PH market now more open to startups

To provide an investment-friendly environment for startups, he said the Philippines needs to implement “a lot of structural improvements” adding this will also attract foreign startups to expand in the country. (Pexels photo)

MANILA – The coronavirus disease 2019 (Covid-19) pandemic has made big companies notice startups as they have the digital knowledge to enable the ‘big guys’ to operate amid the global health crisis.

In an online event of the German-Philippine Chamber of Commerce and Industry (GPCCI) Tuesday, Kickstart Ventures, Inc. co-founder, senior vice president and treasurer Dan Siazon said the Philippine market becomes more open to talk and engage now with startups, a key behavioral change in the local market.

“Generally, if you ask a bank to talk to a startup, there’s no way. They will always go for the IBM or the blue-chip company for the solution. But that is changing, we see (it) even in our portfolio. There are opportunities opening up, with the ‘big guys’ willing to talk to ‘small guys,” Siazon said.

To provide an investment-friendly environment for startups, he said the Philippines needs to implement “a lot of structural improvements” adding this will also attract foreign startups to expand in the country.

Gravitas Prime director for venture strategy Joseph de Leon said the pandemic has accelerated the local startup ecosystem and also tested its resilience.

De Leon added there has also been a rapid digital adoption in Southeast Asia as people that are expected to do online transactions by 2025 are already onboard.

“I think this time is a clear reminder that change is coming; it is already here. And I think a lot of startups and a lot of us individually are basically reevaluating, revaluing, and reinventing ourselves and opportunities,” he said.

A survey of the World Bank, the National Economic and Development Authority, and the Department of Finance reported that many companies have turned to digital solutions to continue their businesses amid the pandemic.