The recently released Gobi-Core State of Talent in Tech 2022 report examines the current state of the Philippine tech ecosystem alongside the challenges and opportunities it is set to face in the future. The report compiles data on investments in Philippine startups, what sectors are driving growth, the state of Filipino tech talent, and even a section dedicated to gathering insights from tech founders, leaders, and ecosystem veterans.
The report was released by the Gobi-Core Philippine Fund, a joint venture between Pan-Asia venture capital firm Gobi Partners and Manila-based capital firm Core Capital. The research found in the report is comprised of a combination of Gobi-Core analysis, industry sources, and publicly available data.
Among the key findings in the report is the confirmation that new digital habits are here to stay even in the face of a return to pre-pandemic mobility and routines. For example, the Philippines’ total electronic banking transaction value is anticipated to shoot past $1.3 trillion for FY2022—10x what it was before the pandemic.
The staying power of these digital habits is expected to drive the growth of a new crop of entrepreneur-led startups in the country. Funding for these startups has already gained steam: the total number of funds raised for Philippine entrepreneur-led startups in 2022 now exceeds $500 million, doubling the amount raised last year.
Yet the report also emphasizes the key role talent plays in the Philippine tech ecosystem by stating that ‘entrepreneurs and their teams are the lifeblood of every startup ecosystem’. For the most part, startups are led by entrepreneurs with key experience under their belt: 71% of startups that have raised over $500,000 in venture funding have at least 1 founder with previous tech/startup experience. Similarly, 75% of founders who have raised over $500,000 in venture funding had at least 10 years of professional experience.
Of course, founders will also need talent working with them. With more entrepreneurs building tech and tech-enabled businesses, tech talent has become increasingly sought-after in the Philippines—giving way to concerns that the supply cannot meet the demand. This is especially considering that the number of tech and engineering graduates in the Philippines has remained stagnant from 2016 to 2019. The report estimates that school closures between 2020 and 2021 have only exacerbated the situation.
Solving the gap between talent supply and demand is crucial given that emerging sectors such as logistics, media, gaming, and entertainment are expected to fuel further demand for talent in the near future.
It’s hoped that growing tech talent will be easier with the entry of the digitally native Gen Z into the job market. Gen Z, defined as those from age 10-25 who grew up with the internet and mobile phones from childhood, are estimated to now make up 40% of new members of the labor force in 2019-2021.
Several key industry leaders interviewed for the report also expressed hopes Philippine startups can help hone the country’s tech talent. Some also pointed out pre-existing best practices already helping Philippine talent grow.
Edtech startup Eskwelabs CEO and Co-Founder Angela Chen cited Eskwelabs’ partnership with Accenture and the Asian Institute of Management-Dado Banatao Incubator as a benchmark for talent development. “[The partnership came up with the] ‘Innovate with Data’ program, which provided tech apprenticeships to our data science and analytics Bootcamp students who are seeking new careers,” said Chen. “I believe the apprenticeship model adapted for tech roles is an innovative yet reliable model.”
ChatGenie CEO and Co-Founder Ragde Falcis called for collaborations across the local tech ecosystem in order to build up the country’s talent pool. “This requires a collective effort between the tech companies in the ecosystem. Every tech company founded by people with a solid technical background should design its own low-touch and low-effort model for its tech talent development framework,” said Falcis.
The full Gobi-Core State of Talent in Tech 2022 report can be downloaded at the following link: https://corevc.ph/gobi-core-philippine-fund-releases-the-state-of-talent-in-tech-2022/.