DTI, Chamber in talks re venture capitalism

The Department of Trade and Industry (DTI-7) pursues discussion in Venture Capitalism with Cebu Chamber of Commerce and Industry (CCCI).

DTI-7 assistant regional director Nanette Arbon made this announcement yesterday noting a growing interest among businessmen in Cebu who are willing to fund potential startups — both in technology and brick and mortar businesses.

According to Arbon the agency would like to reach out and discuss this opportunity of helping the startup business to grow, capital requirement plays a major role in launching high potential start-up concepts in mainstream market.

CCCI vice president for business development Virgilio Espeleta confirmed that there is now an increasing number of CCCI members who expressed interest to pool their funds together and enter into VC concept.

However, Espeleta said while there is high interest, capitalists are clueless on how to engage in VC or angel investor kind of funding platform.

Earlier the CCCI, under the leadership of Melanie Ng already announced its interest to engage into venture capital concept.

The plan was to convene the concerned organizations such as the DTI, Department of Science and Technology, and the business sector to connect the startups and industries with particular needs, said Ng.

Part of Ng’s plan was for Cebu to reverse the mechanism of traditional VC platform. Instead of looking for capitalists to fund a good innovation or business idea, the start-up community will be linked with industry players in order to know their (industry players) actual requirement.

CCCI also planned to seek help from both DTI and the Department of Science and Technology (DOST) as well as the CIB.O to develop and guide the talented individuals who have good potential to create solutions and cutting-edge concepts for companies.

Ng explained that what is needed now is for startups to reach out first to companies and know what their needs, instead of developing a concept/idea which may not be of use to industry players, or may not be commercially viable.

Arbon acknowledged that despite the existence of funding institutions which aim to fund the micro-small and medium entrepreneurs from both public and private institutions, lack of capital still emerged as number one hurdle for a business concept to take off.