The National Development Company (NDC), the investment arm of the government, will start providing equity financing to qualified innovative startups with high growth potential to further support the development of the Philippine startup ecosystem.

Trade and Industry Secretary Ramon M. Lopez said the NDC financing is part of the five new development programs that will be implemented in the coming by the agency to further strengthen the startup ecosystem in the country. He announced the DTI’s five new development programs at the PH Startup Week 2020 Virtual Conference.

According to Lopez, the NDC financing called Startup Venture Fund (SVF) is specifically intended to support the startup’s expansion, plant and/or facilities establishment or improvement, as well as product manufacturing, sales, and marketing.

Lopez did not reveal the amount of fund to be allocated by NDC, but said “The SVF will prioritize startups promoting MSME digitalization and enterprise digital transformation, including mitigating the impact of COVID-19.” NDC’s mandate is to invest in diverse industries, serving as an effective catalyst for inclusive growth. It is attached to the DTI and chaired by the DTI secretary.

Another DTI program is the Strategic MSMLE and Startups (SMART) Link Program, which was launched at the same PH Startup Week 2020 event. SMART Link will connect micro, small, medium, and

large enterprises (MSMLEs) with startups or digital enterprises that can provide digital

solutions for their operations.

Also, the DTI will roll out the Startup Acceleration and Incubation with DTI (StartupAID) Program, which will provide startups with customized development programs.

In addition, Lopez said the DTI is preparing the International and Local Exposure Assistance Program (ILEAP), which will assist startups and startup enablers in participating in local and international startup events and expos. Fourth, we are also working to implement a Global Acceleration Program (GAP), which will immerse our startups in the global ecosystem to enable them to pursue global business development, fundraising, and other strategic opportunities.

Lastly, the DTI will be establishing—in coordination with the Anti-Red Tape Authority —the Startup Business One Stop Shop (SBOSS), where end-to-end registration of startups can be facilitated. SBOSS will contain all information on the legal and regulatory processes involved for a startup in accordance with RA No. 11032, or the “Ease of Doing Business and Efficient Government Service Delivery Act,” as well as other related laws.

“These programs will complement those of the Departments of Science and Technology and Information and Communications Technology as we collaborate on implementing Republic Act (RA) No. 11337, or the Innovative Startup Act,” said Lopez.

It could be recalled that the inaugural ranking of the world’s top 100 emerging ecosystems by Global Startup Ecosystem Report (GSER) by Startup Genome, Manila is ranked 36th globally. The GSER 2020 puts the value of Manila’s startup ecosystem at US$1.6 billion, with a total early-stage funding of US$102 million over the last two and a half years. It is among the startup ecosystems in their activation phase, together with Busan in Korea, Calgary in Canada, Frankfurt in Germany, and Taipei in Taiwan.

Apart from our existing strengths in fintech, the GSER also recognized the Philippines as a dynamic e-

commerce hub, which is an emerging sub-sector strength of our startup ecosystem. With domestic consumption driving our economy, the Philippines will be a key market for e-commerce, which is growing at a Compound Annual Growth Rate (CAGR) of 26.4 percent. This is one of the fastest growth rates in Southeast Asia.

Another report by the European Center for Digital Competitiveness, the Digital Riser Report 2020, recognizes the Philippines as the top Digital Riser in East Asia and the Pacific. This report, which analyzes and ranks the changes in digital competitiveness of nations in the last three years, cited the Philippines for their initiatives expected to have a positive impact on their startup community.

“As our startup community keeps on growing with more incubators, accelerators, venture funders, and other key enablers aiding aspiring entrepreneurs and innovators, we are on the road to becoming among the world’s top startup ecosystems in the years ahead,” said Lopez.