The Startup Venture Fund (SVF) is a government-backed co-investment program designed to support innovative Filipino startups.
It provides financial assistance, mentorship, and networking opportunities to help startups grow. The fund operates by partnering with accredited Co-Investment Partners (CIPs) who co-invest alongside the government.
Startups based in the Philippines that meet specific eligibility criteria, such as having a viable product and being in operation for at least one year, can apply for funding.
The SVF offers investment rather than grants, with no upfront cost to apply.
What Is the Startup Venture Fund (SVF)?
The Startup Venture Fund is a co-investment program that allows the Philippine government, along with accredited Co-Investment Partners (CIPs), to support innovative startups.
With an initial funding allocation of PHP 250 million, the SVF aims to provide financial assistance, mentorship, and networking opportunities to promising Filipino startups.
This fund addresses one of the most common hurdles startups face: access to capital. By providing financial support, the SVF helps startups scale their operations, refine their products or services, and become more competitive in the global market.
How Does the SVF Work?
The SVF operates on a co-investment model. This means that the government, through the NDC, cannot directly invest in a startup unless there is an accredited CIP to partner with. The SVF does not act as the lead investor, but it can help find a matching CIP for startups that meet the fund’s eligibility criteria.
The Co-Investment Process:
- Screening: Startups are evaluated based on eligibility criteria such as being registered with the Securities and Exchange Commission (SEC), having an innovative product or service, and operating for at least one year.
- Due Diligence: The Investment Team conducts thorough checks to verify that the startup has strong potential for growth and sustainability.
- Evaluation: Both the Investment Team and the CIP review the startup’s business model, financials, and market potential before making an investment decision.
- Negotiation and Fund Release: Once approved, the funds are released to the startup in conjunction with the CIP’s investment.
The SVF serves as a partner, providing not only capital but also strategic guidance and access to networks that startups would find challenging to navigate on their own.
Eligibility Criteria
Startups looking to apply for the SVF must meet several criteria to qualify for investment. These include:
- Innovation: The startup must have a minimum viable product, process, or service that is new and scalable.
- Philippine-based: The startup should be based and registered in the Philippines, contributing to the local economy.
- Operational: The business should have been running for at least one year with a positive cash flow.
- No Pending Accountability: The startup should not have any unresolved issues with government agencies or undeclared funding from other government entities.
These criteria help ensure that only the most promising and responsible startups gain access to the SVF’s resources.
The Role of Co-Investment Partners (CIPs)
CIPs are important to the SVF process. These partners, which include venture capital firms, private equity companies, and corporations, are responsible for co-investing in the startups alongside the SVF.
To become accredited, CIPs must meet specific requirements. They must be willing to provide mentorship, managerial oversight, and business network access to the startups they co-invest in. Additionally, CIPs must have no conflicts of interest with the Fund and be able to demonstrate their experience and capacity in managing startup investments.
The CIP accreditation process involves submitting relevant documents, undergoing initial evaluation, and completing due diligence. Once accredited, CIPs collaborate with the SVF to identify and support high-potential startups.
Building a Thriving Startup Ecosystem
The SVF is just one part of the larger effort to build a robust startup ecosystem in the Philippines. This ecosystem comprises various stakeholders, including:
- Universities: Providing research and innovation support.
- Service Providers: Offering essential services such as legal, marketing, and technical expertise.
- Big Companies: Collaborating with startups on pilot projects or providing corporate venturing opportunities.
- Funding Organizations: Venture capitalists and angel investors ready to provide the necessary funding.
- Support Organizations: Accelerators and incubators that nurture startups through mentorship and capacity-building programs.
- Research Organizations: Conducting studies and providing valuable insights to improve startup performance.
Together, these elements create a nurturing environment where startups can thrive.
How to Apply
For startups and CIPs interested in applying for the SVF, the process is straightforward. Startups need to submit a letter of intent along with the necessary documents to the official SVF email at svf@ndc.gov.ph. These documents include pitch decks, financial statements, and details about their target market, products, services, and competition.
Similarly, CIPs must go through an accreditation process, verifying they meet the qualifications to co-invest with the SVF. The Investment Team carefully screens both startups and CIPs to keep the integrity and effectiveness of the fund.
Why the Program Matters
The SVF is a key driver of growth for the Philippine startup ecosystem. It provides much-needed capital to startups that have the potential to drive innovation, create jobs, and contribute to the country’s economic development. More importantly, the SVF fosters collaboration between the government, private investors, and startups, creating a supportive ecosystem that helps businesses succeed.
Whether you’re a startup founder looking for funding or an investor seeking to collaborate with high-potential ventures, the SVF offers a unique opportunity to be part of the next big wave of innovation in the Philippines.
Recent Updates
Fostering Clean Energy Innovation in the Philippines
The New Energy Nexus (NEX) report sheds light on the financial and infrastructure challenges hindering the growth of clean energy and climate startups in the Philippines. These enterprises struggle to access government funding and resources due to bureaucratic inefficiencies and a lack of awareness. Collaboration among government agencies, think tanks, NGOs, and the private sector is crucial to drive the adoption of clean energy innovations, empowering local entrepreneurs to lead the way. NEX’s support for 85 out of 91 startups since 2019 underscores the tangible impact of enabling access to funding and resources for these ventures, paving the way for a more sustainable future. (Philstar)
Philippines Celebrates Creative Industries Month
The Department of Trade and Industry (DTI) kicked off the Philippine Creative Industries Month (PCIM) 2024 on September 3, marking a month-long celebration of Filipino creativity and innovation. The event showcased exhibitions, workshops, and knowledge-sharing sessions, highlighting the contributions of the creative industries to the country’s cultural legacy and economic vitality. Distinguished speakers from various creative domains shared their insights, while interactive booths provided attendees with information about support mechanisms available for the creative industries. The event also featured performances from talented artists, demonstrating the vibrancy of the Philippine creative scene. The PCIM celebration aims to promote and develop the creative industries as a key pillar of the nation’s cultural and economic landscape, with the launch of a new website serving as a resource hub for industry updates and opportunities. (SunStar)
Video: Government Funding Opportunities for Startups in PH: DTI-NDC
Conclusion
As the SVF continues to grow, it is expected to have a major impact on transforming the Philippine startup scene. With its focus on innovation, collaboration, and investment, the SVF is set to empower a new generation of entrepreneurs who will not only succeed locally but also compete on the global stage.
The future of Philippine startups is bright, and the Startup Venture Fund is lighting the way.