Filipino startups are confident and optimistic, with plans
ranging from conducting initial public offering (IPO) to tapping new markets
within and outside the Philippines. To achieve their goals, they want to make
their businesses sustainable through improved tax incentives, greater ease in
doing business, and better access to capital.
These sum up the findings of the 2017 Philippine Startup Survey,
which will be unveiled during Slingshot ASEAN:Startup and Innovation Summit on
20 October 2017 at the Philippine International Convention Center (PICC) in
Manila. The survey was conducted by Isla Lipana & Co./PwC Philippines
(PwC), the Knowledge Partner for the summit, in partnership with QBO Philippines,
the country’s first public-private initiative for startups formed in 2016.
Mary Jade Roxas-Divinagracia
Deals and Corporate Finance Managing Partner of Isla Lipana & Co./PwC Philippines
PwC Philippines’ Deals and Corporate Finance Managing Partner
Jade Roxas-Divinagracia, explains: “Respondents were asked about their
experiences, insights, motivations, plans, and needs. The report also gives a
snapshot of the beginnings and the current status of the Philippine startup
ecosystem.”
Rene "Butch" Meily
President of QBO Philippines and IdeaSpace Foundation Inc.
“Through insights gleaned from this report, we hope that the
government and private sector can continue to collaborate to support
entrepreneurs in turning their ideas into reality,” says Rene “Butch” Meily,
President of QBO Philippines and of IdeaSpace Foundation, Inc.
Diane Eustaquio
Executive Director of IdeaSpace Foundation Inc.
IdeaSpace Foundation, Inc. is one of the founders of QBO
Philippines. Its Executive Director, Diane Eustaquio, notes: “The journey
though is not going to get any easier as the landscape is VUCA (volatile, uncertain,
complex and ambiguous). Let us continue to work on paving the way for
Philippine-based technopreneurs and their innovations so that they can prove
their impact on creating greater business value and a brighter future.”
Alexander Cabrera
(PwC Philippines Chairman and Senior Partner)
Atty. Alexander Cabrera, PwC Philippines’ Chairman and
Senior Partner, has nothing but respect for the 106 CEOs and founders who
participated in the survey. “I hope that the stories will inspire other
startups, investors, corporates, and the government to work together, and
build great companies. There is a huge multiplier effect to empowering
aspiring entrepreneurs.”
Survey highlights:
- 35% of the respondents launched their startups in
2016, and 19% launched in 2017.
- 43% are in the pre-revenue phase, while 37% have
annual revenues below PH
P2m.
- When they were starting their businesses, the top
challenges they faced were capital requirements (88%), regulatory requirements
(54%), and general economic/business conditions (50%).
- 63% are planning to raise equity financing to finance
their growth.
- 47% are planning to raise less than US$1m in the next
three to five years, while 27% are planning to raise between US$1m and US$3m.
- 94% are planning to welcome an investor in the next
three years.
- Primary uses of funds in the next three to five years
are product development (39%) and marketing initiatives (29%).
- Strategies for growth in the next three to five years
are to improve existing products or services (84%), introduce new products or
services (79%), and enter new territories outside the Philippines (61%).
- 63% are planning to conduct an IPO in the next five to
seven years.
- 95% are planning to enter new territories in the next
five years.
- New markets to tap are other areas in the Philippines
(56%), Indonesia (59%), Thailand (57%), Malaysia (55%), and Vietnam (52%).
- To help startups build sustainable businesses, the top
focus areas for improvement are tax incentives for startups (59%), ease of
doing business (59%), and access to capital (55%).
QBO Philippines co-founder, the Department of Science and Technology,
expresses its desire for the startup community to thrive. DOST Secretary
Fortunato De La Peña says, “May everyone realize and appreciate the
entrepreneurial environment that has been set up especially for those whose
agenda includes not only having a robust source of livelihood but also
contributing to the country’s development on the overall.”
For his part, Secretary Ramon Lopez of the Department of
Trade and Industry, another QBO Philippines co-founder, shares the same
sentiment: “We are confident that with the demonstrated capacity of the
Filipino in terms of creativity, talent, and hard work to be innovative and
entrepreneurial, plus the continued partnership among stakeholders, we can
build an inclusive innovation and entrepreneurship ecosystem that can help in
the development of MSMEs.”
About QBO
QBO (‘ku-bo’) represents bayanihan or teamwork. They invite
entrepreneurs, talents, and mentors and investors alike to come together and
make ideas flourish, showcase Filipino innovation, and build great companies.
QBO (‘ku-bo’) is
an innovation hub, or a platform for the startup community to collaborate,
develop talent, and grow. It provide startups with support and resources
through events and capacity building programs as well as focused interventions
designed to improve access to markets, knowledge, capital, and talent.
QBO is the country’s first public-private initiative for startups,
created through a partnership between IdeaSpace, J.P. Morgan, DOST, and DTI.
Spurred on by the vision of Filipinos startups changing the world, QBO’s
mission is to create a globally competitive startup ecosystem in the
Philippines.
QBO VISION
Filipino startups
changing the world.
QBO MISSION
Developing a
globally competitive startup ecosystem in the Philippines by encouraging
collaboration between the public and private sectors, developing the startup
community and providing business incubation from ideation to exit.
To fulfill their mission to
develop a globally competitive startup ecosystem, they believe in three core
actions to achieve it:
TO ENCOURAGE QLLABORATION
TO DEVELOP THE
STARTUP QMMUNITY
TO ASSIST IN INQBATION
HOW THEY DO
IT? Through...
QLITAN. Networking events
They host regular networking events that also feature guest speakers
for their startup community to discover, collaborate, and bounce ideas off of
each other.
BASIQS. Introductory classes
They conduct classes that run through the fundamentals of initiating
a startup for those who are new to the scene and are exploring putting up their
own venture.
WORQSHOPS. Specialized workshops
They offer in-depth workshops on a range of topics like branding, marketing,
and fundraising to shed more light on specialized topics and provide actionable
learnings.
FEEDBAQ. Feedback and mentorships sessions
They provide an avenue for startups to receive insight on different
aspects of their business through small group sessions with peers and their network of mentors and industry leaders.
SHOWQASE. Investor pitch
They set up sessions where startups get the opportunity to pitch
their ideas to top angel investors, venture capitalists, and corporations
for a chance to get funded or secure partnerships.
QONSULTATION. Consultation services
They equip startups with expert advice and practical tips through
individual consultation services on government-related matters as well as
legal, financial, and design concerns with top firms.
QBO HQ. Co-working space
They provide members of their QMMUNITY access to their headquarters to
use as a co-working space or a venue to host meetings, workshops, and other
startup-related events.
INQBATION. Incubation Program
They offer select startups the opportunity to be considered for
INQBATION, a program created in partnership with J.P. Morgan that provides
customized mentorship and other resources based on a startup’s specific needs.
