The Department of Trade and Industry (DTI) and Plug and Play have struck a partnership deal to develop a nationwide accelerator program for local companies, which will run for two years. The deal is anticipated to help 40 promising businesses each year through mentoring, restricted equity capital, and other forms of assistance.
Through industry connections and gap and opportunity identification across the sectors, the initiative also aims to develop creative solutions through startup investment eventually.
Tapping into a rising startup hub
At least 40 businesses will be selected by the program each year, and they will be given access to DTI-sponsored co-working spaces, Plug and Play's deal flow workshops, and mentorship.
“The Philippines’ young, educated, and tech-savvy population positions our country as a rising startup hub in Asia, propelled by government and private support. With Plug and Play’s participation and partnership, we’ll be able to accelerate the process,” said DTI Secretary Alfredo Pascual.
According to Pascual, they were especially interested in firms working in the fields of artificial intelligence (AI), cybersecurity, software development, animation, and food and agricultural technologies.
The DTI estimates that there are over 1,000 companies in Manila alone, with a combined valuation of over USD 3.5 billion.
Partnership with Plug and Play
Around 80 industry-focused accelerator programs are implemented globally by Plug and Play, with a minimum six-month duration for each batch of 20 entrepreneurs.
The selected Philippine firms who will participate in the program may be able to access $10 billion in capital from Plug and Play's global network, according to co-founder Jose Avelino Flores.
“I have access to at least USD10 billion worth of funding from our network globally. Now, when I go to these VCs (venture capitalists), I can tell them we have the best service startups in the world because there’s nobody else doing it — only the Philippines will be doing it,” he said.
PayPal and Dropbox are just a couple of the businesses it has successfully started in the past.
