Module 2: The Philippine Startup Ecosystem Flashcards
is a young company that innovates technologies or applies existing technologies in innovative ways to provide a new product or service.
Startup
Creation and application of new or improved technologies.
Innovating technologies
It encompasses a range of institutions, policies, people, and businesses that can support the development of tech startups.
Ecosystem/ Startup Ecosystem
Key Components of the Ecosystem
(1) Government Policies and Programs
(2) Financing Investment
(3) Incubators and Accelerators
(4) Human Capital
(5) Digital Infrastructure
2000s
Philipine Startup Ecosystem began to develop
2010s
New policies and programs to aid startups
2012
Corprate incubatorsKickstart and Ideaspace began funding startups
2015
Government launched the Philippine Roadmap for Digital Startups
2018
Three key department ssigned a memorandum to provide startups assistance (1) DOST, (2) DICT, and (3) DTI
2019
First Philippine Starups Week
2020
Startups help sustain economic activity during pandemic
2021
DTI launched the National AI Strategy Roadmap and a total of 858 million dollars was invested in Philippine Startups
Key Developments between 2014-2021
(1) Philippine rose from 100th to 51st in the Global innovation Index
(2) Philippines ranks 4th out of 34 lower-middle income economies included in the Global Innovation Index
(3) Philippines is among the world’s top 30 countries in knowledge and technology input.
Key Sectors of Philippine Startup
(1) Agriculture (Agritech)
(2) Education (Edtech)
(3) Environment (Cleantech)
(4) Healthcare (Healthtech)
leverage technology to improve farming practices, increase crop yields and, enhance agricultural productivity.
Agricluture (Agritech)
utilize technology to enhance learning experiences, provide access to educational resources, and improve educational outcomes.
Education (Edtech)
develop and deploy clean and sustainable technologies to address environmental challenges and promote eco-friendly solutions.
Environment (Cleantech)
innovate in healthcare delivery, diagnostics, patient care, and wellness using technology to improve access, efficiency, and outcomes.
Healthcare (Healthtech)
- Enacted in April 2019
- an act adopting innovation as vital component of the country’s development policies to drive inclusive development, promote the growth and national competitiveness of Micro, Small and Medium Enterprises (MSMEs), appropriating funds herefore, and for other purposes
Philippine Innovation Act (RA 11293)
Importance of Philippine Innovation Act (RA 11293)
(1) Boosts National Development
(2) Support MSME growth
(3) Enhances National Competitiveness
(4) Additional Positive Impact
- signed in to law last April 26, 2019
- an act providing benefits and programs to strengthen, promote and develop the Philippine startup Ecosystem.
Innovative Startup Act (RA 11337)
any person or registered entity in the Philippines which aims to develop an innovative product, process, or business model
Startup
include startup accelerators, incubators, co-working spaces, investors, funders, event or meet-up organizers catered to startups, and other support organizations.
Startup enabler
Main initiatives of Innovative Startup Act
(1) Simplified registration process
(2) Tax breaks
(3) Funding Assitance
(4) Regulatory Exemption
(5) Membership and Training Programs
was cited as one of the challenges of startup governance.
Interagency coordination
Most of the programs under _____ and ______ are focused on assisting early stage startups ….
DOST and DICT
provides funding for Philippine inventions and innovative works, up to ₱12.5 million per project, under a sharing scheme with DOST.
Landbank’s I-tech Lending program
aids local governments in transitioning to modern technologies in various sectors.
Landbanks’s SMART in City Development Lending Program
is a major funder of small enterprises, approving over 20,000 loans for pandemic-affected businesses in 2021
SBCorp or Small Business Corporation
Challenges for Tech Startups
(1) Documentation and Collateral requirements
(2) Complex application processes
(3) Lengthy approval periods
(4) Tech startups perceive loans as risky
Venture Capital Characteristics
(1) Presence of Venturap Capital firms
(2) Investment focus
(3) Challenges for Entrepreneurs
(4) Foreign investment
(5) Investment structure
(6) Funding distribution
Financing Investment: Issues, Challenges, and Risks
62% Lack of Access to Capital
54% Regulatory environment/requirements
27% Development of new products and services
helps a startup develop its ideas into a viable business by providing advice and training, resources, and access to markets and investors
Incubators
aim to fast-track the growth of startups that already have a proven product-market fit. Provide consultation, mentoring and networking, and assistance in accessing funding, markets, and investors.
Accelerators
Benefits of Joining an Incubator or Acclerator
(1) Access to customers/partners
(2) Technical know-how/mentoring
(3) Access to funding
(4) Mental health/community support
(5) Subsidies services (legal, administration, accounting)
How many are incubators and accelerators in the Philippines?
35
The prominent incubator in the Philippines
QBO Innovation Hub
Specific Government Departments
(1) DOST
(2) DICT
(3) DTI
DTI Program for early stage startups that have a minimum viable product for commercialization.
Incubation Development and Entrepreneurial Assistance (IDEA)
DICT program that provides funding to startups involved in agriculture, aquatic, and natural resources. Qualified startups are entitled to receive as much as as P5 million to implement their proposal within 1 year.
Startup Grant Fund
DOST program that provides funding for early stage ICT based startups. Qualified startups receive a grant of between P500,000 and P1 million.
Startup Grant Fund
is the foundation of any connected business. It enables success, powers transformation and connects people around the world.
Digital infrastucture
Examples of Digital Infrastructure
- Mobile telecommunications
- Data centers
- Communications satellite
- Network
- Platforms
- Applications
is the fundamental shift in the culture, mindset, and processes of an organization in technology use. The ultimate goal is to improve productivity and performance to remain competitive in a rapidly changing and increasingly digital market.
Digital transformation
encompasses more than just technical skills. It involves the knowledge, skills, and perspectives necessary for individuals to navigate an increasingly digital world.
Digital literacy
is the largest committed private investors network in the Philippines that was formed to support the country’s startup ecosystem by connecting investors with promising early stage companies.
Manila Angels Investors Network
