The Philippines held a lot of promise as an emerging tech investment city in Asia last year.
Alongside Morocco and Vietnam, it was among the top three emerging tech hubs in 2015. Deal Street Asia forecasted that 50 new tech Philippine startups would be launched in the next few years, each with an annual revenue of P10 million. The Department of Science and Technology-Information Communications and Technology Office (DOST-ICTO) launched the Philippine Roadmap for Digital Startups to accelerate the development.
Fast-forward to a year later and the Philippine startups themselves are banding together to fulfill that promise. As reported by Techseen, they recently established StartupPH, an umbrella organization designed to promote collaboration and the pooling of resources. It also envisioned that a united startup community would be able to overcome perennial problems like access to funding, and rigid government regulations on foreign investment and ownership in certain sectors.
These young business mavericks show no sign of stopping. In its list of leading Philippine startups which included Lazada, Xurpas, Yondu, as well as itself, Rappler notes that the surge in their revenues the past few years, ranging from 41 to 71 percent.
Investing in Philippine startups
Minette Navarrette, president of Philippine venture capitalist Kickstart, notes a trend in the kind of Philippine startups which are successful in acquiring investor backing. Prominent on the list are companies that deal with financial technologies, especially payment facilities. Health tech, such as software solutions that help organize hospital processes and doctor-patient interaction, are also high on investor interest. Finally, real estate sites that offer services, other than just listings, also have a high rate of success with investors.
Significantly, while venture capitalists remained static last year, more foreign investors have been coming to the Philippines.
Harvard Business Review analyzes the factors why the Southeast Asian nation is attractive to potential investors recently. Many of them came from North America. Xurpas CEO Nix Nolledo revealed that the Philippines is an ideal testing hub for their products. Its location in Southeast Asia opens up doors of investment, production, and distribution into the nearby nations. The Filipino workforce’s familiarity with Western culture will draw in more investors from the U.S., Europe, and Australia.
Aside from that, there is the huge talent pool of educated, English-fluent professionals. The salaries of this workforce, largely composed of young adults, cost far less than their US counterparts. This young Filipino workforce is also very skilled when it comes to all things tech, from software to social media. They regularly upgrade their skills and are quick to adapt to the changing business environment.
The willingness of this young blood to work in startups where they can make a huge difference is another factor. This viewpoint is a radical departure from the values of the earlier generation, who sought employment in established, multi-national conglomerates.
Investors and startup founders are gathering all the information they need. They are scouting areas, explore business opportunities, and hire for talent. Many of these international startups are also looking to establish satellite offices in markets ripe for exploration and business, such as the Philippines.
Tech companies beyond the United States have noticed what the Philippines offers. As a result, startup founders from Germany, Japan, and Singapore are coming to the country to set up shop. The numbers of these new investors have been steadily increasing. The estimated new 50 Philippine start-ups are just the beginning as the Philippines consolidate its position as the startup tech hub to beat in 2016.
Interest rates surge; Iran nuclear deal intensifies global tension
European Parliament votes in favor of new blockchain resolution
PayPal expands in Europe with $2.2B iZettle deal
India takes strides to boost oil production amid rising prices
Mohawk Group eyes LEED and WELL Building Standard certificates with new showroom
Investing in stamps: A global hobby and investment
Put your money on this Daily Fantasy Sports company ahead of Soccer World Cup 2018 in Russia
Daily Fantasy Sports leader positions to take FIFA World Cup 2018 by storm
Exponential, Inc. founder, Dom Einhorn, thinks charitable fundraising is ripe for disruption
Why courtesy on social media pays off
Promoting women’s football in Malta by UEFA projects
Euro NCAP marks its 20th anniversary with two crash tests
European Parliament’s International Trade Committee backs CETA
The American Heart Association has released four new PSAs
PwC presents 20th global CEO survey results in Switzerland
Crypto4 days ago
Cannabis-crypto combo: Melding two disruptive industries
Featured4 days ago
How investors can use ESG metrics as great risk management tools
Featured4 days ago
Should you pay taxes using your credit card?
Featured5 days ago
5 things you need to know about the world’s billionaires club
Base Metals4 days ago
US’ exit from nuclear deal to curtail Iran’s steel expansion goal
Agriculture4 days ago
Orange juice continues rally; Palm oil moves up in weekly charts
Crypto4 days ago
Bitcoin security: Your new investment concern
Featured5 days ago
4 excellent robo-advisors to manage your retirement funds