MANILA, Philippines — Local venture capital firm Kaya Founders is keen on seeing the domestic policy environment turn predictable for entrepreneurs, especially if the national government hopes to attract foreign investors by the dozen.
That was what Paulo Campos, founding managing general partner over at Kaya Founders, told Philstar.com in an exclusive interview.
Campos suggested that there used to be a time when a bulk of investments in the country came from wealthy families. That’s not the case now, since funds from Singapore, Hong Kong, the Middle East, China and the United States are looking to invest in the local startup scene.
“They’ll only do so if they see that there’s some predictable policy environment,” he said.
Data provided by Kaya Founders showed that venture funding in the Philippines hit $1.03 billion in 2021, skyrocketing 178% year-on-year compared to 2020 when the global economy contracted due to the COVID-19 pandemic.
That said, it also comes down to the ease of doing business, as Campos said that the policy environment should ensure that startups thrive at the moment of registration.
This also meant crafting public policy that will foster early-stage entrepreneurship, such as technical training and software development.
Tech scene, startups
The venture capital firm is bullish on market conditions at home.
This came at a precarious time, as venture capitalists all over the world are seeing investment activities get bogged down by headwinds. Southeast Asia remains a bright spot for startups and venture capital firms alike.
Campos said they were targeting to invest in 50 to 70 startups in the Philippines, burning through $150,000-500,000 in funding for early-stage startups.
That target is set over the next five years, covering the entire term of the Marcos Jr. administration.
“The burgeoning tech scene in the Philippines is reminiscent of previous growth narratives seen in markets such as India in the 2000s and Indonesia over the past decade,” Campos added. —Ramon Royandoyan