MANILA – Startups in the Philippines are poised to get more support as three local government agencies set aside P417 million in seed funding this year.
The Department of Trade and Industry (DTI) will provide P250 million, P142 million from the Department of Science and Technology (DOST), while P24 million will be from the Department of Information and Communications Technology (DICT).
Trade Secretary Ramon Lopez said tech startups that are seen flourishing despite the pandemic.
"The solutions that really emerged are those providing services to the SMEs, to help them become more online. At the same time the logistics fulfillment, delivery fulfillment rose along the way together with the increase in e-commerce," he said.
Based on the DTI's estimates, 5 to 10 startups can benefit from their fund with a seed funding of between P5 million to P25 million. But Lopez said, more can be supported if private groups participate in the funding of good startup ideas.
Venture capital fund, Foxmont Capital Partners said the Philippines total investments in startups surged 384 percent to an estimated $183.8 million in the first half of 2020.
Fintech, information technology, and transport and logistics garnered the most investment capital.
The Philippine startup ecosystem currently ranks at 53rd in the world—17 positions up from its ranking three years ago. It has more than 400 startups, 50 angel investors, 40 venture capitalists, and 35 incubators and accelerators.
But based on a report by CB Insights, the Philippines lagged behind its Southeast Asian peers in terms of startup deal volume as of August 2019.