Kickstart Ventures is urging good governance within the Philippine startup ecosystem, citing its importance for sustained growth and investor confidence.
The country’s largest corporate venture capital (CVC) firm said that despite geopolitical uncertainties and funding gaps, the Philippines, with its young, digitally savvy population and high smartphone ownership, is poised to become a hub for tech innovation.
“Good governance is a key indicator of stability, especially in a climate where investors are more cautious,” said Jecky Pelaez, partner for legal and compliance at Kickstart Ventures.
“Startups that embrace good governance are better positioned to build trust, attract funding, and scale sustainably,” said Pelaez.
The call comes amid growing concerns over geopolitical instability affecting capital markets and exacerbating funding delays. Recent cases of mismanagement and financial misconduct among Southeast Asian startups have also made investors more cautious across the region.
“Good governance isn’t just about compliance; it’s about being proactive participants, building trust, staying transparent, and growing the right way. It helps startups establish a strong foundation so they can thrive even in a challenging market,” said Pelaez.
Kickstart Ventures employs thorough due diligence before investing, identifying startups dedicated to sustainable growth. This evaluation is guided by comprehensive checklists and best practices, covering everything from corporate registrations to revenue forecasts.
Post-investment, Kickstart provides strategic oversight, often taking board or observer seats. This support includes strict governance and building rapport with founders and management teams. Venture capitalists aid in document review, adherence to decision-making protocols and regular performance assessments to stay connected to a startup’s progress.
Ensuring compliance with licensing, ownership, and capital requirements, particularly for startups in regulated industries, is also crucial.
Beyond formal processes, Kickstart underscored the role of soft skills and strong human relations in integrating good governance. Fostering trust between VCs and their partners, alongside protocols and checklists, ensures operational efficiency and continued profitability.
From a local perspective, the Philippines was one of Southeast Asia’s fastest-growing economies, with a 5.6-percent GDP growth rate in 2024, driven by increasing retail spending and a growing middle class. These indicators signal growth opportunities that, with sound governance, can boost local and regional investor confidence.
Kickstart renewed its call for stronger good governance practices, urging both startups and VCs to make it a shared responsibility and strategic imperative to maintain trust and secure long-term growth.
Founders should establish systems centered on transparency and accountability, it said. Simultaneously, VCs should enhance their due diligence efforts to ensure safeguards are in place and act as active partners, offering capital, strategic guidance and oversight.
Pelaez said it is “not just about reviewing documents or ticking off a checklist for minimum compliance. We speak with founders, teams, investors and clients to get a full, unfiltered view of how the business operates and whether it’s built for sustainable growth.”
