In an effort to further bolster its startup ecosystem, Davao City is set to introduce its very own Startup Investors Community in collaboration with the upcoming 2024 Davao Startup Week.
This initiative, spearheaded by IDEAS Davao in conjunction with Upgrade Innolab, Villgro Philippines, and the City Government of Davao, is scheduled to be unveiled during the Investors Mixer event, titled “Connecting Startups with Local Investors,” which will take place at Seda Hotel on September 29, 2024, starting at 10:30 AM.
The event is expected to draw the participation of 50 investors and entrepreneurs from the city. Its primary aim is to facilitate dialogue between investors and established entrepreneurs, urging them to consider investing in locally-grown tech startup companies supported by the region’s incubators, accelerators, and venture-b builders firms.
Notable participants slated to attend include impact investor groups and Venture Capital firms such as Villgro Philippines, Bayanihan Ventures, E3 Hubs Malaysia, and Gobi Core.
This endeavor comes in response to the 2023 Startup Ecosystem Mapping recommendation, which urged Davao to establish its own investor community to enhance accessibility to funding for early-stage startups. The presence of angel financing is anticipated to significantly contribute to the further advancement of the city’s startup ecosystem, creating more opportunities for entrepreneurs in the region.
Mr. Richard Day, President of Upgrade Innolab, emphasized the challenges faced by the Davao startup ecosystem in accessing essential risk capital. He highlighted the need for individuals who can help mitigate the risk for promising startups catering to growing markets.
While startups in Davao and the region can secure funding for research and development through government grants such as the DOST Startup Grant Fund Program, NEDA Innovation Fund, and DICT Startup Grants, the competitive nature of these programs poses a challenge.
To date, Davao Region ranks second in the number of startups funded by DOST, with only four startup companies benefiting from the grants. Therefore, the establishment of a robust capital access system in Davao City and the region at large is imperative.
Mr. Day stressed the importance of gathering institutions and individuals capable of financing budding startup companies and securing substantial capital for the expansion and scaling up of operations. Potential interventions include organizing targeted demo days and investment readiness training for incubators, as well as setting up angel clubs and networks to engage local tycoons and high net-worth individuals. Educating potential investors about startups and startup investments is identified as a challenging yet essential step in this process.
IDEAS Davao, with the support of the Davao City Investment and Promotion Center, remains optimistic about the prospect of providing a more inclusive and accessible capital for innovators and entrepreneurs in their pursuit to build, launch, and scale their ventures.
Candice is an educator, community builder, and Fulbright scholar based in Davao City, Philippines. She lives a double life as a university instructor during the day and a startup ecosystem lead at night. Focusing on building a thriving ecosystem in the Davao Region, Philippines, her interests lie in the intersections of language teaching, policy-making, tech, and business.