By Bernie Cahiles-Magkilat
The government is investing more than ₱3 billion including an initial ₱125 million from the National Development Co. (NDC), the investment arm of the Department of Trade and Industry (DTI), to give all-out support for the development of the country’s technology startups up to 2022.
This developed following yesterday’s signing of the Implementing Rules and Regulation (IRR) of the Innovative Startup Act otherwise known as the RA 11337. The IRR was signed by Trade and Industry Secretary Ramon M. Lopez, Science and Technology Secretary Fortunato dela Pena and ICT Secretary Gregorio Honasan.
Pena said they would require ₱3 billion for the development of 1,000 startups. This investment would include research and development for startups.
For NDC, Lopez said that NDC may start initially with ₱125 million for the first batch of 50 technology startups that could be matched with a private sector investors.
NDC can also invest further for a total of ₱250 million until 2022.
Aside from this funding, Lopez said the government will also create Philippine Startup Ecozones that will co-locate funders, co-investors and even special benefits that could be accorded to players not just fiscal but non-fiscal incentives, as well to spur the growth and development of startups and startup enablers.
Further, the three agencies will work with the Board of Investments (BOI) on a Startup Investment Development Plan (SIDP). This plan will develop short, medium, and long-term strategies to spur investment in, and promote the growth and development of startups and startup enablers in the country.
The three agencies will be in charge of a Startup Grant Fund (SGF) to provide initial and supplemental Grants-in-Aid (GIA) for startups and startup enablers that have passed the selection and application process.