{"id":4232,"date":"2019-07-08T13:37:59","date_gmt":"2019-07-08T13:37:59","guid":{"rendered":"https:\/\/www.startupblink.com\/blog\/?p=4232"},"modified":"2021-03-12T10:08:40","modified_gmt":"2021-03-12T10:08:40","slug":"manilas-startup-ecosystem","status":"publish","type":"post","link":"https:\/\/www.startupblink.com\/blog\/manilas-startup-ecosystem\/","title":{"rendered":"Manila\u2019s Startup Ecosystem"},"content":{"rendered":"\n
This article was written in cooperation with QBO Innovation Hub in preparation of Startup Ecosystem Ranking Report 2019<\/a> that ranked Manila in spot 84 out of 1,000 cities.<\/strong><\/h5>\n\n\n\n

Click here<\/a> to view Manila\u2019s Startup Map<\/strong><\/p>\n\n\n\n

The Philippines startup ecosystem, while still relatively small, especially if compared to its Southeast Asian neighbors, is rapidly evolving. Many players in the industry are confident that Filipinos have the capacity, creativity, and skill to build successful startups.  <\/p>\n\n\n

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There are over 300 active startups in the Philippines, with the current startup ecosystem largely concentrated within Metro Manila, the national capital region of the country. Majority of the country\u2019s startup stakeholders are based within Metro Manila, but Davao City and Cebu City also show great promise as potential launchpads for new startups. <\/p>\n\n\n\n

The current momentum of Manila\u2019s startup ecosystem<\/strong><\/h2>\n\n\n\n

In 2015, there were only 100 reported active startups in the Philippines with a total of US$40 million in funding and investment. Majority of those startups were still in the early development stages with very few exits. In the latest Southeast Asian Startup Ecosystem report, there were over 300 active startups reported in 2018 that have raised a total deal value of US$304 million. <\/p>\n\n\n\n

While the Philippine startup ecosystem is still catching up with its Southeast Asian peers, it\u2019s certainly grown significantly over the years. Already, it\u2019s attracted foreign collaboration with its inclusion in global startup initiatives such as Echelon, She Loves Tech, Tech Planter, etc. And it\u2019s also attracted foreign investments with the development of the Gobi-Core fund, a collaboration between Core Capital, a Malaysia-based Chinese VC, and Gobi Partners, a Philippine-based VC, to create a US$10 million for seed stage and pre-series A companies in the Philippines. <\/p>\n\n\n\n

The biggest success stories <\/strong><\/h2>\n\n\n\n

Revolution Precrafted<\/a> is the Philippines\u2019 first unicorn. After 2 years in business, Revolution Precrafted, a designer of prefabricated designer homes, raised its series B round co-led by Singapore\u2019s k2 VC, valuing the company at over US$1 billion. This makes it one of the fastest to achieve billion-dollar status in Southeast Asia.<\/p>\n\n\n\n

Sulit.com.ph<\/a> was one of the largest online classified ads network in the country, which was eventually acquired by Naspers Classifieds Group when they bought 51 percent of Sulit for an undisclosed sum. Also a major shareholder at OLX, the company announced in 2013 that Sulit would merge with OLX in a bid to capture 80 percent of the market. <\/p>\n\n\n\n

Coins.ph<\/a> is a local fintech company that enables those without a bank account to easily access financial services from their phone. It was recently acquired by the ride-hailing startup, Go-Jek, through a \u201csubstantial investment\u201d as part of their expansion plans into the Philippines. While the deal is officially undisclosed, it has been reported that Go-Jek paid US$72 million for the acquisition, making it Go-Jek\u2019s largest outlay to date. <\/p>\n\n\n\n

City strengths for startups <\/h2>\n\n\n\n

Government investment and central bank policies are putting the systems in place to encourage growth and development for small and medium enterprises (SMEs). This includes the P3 program, Kapatid Mentor Me Program, Go Lokal Program, SME Roving Academy, Shared Services Facilities, Go Negosyo Act, Slingshot Philippines, and QBO innovation Hub. These initiatives are meant to encourage more startup entrepreneurship through local and international collaboration, address barriers to growth, and support existing startups. <\/p>\n\n\n\n

Strongest industries in the Philippines<\/h2>\n\n\n\n