At the recently concluded “6th Geeks on A Beach” (GOAB 2023), held in Bohol, the Department of Information and Communications Technology (DICT) emphasized the need to boost the startup ecosystem in the country.
To achieve this, the DICT is creating opportunities for both emerging and established startups. The government agency introduced the Digital Startup Development and Acceleration Program (DSDAP) as part of its comprehensive strategy.
The Philippines is making strides in the startup ecosystem having been ranked 59th globally in the “Startup Blink Report.”
PH startups aiming for $1 billion in funding at GOAB 2023
IdeaSpace Foundation to support six startups in accelerator program
“We also have been noted by the World Bank as having one of the most dynamic economies in East Asia and the Pacific Regions,” said DICT Undersecretary for ICT Industry Development, Atty. Jocelle Batapa-Sigue (in photo).
Sigue noted that these indicators “should be reinforced with strong support not just from the government (both local and national government units) but also from other sectors like the academe, and the private sector.”
One of the key projects of the DSDAP is the Philippine Startup Challenge (PSC), an annual startup pitching competition that aims to encourage and support Filipinos in creating innovative and relevant ICT products and services that can be developed into viable business ventures and/or solve social problems.
DICT startup projects
“This challenge (PSC) hopes to promote the spirit of entrepreneurship in ICT [information and communications technology] among the Filipino Youth and to ensure the continuous flow and creation of ideas and startup founders that will expand the country’s startup ecosystem,” Sigue said.
The 8th iteration of DICT’s initiative saw 626 applications from 158 schools and universities nationwide, with the top 10 startups gearing up for the final showdown in December 2023 in Cebu City.
DICT’s commitment to fostering potential global players among startups is evident in this year’s allocation of funds, coaching, and mentoring through the Startup Grant Fund. This fund, devoid of equity claims, empowers Philippine startups by providing financial support and vital information to propel them to an “investible level,” appealing to international venture capitalists.
Sigue clarified that the Startup Grant Fund offers substantial financial aid, ranging from P500,000 to P1 million, along with mentoring, coaching, and networking opportunities throughout the project duration. Eligible startups span those in the proof-of-concept to prototype phase or those transitioning from prototype to minimum viable product stage.
Investors
Expressing interest in the grant, 94 startups have submitted applications, signaling the thriving ecosystem. Records reveal over 1,000 active startups, 60+ incubators, 200+ co-working spaces, 50 angel investors, and about 40 venture capitalists in the Philippine startup landscape.
Startups, defined by their innovative tech-driven solutions, navigate the early stages emphasizing innovation, design, prototyping, and testing, often without a revenue stream. Unlike conventional businesses, startups forge new business models.
Over the past decade, the Philippine startup scene has seen gradual enhancements, witnessing increased interest and investment, possibly accelerated by the pandemic’s push for digital transformation.
The investment in Philippine startups surged in 2021 to US$858 million, surpassing the combined total of US$803 million from 2018 to 2020, showcasing a growing trajectory.