Philippine startups face tighter funding in 2026

By Beatriz Marie D. Cruz, Reporter

PHILIPPINE STARTUPS face tighter funding conditions this year amid macroeconomic uncertainty, as investors demand clearer revenue models and growth strategies, analysts said.

“The Philippine startup landscape in 2026 will reward discipline, not hype,” Dan I. Siazon, managing partner and co-founder at Kickstart Ventures, said in an e-mailed reply to questions.

Investors are becoming more selective, prioritizing startups that show strong fundamentals, proven customer demand, recurring revenue, sound governance, and a clear path to scale, he added.

“There’s tighter funding for early-stage valuations, and late-stage capital could remain scarce, especially in the Philippines, where there have been no recent late-stage deals,” Mr. Siazon said.

Paulo Campos III, founding managing general partner at Kaya Founders, said startup funding may remain “broadly stable” but uneven this year.

“Our outlook for 2026 is cautiously optimistic,” he said in a Viber message. “We expect a selective but constructive funding environment, rather than a broad-based rebound.”

Mr. Siazon said startups expected to attract investor interest include those in health technology, business-to-business services, climate and energy solutions, and financial technology platforms.

However, political uncertainty in the Philippines could weigh on economic activity and pose challenges for both large industries and startups, he said.

“This adds to the necessity for startups to be built to last and have strong fundamentals,” Mr. Siazon said.

Mr. Campos said macroeconomic uncertainty and heightened governance scrutiny mean investors will continue to set a high bar for capital efficiency, unit economics and credible paths to profitability.

For startups, this translates into longer fundraising cycles and greater pressure to show discipline early, he said.

Alewijn Aidan K. Ong, assistant general manager for business development at state-run National Development Corp., said startups tied to construction technology could be affected by slower infrastructure spending linked to a corruption scandal.

“With the biggest infrastructure spender, the government, toning down expenditure due to the corruption scandal, some startups that are part of the value chain may be adversely affected,” he said in a Viber message.

Data from the Department of Budget and Management showed infrastructure spending fell 40.1% to P65.9 billion in October, amid a graft scandal involving flood control projects that has also dampened economic activity.

Gross domestic product grew 4% in the third quarter, the slowest in more than four years, weighed down by weak household consumption and reduced public infrastructure spending.

In the first half of 2025, startup equity funding in the Philippines dropped 55% to $86.4 million from a year earlier, according to a joint report by Kickstart Ventures and Singapore-based business news platform DealStreetAsia.