Securing early-stage funding is a crucial step for startups looking to transform innovative ideas into sustainable, successful businesses. And it’s tricky – looking for a source of financial support in exchange for equity or debt is not an easy choice to make.
One of the options is to get in touch with angel investors – high-net-worth individuals who fund businesses using their own money in exchange for company shares. Fortunately, the rapidly evolving Philippine startup ecosystem offers a lot of opportunities for entrepreneurs to connect with the right angel investors.
Angel Investor Networks in the Philippines
Established in 2016, MAIN brings together experienced entrepreneurs, business executives, and industry experts who provide funding, mentorship, and industry connections to promising startups in various sectors (e.g., technology, e-commerce, healthcare, and fintech.
By connecting startups with angel investors, MAIN aims to create a vibrant entrepreneurial ecosystem in the Philippines and facilitate the growth of innovative businesses. Startups looking to secure funding must submit their business plans, pitch their ideas to the network, and undergo a thorough due diligence process.
The Angel Investment Network streamlines the entire startup-investor connection process. It is essentially an online platform that allows potential angel investors to scan the startup landscape and narrow down their options.
Entrepreneurs can create a profile on the platform – outlining their business idea, funding requirements, target market, and growth potential. Investors can then browse through these profiles and express interest in projects that align with their investment goals and industry expertise.
PHILVENCAP is a private organization dedicated to creating a robust ecosystem for venture capital and private equity financing in the country. One of their key initiatives is organizing events – including conferences, workshops, and roundtable discussions – that provide an avenue for stakeholders to exchange ideas and explore potential investment opportunities.
4) Venture Capital Firms in Manila
Aside from angel investors, startups may also opt for another route: venture capital firms. These are specialized financial institutions that provide funding and investment support to high-potential, early-stage startups. Their investments are typically high-risk because they target businesses with unproven business models and technologies.
One of the benefits of venture capital firms is that they have larger funding rounds – meaning startups can leverage more capital for scaling operations, entering new markets, and developing advanced technologies.
A downside is that a venture capital firm may have a potentially higher degree of control and governance requirements compared to angel investors. Keep in mind that this route is not always ideal for early-stage companies that are still in their ideation or prototype phase.
With all that said, these are the top venture capital investors in the Philippines:
- Foxmont Capital Partners: The team at Foxmonth Capital Partners supports startups from various industries, including technology, digital media, e-commerce, financial services, healthcare, and education, among others.
- ICCP SBI Venture Partners: This venture capital firm has a solid presence the United States and many countries in Asia.
- JG Digital Equity Ventures: JG Summit’s digital ventures arm focuses on digital and technology-enabled startups in Southeast Asia. They aid businesses from ideation to commercialization.
- Ayala Corporation: Known for its unwavering pursuit of progress and innovation, the Ayala Corporation continues to develop businesses that have the potential to disrupt and transform their respective industries.
- ADB Ventures: The venture capital arm of the Asian Development Bank (ADB) targets investments in innovative startups that aspire to create significant social, environmental, and economic impact in the Asia-Pacific region. Their North Star is the United Nations Sustainable Development Goals (SDGs).
Why Raise Funds in the Philippines
The Philippines has been witnessing unprecedented growth in the local startup scene. With the emergence of new homegrown companies, larger venture rounds, and increased consumer demand across various sectors, the country provides a favorable environment for startups to thrive. There have also been more frequent networking events – one example being the mixer of Embiggen, TechShake, and StartUp Village – for angel investors and startups alike.
The country has also recently implemented regulatory reforms and initiatives aimed at fostering entrepreneurship and innovation. With supportive government policies (e.g., Ease of Doing Business Act, Philippine Innovation Act, Foreign Investment Act, CREATE Act, Innovative Startup Act), the country hopes to be the wind beneath the wings of angel investors.
In terms of location, the Philippines is strategically located in Southeast Asia, offering startups the opportunity to access the broader ASEAN market. This regional demographic can be beneficial for startups looking to expand their client base and establish a presence in neighboring countries.
Lastly, the country is home to a large, skilled, and English-speaking workforce, making it relatively easier for business owners to recruit and retain talent. Institutions have also been fixating their efforts on developing workers’ entrepreneurial and technology-oriented skills, further contributing to the impressive talent pool.
Embiggen Capital: Where Great Ideas and Great Investors Meet
There is no denying that the Philippines has been witnessing a surge in its startup ecosystem. There has been growing interest from local and international investors – including angel investors and venture capital firms. The regulatory climate has also become increasingly favorable for both investors and startup founders.
We can expect that the funding opportunities in the country can only go up from here. So invest in the next big thing with Embiggen Capital – the Embiggen Group’s venture capital-as-a-service arm. Our VC experts will help you invest in high-growth potential startups or set up your own in-house VC fund.
Increase your bottom line, gain access to relevant insights, and connect with leaders in the venture capital space to help you make sound decisions. We’ll make sure that you invest your resources in the right opportunities.
Learn more about Embiggen Capital here.