down from 154 in 2024, while total funding value fell to $1.3 billion.
Climate investments rise
Beyond fintech, climate- and sustainability-linked investments are gaining structural relevance at the regional level.
These sectors accounted for 15.4 percent of total Southeast Asia deal volume in 2025, up from 13 percent in 2024, reflecting growing investor focus on long-term resilience and environmental impact.
“The full-year dataset points to stabilization, but also deeper concentration by stage, by market, and by sector,” said Andi Haswidi, head of data research at DealStreetAsia. “We hope the report serves as a practical reference for founders and investors navigating a higher-scrutiny environment and planning cross-border growth.” —Ed: Corrie S. Narisma
