Metro Manila on list of top startup ecosystems globally

Metro Manila made it to the list of the top 100 emerging startup ecosystems in the world, according to the Global Startup Ecosystem Report (GSER) 2020 of Startup Genome.

Startup Genome’s report showed Metro Manila was in the 31-40 rank in the top 100 list.

Other cities in the 31-40 ranking are Houston (US), Mexico, Lyon (France), Columbus (US), Charlotte (US), Nanjing (China), Indianapolis (US), Xiamen (China), and Bogota (Colombia).

The GSER 2020 report said Metro Manila’s startup ecosystem is valued at $1.6 billion, with a total early stage funding of $102 million over the last two-and-a-half years.

Among Metro Manila’s strengths as a top emerging startup ecosystem identified by the report are its market reach, as well as access to talent. These strengths have placed it among the top 20 ecosystems for bang for buck and among the top 30 ecosystems for affordable talent.

The report also said fintech and e-commerce are both growing in Metro Manila.

Of its startups, almost 15 percent are fintech companies, with a transaction value reaching approximately $10 billion last year and expected to grow by 24 percent this year, even with the impact of the coronavirus disease 2019.

E-commerce, meanwhile, is increasing at a CAGR (compound annual growth rate) of 26.4 percent, one of the fastest in Southeast Asia.

GSER is the most comprehensive and widely-read research on startups, whileStartup Genome is the top research and policy advisory organization for governments and public-private partnerships committed to accelerating the success of their startup ecosystem. Commenting on the report, Trade Secretary Ramon Lopez said in a statement, the DTI is committed to sustaining the growth of the startup ecosystem in Metro Manila and the whole country both during the pandemic and beyond.

“We continue to implement enabling policies and strategic support programs for enterprises, particularly as we aggressively promote the digitalization of business operations and the digital transformation of our MSMEs (micro, small and medium enterprises) and large enterprises,” he said.

Trade Undersecretary Rafaelita Aldaba said the proliferation of fintech and e-commerce startups in the country shows the abundance of opportunities in the Philippine market.

“By mutually reinforcing one another, these two sectors are enabling the growth of traditional sellers and buyers despite today’s trying times.

Our young, creative, and resourceful pool of talent will keep our ecosystem vibrant and competitive in the years ahead,” she said.

Through the Innovative Startup Act, the DTI with the Department of Science and Technology and the Department of Information and Communications Technology would work to facilitate more collaboration among members of the startup community, support the scaling up of startups, and promote their global expansion.

“We strongly believe that Filipino startups can compete globally, especially with the right collaborators. We are constantly looking out for the chances to showcase the solutions and services they can offer to meet market demands and address social needs. We look forward to seeing our startups grabbing the attention of more mentors and investors as we promote them in the world market,” Aldaba said.