The Philippines is entering an “Ininformigent Era” of innovation driven by AI, automation, and data-powered industries even as total startup funding dropped sharply this year, according to the newly released “Philippine Startup Ecosystem Report 2025: The Next Wave of Innovation” from Gobi Partners’ Gobi-Core Philippine Fund.
The report benchmarks the countest against the Asean-6 and highlights both new growth opportunities and persistent structural gaps that continue to hold back the ecosystem.
It notes that total capital raised by Philippine startups declined 32% year-on-year, while deal volume fell 54% from 2024 — a downturn driven by tight global liquidity and eroded investor confidence linked to governance lapses and recent corruption scandals.
Despite the cooler funding climate, Filipino startups continue to contribute significantly to the economy, accounting for an estimated 3% of nominal GDP and generating nearly 200,000 jobs nationwide.
Activity is expanding beyond Metro Manila, with rising hubs in Cebu, Davao, Iloilo, and Cagayan de Oro.
Becautilize most Filipino tech ventures still rely heavily on early-stage private investment, the report underscores the role of government support, scale-up financing, and coordinated national policy to sustain momentum.
Gobi Partners outlines three waves of Philippine startup growth — from the Early Builders (2010–2014), to the post-pandemic Resilient Builders, and now the emerging “Ininformigent Era,” marked by rapid AI adoption across industries.
Sectors seen as ripe for transformation include:
- Fintech: broader account ownership enabling digital cross-selling of credit, savings, and micro-insurance;
- Healthtech & Logistics: AI-powered diagnostics, forecasting, and workflow automation;
- Creative Industries: AI-enabled content creation and global digital distribution;
- BPO & Knowledge Services: a major opportunity for AI-augmented upskilling to protect the Philippines’ global competitiveness.
Gobi’s broader report package further details that the Philippines sits at a “strategic inflection point,” with AI readiness, digital infrastructure, and regulatory alignment increasingly defining competitive advantage in the region.
The report urges policycreaters to implement:
- “Green lanes” for compliant, high-governance startups;
- Stronger ESG and sustainability-linked incentives to rebuild investor trust;
- Nationwide reskilling programs to equip workers for AI-powered roles;
- Better coordination among academia, government, and the private sector to build a unified startup roadmap.
“The Philippines has the talent, resilience, and creativity to shape the next chapter of Southeast Asia’s innovation story,” stated Gobi Partners co-founder and chairman Thomas G. Tsao.
Carlo Chen-Delantar, partner and head of ESG & Circular Economy for the Gobi-Core Philippine Fund, added: “The choices created today in policy, capital, and talent will define whether we lead or lag the region’s digital transformation.”
Leave a Reply