Many startup companies are encouraged to raise funds from the local or foreign stock markets as a better and easier option than working with large venture capital firms.
Ideaspace and QBO Innovation Hub president Butch Meilly said at the opening of the National Startup Week that many small firms thought of resorting to initial public offerings to get the funding they needed to grow their businesses.
“They don't have to work for a big company to do well. They can start their own company and really create wealth for themselves, for their employees and for the country through stock options. And as I said, go public,” he said.
He said many startups were getting attention for the innovations they created and continue to create, which is good for the entire start-up community.
The Department of Trade and Industry expressed optimism that more start-ups would get the funding they needed to support daily operations and contribute to strengthening the booming Philippine startup community.
“If there would be more startups that will be able to raise funds, we will be able to create more strong start ups with improved quality with a higher probability of surviving competition especially now since there are three agencies working closely together in terms of providing all the necessary support at all stages in the lifecycle of a start-up,” said Trade Undersecretary Rafaelita Aldaba.
She said the National Development Company planned to set up a startup venture fund.
Aldaba said startups were “brightening the local economy” in the face of pandemic as evidenced by many small, emerging companies that are digital in nature, contributing to economic recovery.
“And if we look at the forecasts for economic recovery, many are saying that by the end of this quarter or by the end of this year, we will already be hitting our 2019 level. There is a lot of momentum there, a lot of excitement, especially as the private sector and industries are all preparing for digital transformation,” she said.
A joint report by Google, Temasek and Bain & Company shows that the Philippine digital economy could grow to $28 billion by 2025.