The Global Startup Ecosystem Report (GSER) 2021 featured anew the Philippine startup ecosystem as it ranked among the top 30 Asian ecosystems in terms of performance.
The value of Manila’s startup ecosystem is at $584 million, with $101 million in total early-stage funding over the last 2.5 years.
Globally, affordable talent (or the ability to hire tech talent) is reported as the strength of the Manila startup ecosystem. Among Asian ecosystems, Manila ranked among the top 20 for Bang for Buck (or the amount of runway tech startups acquire), top 30 in knowledge (or the innovation through research and patent activity), funding, as well as talent and experience (or the access to talent by early-stage startups).
Department of Trade and Industry (DTI) secretary Ramon Lopez reaffirmed the agency’s commitment to improve the performance of the Philippine startup ecosystem as he lauded the startup community for its efforts for global recognition.
“We are moving forward in finalizing the structure that will allow us to maximize the utilization and effectiveness of the Startup Venture Fund (SVF) that we are allocating for the development of start-up venture in the country,” Lopez said.
The GSER 2021 identified fintech and e-commerce as Manila’s ecosystem sub-sector strengths. Amidst the pandemic, a number of fintech startups in the Philippines have managed to raise substantial funding.
Likewise, the ongoing community lockdown has accelerated the growth of the e-commerce industry in the country, with revenue estimated at over $5 million in 2021 and with market volume projected to reach $8.8 million by 2025.
According to DTI undersecretary Rafaelita Aldaba, the continued emergence of fintech and e-commerce startups in the Philippine market highlights the important role of the government in addressing market failures and creating an enabling environment which is crucial in developing a robust startup ecosystem.
“Despite setbacks due to Covid-19, startups remain a catalyst for innovation. Leveraging on our strengths, the Philippines will continue to support startups by reducing barriers to entrepreneurship and providing the right conditions to boost their entrepreneurial potential,” Aldaba said.
The Innovative Startup Act (ISA) provides the institutional mechanism for inter-agency collaboration and funding for the implementation of startup development programs.
The GSER is the world’s most comprehensive and widely-read research on startups with 250 ecosystems studied. The GSER 2021 is published by Startup Genome – a policy advisory and research organization for governments and public-private partnerships committed to accelerating the success of their startup ecosystem – in cooperation with the Global Entrepreneurship Network (GEN). The DTI is a member of the GSER Global Network.