Startup companies are on the rise in Philippines, with digitalisation taking place across the country.
In a recent report by BusinessMirror, Philippines's Department of Trade and Industry (DTI) is planning to launch a $5.1 million venture fund this year to invest in the growth of startup companies.
Funding for R&D and Marketing
The new fund will focus on supporting product research and development (R&D), as well as assisting startup companies with their marketing/sales efforts.
Funding for each startup company varies, and will range between $100,00 to $500,000 per company.
While guidelines for the fund are currently being finalized, it is highly likely that funding will be in the form of equity financing.
Aldaba added that the draft guidelines for the venture fund are currently being finalized. “We will be providing equity financing through the startup venture fund to qualified innovative startups that have high-growth potential”, mentioned Rafaelita M. Aldaba, Trade undersecretary for competitiveness and innovation.
DTI to establish a funding committee
This new move by the government is in line with the country's Innovative Startup Act that was introduced in 2019 to further accelerate the rise of Philippines startups.
To oversee the entire process, DTI along with the Department of Science and Technology will establish a new fund committee.
The government is also working to establish a Startup Business One-Stop Shop, a portal for people to obtain the latest information on the startup ecosystem, as well as facilitate end-to-end registration of startup companies.
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