StellarPH x Foxmont: Ecosystem in motion and the future of the PH startup scene
To take a deep dive into where the Philippine startup scene is headed, StellarPH sat down with Foxmont Capital Partners—the first independent venture capital firm in the country and home to one of the most experienced investment teams in the region. Our founder, Pjotr Steinmetz, spoke with Bea Mantecon and Clara Elizalde, key members of the firm’s Value Creation team.
The timing couldn’t have been better. Foxmont had just released its Philippine Venture Capital Report 2025—a detailled overview at what’s shaping the local startup ecosystem, from sector surges to shifting consumer behavior and the trends that founders and investors alike should keep their eyes on.
Here’s what we learned from that conversation—insights, highlights, and future-forward takes included.
2024 Was a huge year for startup deals. What’s driving the surge?
Bea and Clara emphasized that this isn’t just a “good year.” The surge in deals is backed by strong economic fundamentals. The Philippine economy has seen steady growth, powered by rising GDP and a booming middle class that’s spending more—and spending smarter.
This environment has encouraged not only more startup launches but also stronger investor confidence across early and growth stages. “There’s been a healthy diversification too,” Bea shared. “It’s not just fintech and e-commerce anymore. We’re seeing momentum in cleantech, D2C, and other new sectors.”
When that kind of variety starts showing up in deal flow, it’s a strong signal that the ecosystem is leveling up.
Where are investors looking now?
Fintech remains a stronghold, but clean energy is quickly gaining traction.
“Filipinos have adopted digital financial tools at lightning speed,” Clara said. “Over half of payments are now done digitally, and more than 90% of internet users aged 16 and up are using online financial services. That alone is massive.”
On the clean energy front, government support and favorable regulations have sparked new interest. Filipino startups are stepping in with software-driven solutions in commercial solar, energy efficiency, and energy trading—sectors that were under the radar just a few years ago.
Foreign investors are joining the party. Why now?
International VCs are becoming more active in the Philippines, and several factors are driving the trend.
First, startups are maturing. “We’re finally seeing bigger, later-stage deals,” Clara noted. Second, the country’s digital-first population gives tech solutions a natural runway.
And finally, the combination of a growing middle class and relatively modest startup valuations (compared to regional neighbors) makes the Philippines a very attractive market.
Consumer behavior is shifting. How are startups responding?
As Filipinos climb the economic ladder, their purchasing habits are evolving. They’re after better quality and experience—without the premium price tag.
Startups like Niv Della and Pickup Coffee, both in Foxmont’s portfolio, are thriving in this space. “They’re offering specialty makeup and drinks at price points that feel attainable,” Bea explained. “It’s about delivering value in a way that resonates with everyday consumers.”
Healthcare is also gaining attention. What’s driving innovation?
Healthcare is a critical, underserved sector. From digitized medical records to AI-powered diagnostics, startups are stepping in to tackle long-standing challenges.
But Foxmont emphasized that funding alone isn’t enough. “These solutions need to be tested and scaled in real-world settings,” Clara shared. “That’s why partnerships—with hospitals, government agencies, and insurers—are so vital. They help startups refine what works and bring those innovations to more people.”
Let’s talk energy. How can startups make cower cleaner and more affordable?
Startups are key players—especially where tech meets infrastructure. While large-scale projects still require heavy capital, early-stage innovations can deliver high-impact improvements.
Take SolX, one of Foxmont’s portfolio companies. It provides energy management tools to over 100 businesses, helping them reduce power costs and operate more efficiently.
Other promising verticals include:
Renewable energy (solar and mini-hydro)
Sustainable transport (EV charging, smart batteries, mobility solutions)
Tech-driven energy access and optimization
As Bea put it: “We’re not talking future potential. We’re seeing results now.”
What about farming? Can startups help this vital industry evolve?
Agriculture remains a cornerstone of the Philippine economy, but systemic challenges persist. Foxmont sees big potential for startups in three key areas:
Financial Access – Micro-loans and weather-based insurance can help farmers grow and protect their businesses.
Technology – Better weather forecasting, precision agriculture tools, and platforms for direct market access can boost earnings.
Education – From training on disease control to climate-resilient farming, equipping farmers with knowledge is essential.
“There’s no one-size-fits-all solution,” Clara noted, “but the right mix of tech, training, and financing can move the needle meaningfully.”
Looking ahead: What’s the biggest opportunity—and challenge—for founders?
Biggest opportunity? The middle class.
“In just under a decade, the combined middle-income groups grew by 13%,” Bea pointed out. “That means rising demand for healthcare, financial services, agri-solutions, and energy access. Startups that build for this segment—thoughtfully and at scale—have a chance to win big.”
Biggest challenge? Talent.
As ventures move into niche sectors, the demand for specialized skills is outpacing the local talent pool. That’s where foreign investors can help—not just with capital, but with expertise.
“There’s a lot we can learn from experienced operators abroad,” Bea added. “Building a truly world-class ecosystem means investing in people just as much as products.”
A final note from StellarPH
At StellarPH, our mission is to inspire, educate, and empower the next generation of Filipino entrepreneurs—driving innovation and sustainable growth across startups, schools, and government.
We fully align with what Foxmont shared: the ecosystem is evolving fast, and now is the time to build. But progress won’t happen in isolation.
We’re not just supporting startups—we’re developing founders before they even exist. Through hands-on education, mentorship, and programs like PH100, we help young talents turn potential into real-world impact. We also co-develop innovative curricula with universities—integrating technology and entrepreneurship into higher education to prepare students for the startup world.
We invite more private sector leaders to get involved—through sponsorship, mentorship, or collaboration. Because building a world-class ecosystem takes all of us.
As Pjotr puts it:
“The insights we gained from Bea and Clara reaffirm what we’ve believed all along—the future of Filipino innovation is bright, but it will take collaboration, courage, and consistency to get there.”
Let’s build it—together.
