Manila
exhibits ‘accelerating ecosystem,’ 4 other cities reveal
potential
The
2019 Startup Ecosystem Mapping is participated by startup
representatives, accelerators, public and private incubators,
community builders, venture capitalists, angel investors, government,
and private companies—all working together to uplift the Philippine
startup ecosystem.
The
Philippine startup industry is reaching new heights but aspiring tech
entrepreneurs still face certain challenges—from business
conditions to regulatory requirements and gender disparity.
To
assess the country’s current startup ecosystem, QBO Innovation Hub,
in partnership with the Department of Trade and Industry (DTI),
conducted a Startup Ecosystem Mapping exercise which identifies areas
that need to be improved and available resources in order to help
make the Philippines a globally competitive place for startups. The
initiative is also part of QBO’s Startup
Pinay
program that encourages and supports increased female participation
in the startup industry.
“DTI
acknowledges the importance of a thriving, science and
technology-based startup ecosystem to achieve the country's goal of
growing globally competitive and innovative industries. Our focus is
on S&T-based solutions in sectors that need innovative solutions
such as communications, agriculture, health, AI, IoT, among others.
and covering not only software but also hardware and business model.
Having an innovative tech and services industry contributes to
inclusive growth and employment generation of the Philippines as a
whole," said DTI Undersecretary of the Competitiveness and
Innovation Group Rafaelita M. Aldaba. "We partnered with QBO to
support startup development by building the startup ecosystem; bridge
the gap between innovative technological seeds and commercialization;
and help create global Philippine startups."
In
2016, only two cities—Manila and Cebu—were mapped. But with
Philippines startup exhibiting growth in other areas, the 2019
Startup Ecosystem Mapping extended to three other cities: Legazpi,
Bohol, and Naga. Similar mapping efforts are to be conducted in
Zamboanga City, Puerto Princesa, Pangasinan, and Dumaguete by the
Department of Information and Communications Technology with
Ideaspace Foundation, making it an unprecedented countrywide effort.
The
mapping sessions were participated by startup representatives,
accelerators, public and private incubators, community builders,
venture capitalists, angel investors, government, and private
companies. The cities were categorized based on Techstars’
7
Stages of Startup Communities:
Nascent, Foundational, Accelerating, Established, High Functioning,
Progressive, and Aspirational.
“Aside
from assessing the health of the startup communities in these cities,
we also put together a set of recommendations after each mapping
session to help them move to the next stage,” said QBO President
Rene “Butch” Meily. “We’ve seen remarkable changes from 2016
to 2019 and ultimately, our goal is to promote and encourage
collaboration to address the pain points experienced by startup
founders and identify initiatives that will enable them to grow.”
Manila:
A Place Where Startups Accelerate and Thrive
Home
to most successful startup stories in the country, Manila’s
landscape has improved remarkably. The 2018 Startup Ecosystem Canvas
revealed Manila as having an “Accelerating Ecosystem” because of
the increasing support it is getting from the government, investment
groups, and other stakeholders. Recent exits from startups such as
ChatbotPH, Teko, and Coins.ph have also contributed to the stronger
awareness about startups in the city. Recent findings of the 2019
StartupBlink Report revealed the Philippines ranking 54th among 202
countries, with the strongest startup ecosystem, Manila, as its
frontrunner breaching the global top 100 for the first time.
“In
order for Manila to move to the next stage, we recommend
verticalization of support programs that specialize in specific
industries such as FinTech, HealthTech, and PropTech and creation of
a density center or cluster for housing, services, and spaces to
increase collaboration among startups and ramp up their
productivity,” said Meily. “Corporate engagement must also be
strengthened and entrepreneurs must be engaged in the development of
a favorable regulatory environment that addresses concerns relevant
to the tech industry.”
Cebu,
Bohol, Naga, Legazpi: The Next Wave Cities for Startups?
Aside
from Manila, four other cities exhibited growth potential in their
respective startup economies: Cebu, Legazpi, Bohol, and Naga.
Cebu
is categorized under the Foundational Ecosystem due to an increasing
density of startups, considerable number of co-working spaces, and
strong regional networks with connections with Manila, the rest of
Southeast Asia, and Silicon Valley. The city also benefits from the
strong support from the government, with local officials taking the
lead in developing the local startup ecosystem. To further elevate
Cebu’s ranking, recommended key actions include the establishment
of local incubators with accessible mentor networks, stronger support
for local businesses, as well as more dynamic engagement with
universities.
Bohol’s
potential to be a travel tech hub is also evident with efforts to
develop the local talent and inspire Boholanos to be more involved in
tech. The mapping effort revealed that these programs must be made
sustainable for Bohol to reach its full potential. “Bohol has a lot
of potential and this can be fully achieved by inspiring and
mentoring young talents to build their own startups,” added Meily.
Currently, Bohol is categorized as a Nascent Ecosystem characterized
by a group of passionate people pushing to build a stronger startup
community.
Visible
support from local businesses and involvement of local universities
is pushing Naga to be categorized as a Foundational Ecosystem.
Additionally, the efforts of Naga’s local government units
contribute to its fast-growing startups. Similarly, Legazpi’s
startups are benefitting from programs with fund allocation and
support from different government agencies. To continue this
momentum, recommended actions include putting up an online
information portal related to the local startup ecosystem and
organizing more collaborative and networking events.
“The
Philippines has a lot of potential hubs for startups—all it takes
is for all stakeholders to come together and realize that great ideas
can come from everywhere. To achieve our goal of advancing the
Philippines’ startup ecosystem, there must be a concerted effort
not just from Manila but from the countryside as well to cultivate
talent and support burgeoning businesses locally” said Meily.
