Support, perks sought for technology startups

THE PHILIPPINE technology startup industry has sought for a more conducive policy and incentive environment that will enable these companies to gain access to the much-needed funding and regulatory support to boost their respective businesses.

Earl Martin Valencia, founder and president of IdeaSpace Foundation, said their group had been holding discussions with government agencies such as the Department of Trade and Industry on how to provide a more enabling environment for tech startups particularly those that are still in their early stages.

Among the ideas floated are the granting of tax breaks, investment insurance services and possible inclusion in the Investment Priorities Plan and the Philippine Export Development Plan.

Also critical, according to Valencia, is for the private sector, the government and academe to work together to create a new mindset that will provide support to startups all the way from the innovation, commercialization and growth stage.

Minette Navarette, president of Kickstart Ventures Inc., stressed the need to create an environment where innovation was possible.

“Innovation is only possible when it’s easy to start up and easy to fail without social repercussions and without financial repercussions. We want an environment where there is access to capital of different sorts. There are angel investors and angel networks. We need an environment where diversity is present because the diversity of perspectives, ideas and talents is what’s necessary in order to create thriving community. And you need an environment where mobility is possible,” Navarette said.

“(We need to) make a better investment climate, make it possible to bring different kinds of investors—that would be a start,” she added.

Resource speakers Richard Dasher, director of the US-Asia Technology Management Center at the Stanford University; Justin Hall, principal for Golden Gate Ventures; and Nicholas Shea, founder of Start Up Chile, had all stressed the key role of the government in creating an environment that would provide a spring board for these tech startups.

“Creating and improving an ecosystem (for tech startups) involve all three sectors: the government, the business community and the university community… The government must be able to create a good policy environment,” Dasher said.

For his part, Trade Secretary Gregory L. Domingo had committed to set up a new and more conducive policy environment to boost the Philippine technology startup sector, as he admitted that the government was currently lagging in its understanding and support for this emerging local industry.

Domingo stressed to participants of the Slingshot MNL 2015 session the need to boost the local technology startup industry, as it could offer so many opportunities.