The government is aiming to grow the Philippine startup ecosystem to $10 billion in five years, the Department of Trade and Industry (DTI) said Monday, Nov. 20.
“We are expecting it to grow… [maybe] in the next five years, we want it to double, [maybe by] $10 billion… until the end of the administration,” said DTI Competitiveness and Innovation Undersecretary Rafaelita Aldaba in an interview with reporters during the opening program of the Philippine Startup Week at Makati Diamond Residences on Monday.
A report by Startup Genome valued the current Manila startup ecosystem alone at $3.5 billion. Manila's startup ecosystem is among the top 100 emerging global ecosystems based on the report.
In her speech, Aldaba presented the recent accomplishments of the country's startup ecosystem and the government's efforts to address challenges and push for higher growth.
She highlighted that the Philippines is emerging as an attractive startup destination in Asia due to its rapidly growing startup and innovation ecosystem.
“Startups have emerged as key drivers of economic recovery, inclusive and sustainable growth, and job creation. Startups are catalysts for disruptive innovation,” Aldaba said.
She said the Philippine startup ecosystem is composed of a rapidly growing and dynamic network of over 1000 startups, 60 incubators and accelerators, and over 50 agent investors and venture capitalists.
The country also has been ranked among the top 30 in Asia for talent, experience, and performance.
At present, Aldaba said that startups from the regions account for a small number, hoping that it will grow by 20 percent in two to three years.
These startups come from Cebu, Cagayan de Oro, Davao, and other urban areas in the country.
She stressed that the government is hoping to achieve all these targets “with all the different programs and policies, infrastructure being built, in order for us to create a more dynamic, and a vibrant, and robust startup ecosystem.”
Before the enactment of the crucial laws for promoting innovation and boosting the country's startup ecosystem, including the Philippine Innovation Act and the Innovative Startup Act, Aldaba said that the value of the startup ecosystem was only below $1 billion.
She also said that the pandemic bolstered local startups' resilience, resulting in a surge in the digital economy, boosting transactions and funding for expansion.
Meanwhile, she emphasized that the DTI, Department of Information and Communication Technology (ICT), and Department of Science and Technology (DOST) are working together to address startup founders' challenges, including capital requirements, market readiness, talent retention, and access to mentors and networks.
She added that the government has provided over P800 million in grants to over 900 startups and incubators, including social enterprises, across various sectors.
These grants have accelerated startup growth through activities like hackathons, capacity building, mentoring, and technological and business incubation.
“Given the challenges faced by Filipino startups, we are focusing our efforts to address these issues and accelerate the growth of the Philippine tech startup ecosystem,” she added.
These efforts include forming a larger, coordinated ecosystem, stronger corporate sector linkages, and promotion of technology entrepreneurship; increased early-stage funding; improved startup quality; and global connectivity through investment and knowledge exchange programs.
“Together we will all be investing in Filipino homegrown heroes as global game changers of tomorrow,” Aldaba said.