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The Most Active
In Terms of Deal Count

November 23, 2020

  •   2 min read

Incubators, Corporate Venture Capital Arms, And Early-Stage Venture Capital Firms Are The Most Active In Terms Of Deal Count…

From 2018 to 1H2020, early-stage is the most prevalent form of funding, taking up 49% of deal count at 52 deals. After early-stage funding, incubators ascribe to 18% of deal activity, followed by corporate venture capital at 8%.

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Note that early-stage covers Seed to Series C and includes two additional deals disclosed as early-stage with no specified investment round. The illustration below also does not include certain funding deals such as crowdfunding or grants.

…But Private Equity Deals Take Up The Lion’s Share Of Startup Investments By Deal Value.

In terms of startup deal value, private equity funding takes up 63% of the total between 2018 to 1H2020, followed by Series A funding at 11%, and Seed funding at 9%. It is interesting to note that private equity investments, though few and far between, contribute the bulk of invested capital because of the sheer size of each deal value. This explains why the year-on-year total investment values in the Philippines vary substantially.

Despite this, the Philippine startup ecosystem continues to mature with smaller rounds, from incubator to Series B, contributing an increasingly larger share to the overall result for the period. The Seed round, which is the largest round by deal count and third to private equityby deal value, has shown exceptional growth. From USD 5.7 million in total value contributed in 2018, the Seed round has grown to USD 20.4 million in 2019 and to USD 24.0 million in the first half of 2020. Seed investments went from contributing only 2% of total deal value in 2018 to 14% in the first half of 2020.