Southeast Asia’s startup ecosystem saw weaker equity investment in the first half of 2025, but the Philippines showed resilience despite the regional slowdown.
According to the SEA Startup Funding Report H1 2025 released by DealStreetAsia in partnership with Philippine-based corporate venture capital firm Kickstart Ventures, total equity investment across the region fell 20.7% year-on-year to $1.85 billion from 229 transactions. This marks the lowest deal value and volume in six years.
However, Philippine startups raised $86.4 million, slightly higher than Indonesia’s $78.5 million. This is the first time the Philippines edged past Indonesia in terms of funding raised during a half-year period.
“The numbers reflect a cautious environment shaped by macroeconomic headwinds and heightened scrutiny of governance standards,” said Joan Yao, general partner of Kickstart Ventures. “Against this backdrop, the Philippines is well-positioned to move from the sidelines to center stage by leveraging its bright spots and strengthening investor confidence,”
The report noted that capital deployment in the second quarter of 2025 more than doubled compared with the first quarter ($1.28 billion versus $0.58 billion), even as deal volumes stayed low.
“The impact has been evident across all stages, from compressed seed valuations to prolonged timelines for growth- and late-stage rounds, underscoring how pervasive the reset in risk appetite has become,” said Andi Haswidi, head of data research at DealStreetAsia.
Fintech remained the largest sector in the Philippines, with neobank Salmon securing the country’s biggest deal in the period at $28 million. Other sectors such as health, food and beverage, and retail technology also attracted investment.
“Late-stage deals remain scarce in the Philippines, as elsewhere in the region, an opportunity in Kickstart’s view. Investors are favoring early momentum and founder grit, making their role even more critical in backing strong teams early and helping them scale into regional players,” Yao said.
The report also highlighted the emergence of new unicorns in the region. Malaysia’s Ashita Group raised $155 million at a unicorn valuation, Singapore’s Thunes secured $150 million at a \$1.42 billion valuation, and digital asset bank Sygnum reached a $1 billion valuation. In total, 58 Southeast Asian startups have now achieved unicorn status.
Sector trends showed fintech maintaining its lead but at its weakest level in six years. Health-tech rebounded, while green-tech recorded 20 transactions despite a drop in overall value. Climate-related sectors such as renewable energy, waste management, and low-carbon mobility also drew steady investor interest.
Despite the weak half-year, the report suggested signs of stabilization in the region, pointing to the rebound in funding in the second quarter.