Philippine startups are expressing caution as they brace themselves for a potentially challenging funding landscape in 2024, according to a study conducted by Uniquecorn Strategies. The research revealed that the average optimism outlook on funding opportunities among the 23 startup leaders surveyed scored just 2.65 out of 5, a result the firm characterized as pessimistic. This sense of caution can be attributed to a significant 40% decline in local startup investments reported by Core Philippine Fund in the previous year. The ongoing impacts of the pandemic on the economy have led startup founders to navigate a delicate balance between their growth aspirations and the harsh realities of obtaining funding.
Uniquecorn Strategies’ founder and CEO, Dean Bernales, highlighted the persistent economic challenges caused by the pandemic when discussing the survey results, stating, The pandemic’s lingering economic impact continues to shape strategic decisions, with founders navigating a tightrope between growth aspirations and the harsh realities of funding.
The study also showed a lack of confidence among startup founders regarding their company valuations for 2024. In assessing their own startups, respondents gave an average score of just 2.65 out of 5, indicating their apprehension about valuation prospects. In response to these trends, 75% of founders have prioritized profitability over growth as a means of reducing their dependency on investor funding. Over the next 12 months, 70% of respondents identified profitability as their top priority, while 55% focused on improving customer experience and product development.
Despite the somewhat bleak outlook, Uniquecorn Strategies found a silver lining in the results. The study revealed that 55% of founders expect their startups to become profitable within the next one to two years. Furthermore, 20% of the respondents have already achieved profitability, and 60% have plans to expand internationally.
Bernales highlighted the founders’ proactive approach in the face of funding and valuation challenges, stating, While the immediate challenges in funding and valuation are evident, the founders’ focus on profitability and expansion indicates a proactive approach to navigating the complexities of the current economic climate.
The Philippine startup ecosystem, while cautiously managing the current funding climate, remains hopeful for a positive turnaround as businesses adapt and explore new avenues for profitability amidst challenging circumstances.
