The Department of Information and Communications Technology (DICT) has launched the Startup Grant Fund (SGF) to support the development and growth of ICT-based startups in the Philippines.
This program provides early-stage startups with financial assistance, mentorship, and networking opportunities, empowering them to bring their innovative products and business ideas to life.
With grants ranging from PHP 500,000 to PHP 1,000,000, the SGF aims to foster a thriving ICT ecosystem that can drive economic growth and job creation.
Eligibility Criteria
To apply for the DICT Startup Grant Fund, startups must meet specific eligibility requirements.
Here’s a breakdown of the criteria:
Registration: The startup must be officially registered as a business in the Philippines and listed on the Startup Philippines Website.
The startup must have a valid Startup Number as part of the registration process.
Business Focus: Startups should focus on developing innovative products, processes, or business models.
The program is particularly geared toward startups working on technology-based solutions that contribute to sectors like IoT, digital platforms, or automation.
Financial Integrity: Applicants and their key team members should not have any unresolved accounts with government agencies.
This includes pending technical or financial reports from previous grants or funding programs.
Legal Compliance: The startup’s owners, incorporators, and officers should have no pending administrative or criminal cases related to fraud or financial misconduct.
Legal compliance is important to maintaining transparency and fairness in the grant process.
Conflict of Interest: The startup team should not have any familial relations (up to the fourth civil degree) with DICT officials involved in processing the Startup Grant Agreement (SGA) or fund disbursement.
By meeting these criteria, the DICT maintains a transparent and fair process for selecting eligible startups that can benefit from the grant fund.
Benefits
The DICT SGF offers a comprehensive set of benefits designed to help ICT-based startups grow and scale their operations.
Here are the key advantages of the program:
Financial Grants: Approved startups can receive financial support ranging from PHP 500,000 to PHP 1,000,000.
The grant amount depends on the startup’s Work and Financial Plan (WFP) and the scope of its proposed project.
Mentorship and Coaching: Startups will have access to a pool of accredited mentors.
These experts provide guidance on technology development, business strategies, financial management, and scaling efforts, giving startups the support they need to succeed.
Networking Opportunities: Grantees are connected to a broader network of startup enablers, investors, and government agencies.
This opens up opportunities for collaboration and additional funding, which can greatly enhance the startup’s growth potential.
By offering these benefits, the DICT SGF provides a solid foundation for startups to accelerate their product development and enter the market with confidence.
Application Process
The application process for the DICT Startup Grant Fund is straightforward, making it easy for eligible startups to apply for the grant.
Here’s a step-by-step guide:
- Prepare a Project Proposal
Startups must prepare a detailed project proposal that includes the following:
- Startup Information: The name of the startup and the title of the proposed project.
- Project Timeline: The expected duration of the project, which should align with the objectives outlined in the SGA.
- Team Details: A description of the startup’s founders and key team members, highlighting their expertise and experience.
- Product Value Proposition: A clear description of the product or service being developed, along with its unique value proposition in the market.
- Submit the Proposal
Once the proposal is complete, startups must submit it through the Startup Philippines Website or other prescribed channels provided by DICT.
The proposal must adhere to the specified format, and startups must also include their Financial Plan as part of the submission.
- Evaluation of the Proposal
The DICT will evaluate submitted proposals based on several key criteria:
- Workability/Technical Viability: The technical soundness of the proposed technology or solution.
This is evaluated based on established scientific and technological principles (35%).
- Commercial Viability: The competitiveness of the product or solution in the market, including its potential to scale and generate revenue (15%).
- Management Capability: The expertise and experience of the project team, particularly their ability to execute the project successfully (30%).
- Social and Environmental Impact: The potential of the project to contribute positively to society or the environment, particularly in alignment with Sustainable Development Goals (10%).
- Manageable Timeframe: The feasibility of completing the project within the proposed timeline, confirming that the product can be developed and launched within one year (10%).
- Mentorship and Monitoring
If the project is approved, startups will undergo mentorship sessions with industry experts.
The DICT will also monitor the startup’s progress throughout the project implementation period, providing guidance and checking that grant funds are used appropriately.
Grant Administration and Conditions
Startups that receive the DICT SGF must adhere to specific guidelines and conditions throughout the grant period:
Grant Coverage: The grant will cover expenses related to product development, such as equipment procurement, software development, and marketing.
The exact amount will depend on the startup’s approved Financial Plan, which must be submitted with the project proposal.
Exclusive Government Funding: The DICT SGF must be the only source of government funding for the startup during the grant period.
However, the startup may still use counterpart funding from other sources, such as its own incorporators or external investors, as long as it is reflected in the WFP.
Procurement Guidelines: Startups must consult DICT for approval before purchasing any equipment or materials using the grant funds.
This maintains that all expenditures align with the approved Financial Plan.
- Project Monitoring: The DICT will monitor the progress of grantees through regular reporting, and startups will be assigned mentors to help track their achievements and challenges.
- Requesting Extensions: If a startup needs more time to complete its project, it can request an extension for up to one year.
However, the DICT must approve this request based on the project’s progress and justifications for the delay.
Video: Startup Grant Fund Demo Day
Conclusion
The DICT Startup Grant Fund is a valuable program that provides early-stage ICT-based startups with the resources they need to grow and succeed.
With financial support, expert mentorship, and a strong network of partners, startups can fast-track their product development and gain a competitive edge in the market.
By focusing on innovation, business viability, and social impact, the DICT SGF aims to contribute to the growth of the Philippine startup ecosystem, promoting economic development and job creation in the ICT sector.
For aspiring technopreneurs, the DICT SGF offers the opportunity to turn ideas into reality and build a successful business that can thrive both locally and globally.