Report: The Philippines Is the Fastest Emerging Startup Hub in the World
The future is bright for startups. And we’re saying this not just because it's helping drive the growth of the economy through the creation of new jobs. With emerging technologies such as artificial intelligence, startups now have more opportunities to cater to the changing needs of consumers.
The Philippines is just one of the many countries strengthening its startup ecosystem. As things stand, it is now the fastest to do so across the world, according to experts from startup and innovation hub Brainsparks. This brings the Philippines closer to becoming the prime market for startups, promising potential and additional funding opportunities.
"The growth we are seeing in the Philippine startup ecosystem is encouraging for both startups and venture capitalists," Brainsparks co-founder Artie Lopez said. "There are immense opportunities for innovation and entrepreneurship. Our startups are becoming more competitive in the region."
Recent figures showed Manila’s startup ecosystem is valued at $6.4 billion (about P375 billion) as of the second half of 2021 to 2023—almost double the previous $3.5 billion, though still far from the global average of $29.4 billion. One key player said to be behind the significant growth is technology. As startup ecosystem platform e27 cited, the Philippines is a "thriving" hub for tech companies, with plenty of businesses banking on the digital revolution.
What the local startup scene needs to keep the momentum are steady support sources. These may be provided by helping raise funds and coming up with policies to encourage foreign investments—meaning, the government should be at the forefront of such efforts, as mandated by the Innovative Startup Law.
"The government is cognizant of the importance of its role in sustaining this growth," Karl Pacolor, chief of innovation and collaboration at the Department of Trade and Industry (DTI), said. "We are employing a whole-of-government approach to ensure we will continue to tread on an upward trajectory. Part of that goal is to ensure that the momentum of the Philippine startup ecosystem is not just sustained, but also expanded to other parts of the country."
The Philippines has likewise been making strides in innovation, ranking 56th in the Global Innovation Index last year. This is a jump from 100th place way back in 2014. The country aspires to enter the top 50 within the next four years.
Brainsparks is a startup incubator—or an organization that helps develop business ideas—in the Philippines. It collaborates with key players to develop effective solutions for startups, whatever stage these firms may be. The company’s current portfolio consists a total of 27 startups.
Brainsparks, along with e27, will hold the first Philippine edition of Echelon, a tech and startup business conference, from September 26 to 27 at the SMX Convention Center in Pasay City. The event will feature startup leaders, entrepreneurs, and investors to share insights on the trends and opportunities for those aspiring to start businesses and companies.
"The Philippines is an ideal location for the tech community to flourish. We want to put the spotlight on the Philippines and create more opportunities for everyone through Echelon Philippines 2024," said e27 co-founder Thaddeus Koh.
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