In an exciting development for its startup ecosystem, Davao City successfully introduced its very own Startup Investors Community in partnership with the 2024 Davao Startup Week. This initiative, spearheaded by IDEAS Davao alongside Upgrade Innolab, Villgro Philippines, and the City Government of Davao, was unveiled during the Investors Mixer event titled “Connecting Startups with Local Investors,” held at Seda Hotel on September 29, 2024.
The event attracted a remarkable turnout of 50 investors and entrepreneurs from the city, fostering dialogue between investors and established entrepreneurs and encouraging them to consider investing in local tech startups supported by regional incubators, accelerators, and venture builder firms. Notable attendees included impact investor groups and Venture Capital firms such as Villgro Philippines, Bayanihan Ventures, E3 Hubs Malaysia, and Gobi Core.
This initiative directly responded to the 2023 Startup Ecosystem Mapping recommendation, which advocated for the establishment of a local investors community to enhance funding accessibility for early-stage startups. The introduction of angel financing is expected to significantly advance the city’s startup ecosystem, creating new opportunities for entrepreneurs throughout 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 support from the Davao City Investment and Promotion Center, is optimistic about the community’s future in providing more inclusive and accessible capital for innovators and entrepreneurs as they strive to build, launch, and scale their ventures.
