How Manila Turned Around Its Startup Ecosystem
Philippines
Manila
Activation Phase
MEMBERS:
Department of Trade and Industry
Amidst the disruptions caused by the COVID-19 pandemic, the Philippine startup ecosystem is vibrant and thriving. This year, more than ever, we are leveraging our strength in Fintech to promote the increased use of digital payments and e-commerce as we move forward and adapt to a new normal.
Sub-sector Strengths
Fintech
Fintech companies make up 15% of Manila’s startups. The transaction value of the Fintech market in the Philippines reached approximately $10 billion in 2019 and is expected to grow by 24% in 2020, taking into account the expected impact of COVID-19. Notable Philippine Fintech startups include Coins.ph, a digital wallet and digital currency exchange, which was acquired for $72 million, and First Circle, an online financing platform for SMEs, which raised $26 million in a Series A round in 2018. In 2019, Paymongo, a modern payment infrastructure, raised $2.7 million in seed funding.
E-commerce
The Philippine E-commerce market is growing at a CAGR of 26.4%, one of the fastest growth rates in Southeast Asia. The government has developed the Philippines E-commerce Roadmap 2022 with an aim to improve the overall infrastructure landscape of logistics and e-payments among other initiatives to help boost online business activities. Startup success stories include GoodWork, a service provider hiring platform that closed a $1.6 million seed round in 2020.
Why you should invest in Manila
TOTAL EARLY STAGE FUNDING
$102 m
GLOBAL AVG.
$431 m
ECOSYSTEM VALUE
$1.6 bn
GLOBAL AVG.
$10.5 bn
Top 20 Global Ecosystem
Bang for Buck
Top 30 Global Ecosystem
Affordable Talent
5
Exit Growth
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Investor Activity
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Funding Growth
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Reasons to move your startup to Manila
Experienced Tech Talent and Young Workforce
The country’s well-established outsourcing industry, built around talent from Philippine universities and strong English-language skills, gives founders an experienced pool of employees to draw from.
Startup Support
The Philippine Innovation Act and the Innovative Startup Act provide funding and other forms of support for startup, micro, small and medium enterprises, as well as removing barriers to doing business.
COVID-19 Policy
The government announced a “Small Business Wage Subsidy Program” to help businesses retain their employees during the quarantine period by providing wage subsidies of up to $160 per eligible employee for 2 months. A $20 million Enterprise Rehabilitation Financing facility has been established to provide loans to qualified micro and small businesses. Other forms of support include subsidies for startup incubation and acceleration.
Startup Community
Startup Genome
Members
Startup Genome
Partners
Department of Science and Technology
Department of Information and Communications Technology
Intellectual Property Office of the Philippines
Small Business Corporation
National Development Company
Philippine Exporters Confederation, Inc.
QBO Innovation Hub
AIM-Dado Banatao Incubator
IdeaSpace Foundation
StartUp Village
Launchgarage
Brainsparks
Philippine Fintech Association
Fintech Alliance of the Philippines
Featured Articles from
Local Ambassadors
Katrina Chan
Innovation Hub Director at QBO Philippines
Would you like to be an ambassador in Manila?
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