Manila has a Series B boom and a Series A funeral. Mynt’s record IPO won’t fix that

The Philippine venture capital scene in 2026 resembles a barbell, with extreme funding on both ends and a lack of financing for startups in the middle. Grant-funded prototypes and university incubators are at one end, while Series B and later rounds for profitable companies are at the other. The middle ground, where startups grow from early traction, has largely vanished.

According to Gobi Partners's Solo Horizons report, Series A deal value in the Philippines has dropped by 98 percent this year, while Series B value has surged by 795 percent and now accounts for roughly three-quarters of all capital deployed. Series C and beyond has also increased by 233 percent. This situation is not a funding winter in the traditional sense; money is still flowing, but it is bypassing startups that require US$2 million to US$5 million to hire sales teams and demonstrate product scalability.

While deal count decreased by 8.1 percent, deal value fell by 64.5 percent, and seed deal count doubled, even with smaller checks. The issue stems from regional factors, with Singapore absorbing 94 percent of disclosed Southeast Asian startup funding in the first nine months of 2026. International limited partners prefer Singapore's holding structures over companies incorporated in emerging markets.

Additionally, sector bias plays a role, with fintech accounting for 78 percent of Philippine deal value this year, up from 68 percent in 2025. This concentration of funding in one sector resembles private credit more than traditional venture capital. Moreover, pure-play AI-native startups raised less than one percent of national deal value, highlighting how AI is mostly entering Southeast Asian markets through established companies rather than standalone AI product companies.

The Mynt IPO, while significant, primarily benefits existing shareholders and conglomerates rather than funding Manila's AI startups. Public funding has increased, but the Startup Venture Fund is too small to make a substantial impact. To address the Series A gap, options include a government-endorsed convertible note to overcome legal uncertainties around SAFEs, angel tax breaks similar to South Korea's, and compute credits and research and development grants for AI developers testing products in regulatory sandboxes.