Lesson 1 part 3 Flashcards
The Philippines’ startup ecosystem is still developing, and there might be a shortage of startups that have reached the stage where they are attractive investment opportunities.
Early-Stage Ecosystem
Investors heavily rely on networks and relationships to discover potential investments. Limited access to such networks can restrict the flow of promising deals.
Access to Networks
Investors might perceive the Philippines as a higher-risk market compared to more established startup hubs, leading to a cautious approach and fewer investments.
Risk Perception
The startup landscape might be fragmented, with startups spread across different regions and sectors, making it harder for investors to identify opportunities.
Fragmentation
Encouraging VC and PE Activities
Government Support
The government may offer tax incentives, grants, and subsidies to both local and foreign investors who support startups and businesses in strategic sectors
Incentives and Grants
The government often initiates programs to support startups and entrepreneurs. These programs can include funding opportunities, mentorship, and access to resources that help startups become investment-ready.
Startup Programs
Collaborations between the government, industry associations, and financial institutions can lead to the creation of funds specifically focused on VC and PE investments.
Industry Collaboration
Influence on VC and PE Industry Growth
Policy Impact
Policies that ease foreign investment restrictions and simplify regulatory processes can attract more foreign investors to the country’s VC and PE landscape.
Foreign Investment Regulations
Government policies that emphasize and incentivize innovation, research, and technology development can encourage the growth of startups and businesses in sectors that are attractive to VC and PE investors
Innovation and Technology Focus
Favorable policies that improve the ease of doing business, reduce bureaucratic hurdles, and streamline administrative processes can enhance the overall investment climate and attract more investors to the country.
Ease of Doing Business
Robust legal frameworks that protect investors’ rights and provide mechanisms for dispute resolution contribute to a more secure and attractive investment environment for both local and foreign investors.
Investor Protection
Policies that promote entrepreneurship education and awareness of alternative financing methods can increase the pool of investment-ready startups and entrepreneurs in the country.
Educational Initiatives
