TECH4GOOD
It is heartening to see that the Philippine startup ecosystem is alive, judging by the success of the 6th edition of the Philippine Startup Week (PHSW) held the other week. It was an excellent example of how government, academia, and the private sector should work together to get things moving. The startup community rose to show the world how vibrant our country’s ecosystem is today.
Led by the Innovative Startup Act (ISA) Steering Committee, composed of officials from the lead agencies—DoST, DTI, and DICT—and ably supported by the local private sector players, the PHSW has evolved into a nationwide celebration with simultaneous events all over the country. This author was invited to speak at several of those community events. The schools did their part as well. Miriam College’s Henry Sy, Sr. Innovation Center was the venue of the PHSW closing ceremonies.
This year’s theme was “ISA Para sa Bayan: Igniting Filipino Innovation.” Tens of thousands of attendees, including those from the side community events primarily held in schools, attended the event. The community events were held to strengthen innovation hubs in every region of the Philippines, providing startups with better resources and networking opportunities. Across all the weeklong events, almost 200 speakers and several hundred startup founders attended.
The recent PHSW’s success can be attributed to several factors. It provided a much-needed platform for local startups to gain visibility, attracting international attention and interest from potential partners and investors. It also fostered a strong sense of community among the various players in the Philippine startup ecosystem. Bringing together the founders, accelerators, funders, and experts in different venues facilitated knowledge sharing, collaboration, and the exchange of ideas. This vibrant community spirit is vital for driving innovation in the country.
The PHSW also showed that government agencies can collaborate with each other and effectively work with the private sector to make things happen,from which other public-private partnerships can learn. For example, support for the different regional startup ecosystems has been growing because of capacity-building initiatives by the ISA agencies and the presence of government-supported facilities like Tech Business Incubators (TBI). The Philippines now has 84 TBIs scattered all over the country.
The country’s startup ecosystem has undoubtedly become one of Asia’s most watched ecosystems. It is encouraging to see how far it has developed from its humble beginnings about 10 years ago when the country’s startup players launched the first Philippine development roadmap.
PHSW was started in 2019 by the ISA agencies as an offshoot of the signing of the Innovative Startup Act of 2019. It aims to foster a more resilient and globally competitive startup ecosystem in the Philippines. It has grown into the country’s largest startup event, showcasing startup founders, accelerators, funders, schools, and other government agencies. Other startup events that used to be run separately, like the annual Geeks on the Beach international startup conference, which was held in Cebu this year, are now converged under the umbrella of PHSW.
The development of the Philippine startup ecosystem is crucial for the country’s economic growth. Startups create jobs, attract investments, and foster innovation, a critical economic development driver. The innovations they create enhance the country’s global competitiveness and position the Philippines as a leading player in the region’s growing tech scene. Supporting startups also empower entrepreneurs, especially women and other underrepresented groups, to pursue their ideas and positively impact society.
According to the recently released Gobi Partners report titled “Philippine Horizons: Filipino Innovations in the ASEAN Landscape,” the Philippine technology ecosystem is having a banner 2024, with investment deal volumes nearly increasing four times. For the first time, Philippine tech funding reached $1 billion this year, not even counting the last month of this year. This growth is primarily driven by a shift towards larger growth-stage funding rounds, in contrast to the bridge rounds focused on survival seen in the previous year. This trend shows that the country’s startup ecosystem is maturing, marked by increased debt funding and a strong focus on scaling. Two-thirds of the 2024 funding went to Fintech, Logistic, and e-Commerce startups.
The report also highlights that AI is becoming a significant force in the country’s technology landscape. While the Philippines has traditionally relied on foreign AI tools, local startups are now developing AI solutions or integrating AI into existing platforms. We now see AI being integrated into sectors like AgriTech, FinTech, Logistics, HRTech, and HealthTech, indicating its wide-ranging applicability.
The Philippine startup ecosystem is moving toward becoming a significant player in the regional startup scene. The success of PHSW 2024 is a testament to the country’s commitment to fostering innovation and entrepreneurship. It provides a foundation for a more resilient and globally competitive startup ecosystem in the Philippines. We should continue to support, nurture, and patronize our startups.
(The author is an executive member of the National Innovation Council, lead convener of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics and AI Association of the Philippines, and vice president of UP System Information Technology Foundation. Email: [email protected])