2025 saw a continued acceleration in private capital deployment in the Philippines, with fintech remained the most active sector by deal count, Foxmont Capital Partners said in its recent report.

According to the report,the total capital raised in the country increasing 34 percent year-on-year to $1.5 billion in 2025.

This growth was driven primarily by a 144 percent increase in debt financing to $490 million, alongside continued, albeit more moderate growth in equity activity at 10 percent to $1.01 billion.

While total deal volume dropped, average deal size grew significantly, increasing 64 percent to just over $20 million, signaling a clear shift toward larger transactions and a more diversified mix of financing instruments.

While deal activity softened compared to 2024 for the third quarter, there was a similar trend in 2023, and momentum rebounded in the fourth quarter underscoring sustained investor appetite.

Deal value activity remained largely unchanged, with early stage deals under $5 million taking the majority of total deal activity.

Similarly, deal flow remained thin in the $10 million to $20 million range, with activity in the $40 million to $50 million bracket declining further in 2025.

In contrast, deals over $50 million gained traction, driven largely by private equity participation and debt deals.

“With stronger capital support at both ends of the spectrum, a persistent gap in financing and support remains for companies raising growth capital,

“As a result, there is a clear opportunity for investors and ecosystem builders to play a more active role in enabling this critical early growth phase,” said the report.

While fintech remained the most active sector by deal count in 2025, healthtech saw the largest increase in investment activity, reflecting rising focus on healthcare access and affordability in the Philippines, as highlighted in last year’s Philippine Venture Capital Report.

The urgency of this need is highlighted in Boston Consulting Group’s report entitled “The Filipino Family,” which found that 64 percent of Filipino families are unable to cover a hospital bill without borrowing or relying on insurance, with preparedness for health-related emergencies remaining a top household priority.

“Taken together, these factors help explain the continued momentum in healthtech investments throughout 2025,” said the report.

While growing, private capital funding the Philippines currently represents approximately 0.3 percent of gross domestic product (GDP), which leaves a lot of headroom for private capital
deepening.

By volume, local investors continued to drive around one fourth of total deal flow, while the number of deals where local and foreign investors jointly syndicated deals grew from 24 percent in 2024 to 35 percent in 2025.

Importantly, smaller transactions were more frequently led by local investors.

This pattern highlights the continued importance of local investors as deal originators that provide early conviction and catalytic capital, while foreign investors are important in driving scale as the business matures.

As seen in prior years, domestic participation in the $10 million to $50 million deals remains limited, presenting a clear opportunity for domestic investors and local institutional capital to play a larger role at the early growth stage.

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