Despite a slowdown in the Southeast Asia startup market, the Philippines managed to dish out good performance in the first half of 20205. According to the recently launched SEA Startup Funding Report H1 2025 by DealStreet in partnership with the Philippines’ largest corporate venture capital firm Kickstart Ventures, the Philippines’ startups collectively raised $86.4 million, for the first time edging past Indonesia, which is down to $78.5 million.
SEA equity investment fell 20.7 percent year-on-year to $1.85 billion across 229 transactions, the lowest level in both deal volume and value in six years.
Regionally, Andi Haswidi, Head of Data Research at DealStreetAsia, noted that the second quarter of 2025 saw capital deployed more than double compared with the first quarter ($1.28 billion versus $0.58 billion), suggesting that while deal volumes remain muted, investors are willing to back stronger stories with larger checks.
‘The numbers reflect a cautious environment shaped by macroeconomic headwinds and heightened scrutiny of governance standards. Against this backdrop, the Philippines is well-positioned to move from the sidelines to center stage by leveraging its bright spots and strengthening investor confidence,’ said Joan Yao, Kickstart Ventures General Partner.
Moreover, the Philippines shows a strong market base with more than 95 million digital consumers and a rapidly growing middle class. According to neobank Salmon, which managed to raise the country’s largest equity deal within the time period at $28 million, there has been a diversification of sectors usually dominated by health, food and beverage, and retail tech.
‘Late-stage deals remain scarce in the Philippines, as elsewhere in the region-an opportunity in Kickstart’s view. Investors are favoring early momentum and founder grit, making their role even more critical in backing strong teams early and helping them scale into regional players,’ Yao said.
Despite this more selective environment, the region welcomed new unicorns. Malaysia’s Ashita Group raised $155 million at a unicorn valuation, Singapore’s Thunes secured $150 million at a $1.42 billion valuation, and digital asset bank Sygnum crossed the $1 billion mark. Based on the report’s tracking, 58 Southeast Asian startups have now achieved unicorn status.
Sectoral trends reflected the selective deployment of capital with fintech maintaining its lead even as both volume and value fell to their weakest levels in more than six years. Health-tech recorded a strong rebound, while green-tech registered 20 transactions despite a decline in overall value. Despite a weak half-year overall, sustainability-linked sectors stood out, led by climate startups in renewable energy, waste management, and low-carbon mobility. Moreover, Yao noted that investors continue to back these areas for their measurable and resilient climate and health impact, even as valuations soften.