PHL is ‘most exciting’ venture capital market in Southeast Asia
By Beatriz Marie D. Cruz, Reporter
THE PHILIPPINES is the “most exciting” market for venture capitalists in Southeast Asia due to its young workforce and strong macroeconomic fundamentals, according to local venture capital firm Kaya Founders.
“The Philippines is now the most exciting venture ecosystem because of our young population, steady economic growth for the last 20 years and its rapidly digitalizing workforce,” Paulo Campos III, founding managing general partner at Kaya Founders, told BusinessWorld on the sidelines of Sinigang Valley’s BUILD Startup Festival on Tuesday.
The Philippines replaced Singapore and Indonesia, which have been the darlings of venture capitalists for a long time, he added.
Many young Filipinos are interested in working in a startup, Mr. Campos said, citing conversations he’s had with students in schools and universities.
“Our view at Kaya Founders is we’re in a very unique window of time where the next generation of companies will be born in our country over the next few years,” he said in a speech at the event.
The Philippines has one of the youngest working populations in the region that will peak by 2051, according to the ASEAN+3 Macroeconomic Research Office.
Analysts have cited the need for the Philippines to use its young workforce to bolster economic growth.
Mr. Campos also noted the potential of the Philippine digital economy, which is projected to grow to as much as $150 billion in gross merchandise value by 2030 from $31 billion last year, according to Google, Temasek Holdings and Bain & Co.
Despite this, having a predictable business environment remains a key challenge in the Philippines’ startup ecosystem.
“If you contrast what it takes to start a business here compared with Singapore or somewhere else, it’s really night and day,” Mr. Campos said, citing complex regulations and tax rules.
Mr. Campos said the government, private sector and investors should create a “welcoming environment” for startup founders to take risks.
The Philippine startup ecosystem raised $1.12 billion in 2024, a 16% jump from a year earlier, according to the latest Philippine Venture Capital Report by the Boston Consulting Group venture capital fund Foxmont Capital Partners.
