Makati City Remains The Top Local Startup Destination But Lags Behind Neighboring Cities In Terms Of Deal Value
The stark majority of deal volume in the past three years originated from cities located in the National Capital Region (NCR) of the country.
Makati City, the country’s prime business district and financial hub, accounted for 29% of total deal volume in the country. This is closely followed by Taguig City at 22%, then by Pasig City and Quezon City responsible for 10% and 9%, respectively. Other cities within NCR include Mandaluyong City accounting for 7% of total deal volume, Manila City and San Juan City each with roughly 4%, and Muntinlupa City taking up 1%.
The country also continues to experience growth in startup activity in cities outside of NCR. Davao City accounted for 3% of total deal volume, followed by Cebu City at 2%, and lastly by Bacolod City and Baguio City at 1% each.
The distribution of deal value provides a different perspective. Mandaluyong City emerges as having the largest amount of funds raised, accounting for more than 60% of the country or approximately USD 335 million over the past 2.5 years, however this is primarily attributable to Voyager Innovations Inc. which is based in said city. This is followed by Taguig City, Parañaque City, Makati City, and Quezon City with USD 53 million, USD 52 million, USD 45 million, and USD 14 million, respectively.
Additionally, several startups located outside of the National Capital Region (NCR) were able to secure funding since 2018, bringing in a total of USD 11 million. However, 97% of this can be traced to companies based in Davao City making it the largest startup headquarter base in terms of deal size and volume outside of NCR for the period.