Manila climb up 20 spots in Emerging Startup Ecosystem ladder

Bucking Global Trends, Manila Moves Up 20 Spots in Emerging Startup Ecosystems List

Amid a global decline in ecosystem value, the Philippine capital continues to signal growing competitiveness as it moves up in the rankings of emerging global startup ecosystems, thanks to a strong showing in fintech, AI, and sustainability.

By Paul John Caña
Esquire Philippines
13 June 2025

Defying global trends, Manila continues to move up in the ranking of Emerging Startup Ecosystems, placing in the 61-70 bracket this year from 81-90 last year and 91-100 in 2023. 

According to the Global Startup Ecosystems Report (GSER) 2025 published by Startup Genome, a leading innovation ecosystem development organization, Manila generated $6.3 billion (about P352.35 billion) in ecosystem value between July 1, 2022, to December 31, 2024. This represents an impressive 35 percent compound annual growth rate (CAGR) in its ecosystem value compared to the period July 1, 2020 to December 31, 2022 (which covered GSER 2023).

Startup Genome defines ecosystem value as the sum of valuations of funded startups, including unicorns, plus the post- money valuation of exits in the past two and a half years. Essentially it is the measure of economic impact, calculated as the value of exits and startup valuations.

Sharing the 61-70 bracket in the ranking with Manila are the following cities: Lagos, Nigeria; Indianapolis, USA; St. Louis, USA; Chongqing, China; Athens, Greece; Hyderabad, India; Ho Chi Minh City, Vietnam; and Gothenburg, Sweden.

The GSER echoes the Venture Capital Report 2025 published by Foxmont Capital Ventures and Boston Consulting Group. That report found that, despite the generally quiet and subdued sentiment within the local startup industry, dealmaking activity in the Philippines actually reached record levels in 2024. Total funds raised by startups in the Philippines ballooned to $1.12 billion last year, up 16.6 percent versus the previous year’s $960 million and just slightly ahead of 2022, which was the previous record holder at $1.11 billion. 

Ranking in the GSER 2025’s Top 10 Emerging Ecosystems are the following cities (in descending order): Wuxi, China; Jakarta, Indonesia; Istanbul, Turkey; the Research Triangle (a region in North Carolina that includes Raleigh, Durham, and Chapel Hill), USA; Copenhagen, Denmark; Salt Lake and Provo, Utah; Barcelona, Spain; Dublin, Ireland; Nanjing, China; and Greater Lausanne, Switzerland.

Unlike the main list that ranks the top global startup ecosystems in the world, emerging ecosystems are startup communities at earlier stages of growth. Startup Genome says the methodology for ranking the Top 100 Emerging Ecosystems is designed to reflect this disparity, “showcasing the ecosystems displaying high potential to become top global performers in the coming years.”

Manila also figured highly in other categories in GSER 2025, including making it to the Global Top 15 (and No. 4 in Asia) in Bang for Buck (which measures the amount of runway tech startups acquire, on average, from a VC round); Global Top 30 (and Top 15 in Asia) in Affordable Talent (which measures the ability to hire tech talent); Top 25 in Asia in Funding (which measures innovation through early-stage funding and investor’s activity); Top 30 in Asia in Performance (a measure of the size and performance of an ecosystem based on the accumulated tech startup value created from exits and funding); and Top 30 in Asia in Talent & Experience (which measures long-term trends over the most significant performance factors and the ability to generate and keep talent in the ecosystem). 

“The Philippines demonstrates consistent performance in advancing innovation and digital transformation,” said Department of Trade and Information Secretary Cristina Roque. “As the lead agency supporting enterprise development, DTI ensures the country’s competitiveness and future-readiness by nurturing entrepreneurs and cultivating tech-driven solutions.

“This progress directly reflects the leadership of President Ferdinand R. Marcos Jr. and our commitment to the Bagong Pilipinas agenda, which champions inclusive, innovation-led growth and positions the Philippines as a hub for next-generation industries,” the trade chief added.

What’s driving startup growth in Manila

According to the report, the following sectors drove significant growth in startups in Manila and are therefore key strengths in the Philippines’s startup ecosystem: Fintech, Artificial Intelligence, and Sustainability.

“These sectors are supported by targeted government funding, regulatory strategies, and rapid digital adoption,” the report said. “In 2023, fintech firms secured major funding rounds, AI integration expanded across 100+ startups, and sustainability-driven ventures grew sixfold since 2020, aided by national programs like the Innovative Startup Act and Green Economy Programme in the Philippines.”

Startups are also choosing to set up shop in Manila thanks to a young, tech-oriented talent pool, driven largely by the Philippines' approximately 350,000 STEM graduates annually. The country, through the Board of Investments, is also teaming up with tech experts to future-proof the critical and foundational skills in engineering and technology of the Filipino workforce. 

“Recent policy reforms, including the CREATE MORE Act and the Philippine Innovation Act, strengthen fiscal incentives and regulatory support amid rapid digital market growth projected to reach up to $150 billion by 2030,” the report said.

In its highlight of Manila, the GSER said Philippines currently has approximately 1,200 startups, 65 incubators and accelerators, 55 venture capitalists, and 210 coworking spaces.

“Manila thrived despite the venture capital winter, as it reached a total of $2.4 billion VC funding and an exit value of $258 million from 2020 to 2024,” the report said. “The Manila ecosystem proactively catalyzes growth and attracts more domestic and foreign investments, with the establishment of startup hubs and hosting of startup conferences, like the annual Philippine Startup Week.” 

Top 10 Global Startup Ecosystems 2025

Startup Genome’s main list of Global Startup Ecosystems was once again topped by Silicon Valley in the US, followed by New York City, London, Tel Aviv, Boston and Beijing (tied), Los Angeles, Seoul, Singapore, and Shanghai. 

Just beyond the Top 10 are the following cities: Shanghai, Tokyo, Paris, Philadelphia, Bengaluru-Karnataka, Seattle, Chicago, Shenzhen and Washington DC (tied), San Diego, and Toronto-Waterloo and Amsterdam-Delta (tied).

Produced annually by Startup Genome, the GSER delivers fresh insights on the world’s leading innovation ecosystems, highlighting key trends, investment flows, and policy strategies driving entrepreneurial success.

“With its impressive rise in the rankings over the past three years, Manila is strengthening its profile as a dynamic emerging ecosystem in Asia,” said Stephan Kuester, Managing Partner at Startup Genome. “We are honored to partner with the Department of Trade and Industry, whose targeted support continues to align with and accelerate the ecosystem’s development trajectory.” 

“The global startup landscape is undergoing its most dramatic shake-up in years, with Asia and Africa surging ahead while much of Europe falters,” the report says. “Within the 2025 Top 40 Global Startup Ecosystem ranking, 16 ecosystems have moved up in rank while 18 have declined.”