The startup scene is booming in the Philippines, according to Foxmont Capital Partners.

In its latest Philippine Venture Capital Report, the Manila-based venture capital firm revealed that startup companies in the country managed to raise funds of over $1.1 billion in 2022. This is the second year in a row that PH startups have surpassed the $1 billion mark, which is a remarkable feat considering global VC funding declined by 35 percent.

In terms of the annual total deal value, the funds raised by Philippine startups in 2022 have grown 27x more than in 2010, when startups at the time raised a relatively measly amount at $40 million. This all-time high also translates to a seven percent year-on-year growth in venture capital investments and exhibits the resilience of the PH market despite global venture capital investments shrinking by 37% in 2022.


See also: Top 10 startups in the Philippines — LinkedIn

The report further notes that the Philippine share of venture capital funds is growing at an incredible rate when compared to its Southeast Asian neighbors. From just 2 percent in 2020 in terms of aggregate deals closed, the Philippines reached 5 percent in 2021 and then 9 percent in 2022.

In terms of the number of deals, the sub-$5 million investments make up the biggest share in the Philippine market. The country has already closed 17 investments as of February 2023 and is expected to secure six more by the end of the first quarter.

As to how the PH startup scene is experiencing rapid growth, the report cites supportive government policies, the utilization of sari-sari stores as platforms for digital services, and the rise of direct-to-consumer brands.

This article, Despite global decline, PH startups raised more than $1 billion in 2022, was originally published at NoypiGeeks | Philippines Technology News, Reviews and How to’s.