How We’re Building Circular Economy Startups into Scalable Climate Solutions
At Upgrade Innolab, we believe innovation isn’t confined to high-rise boardrooms or venture capital panels, it’s happening in wet markets, junk shops, and barangay streets across Mindanao. In Davao City, we’re proving that what was once thrown away like banana peels, plastics, and rejected agri-waste can become the foundation for the country’s next generation of climate startups.
We are not just incubating startups. We’re helping build a circular economy movement one venture, one founder, and one community at a time.
What We’re Seeing on the Ground
Every morning, public markets in Davao clear mountains of food scraps and packaging waste. Historically, this was considered the unavoidable cost of a growing economy. But through the lens of our founders, this isn’t waste, it’s untapped value.
We’ve worked closely with first-time entrepreneurs who come from rural towns and underserved sectors. Many without formal business training, but with deep community trust and relentless drive. Over the past year, we’ve supported circular economy ventures that:
- Convert bio-waste into soil conditioner
- Launch barangay-level composting services
- Build circular supply chains using local informal waste networks
Our focus is clear: help them go from prototype to traction — with speed, impact, and context-driven support.
Our Incubation Blueprint
We designed our incubation model for builders, not just presenters. Here’s what sets our process apart:
1. Community-First Validation
We start by pushing founders into real-world engagement. No air-conditioned workshops. They map waste flows, interview junk shop owners, and embed in barangay operations to test real-world assumptions — fast.
2. Build Fast, Validate Hard
One team wanted to use AI to sort waste. We asked them to first shadow manual pickers. The result? They launched a hybrid model using local workers — restoring trust while creating green jobs. Another team working with banana peel waste pivoted from product selling to service-based collection, tripling revenue in three months.
3. Partnerships with Purpose
We don’t just introduce startups to LGUs and cooperatives. We help them co-build with them. These partnerships have led to stronger systems, faster adoption, and mutual ownership of climate outcomes.
4. Impact Built into the Dashboard
Every team tracks KPIs like kilograms of waste diverted, carbon offset generated, and jobs created. These aren’t vanity metrics — they’re core to growth, pricing, and securing mission-aligned capital.
What Makes This Work
We don’t treat climate impact as charity. We treat it as business logic. Circular solutions work because they’re cost-effective, scalable, and resilient.
As Richard Day, our President puts it:
“When you’re building in the margins, climate solutions need to earn. Impact is our edge — but profit is our proof.”
One composting team, co-developing with barangay officials, rolled out a subscription model for local businesses. No government funding. No giveaways. Just smart design. Within six months: 42% growth in participation and positive cash flow.
What’s Coming Next
In 2025, we’re scaling. We aim to support 20 circular startups annually across Mindanao with a strengthened model:
- Regional co-incubation with universities and local MRFs
- Deep partnerships with climate-focused donors
- An open-source “Venture Studio for Climate” framework
Our targets:
- Divert 1 million+ kilograms of waste
- Create over 5,000 new green jobs
- Establish a replicable model for regional climate innovation
More Than Numbers
Behind each metric is a human story:
- A former jeepney driver who now earns stable income in e-waste sorting.
- A single mother selling bioplastics in her sari-sari store.
- A cooperative no longer waiting for help — now co-owning the solution.
This is the kind of climate entrepreneurship we believe in: local, inclusive, execution-driven. We’re not here to make headlines — we’re here to help founders build systems that work in their own communities.
In Davao, the circular shift has already begun.
And we’re just getting started.
