By Beatriz Marie D. Cruz, Correspondent
VENTURE capital Kickstart Ventures, Inc. aims to finance up to five startups in the Philippines and abroad this year that emphasize artificial intelligence (AI) and cybersecurity.
“We anticipate finalizing between three to five new agreements this year,” Joan Yao, vice-president of investments at Kickstart Ventures, informed BusinessWorld during a video interview. “We have a considerable amount of funding also allocated to keep supporting our current companies.”
The firm completed five agreements last year with startups in e-commerce, retail, AI, cybersecurity, and health, she mentioned.
Kickstart Ventures was established in 2012 as a corporate incubator for Globe Telecom, Inc., beginning with a fund of $2.5 million (P144.8 million).
Kickstart Ventures intends to concentrate on AI startups to assist Globe and Ayala Corp. in enhancing their ability to implement AI, Ms. Yao stated. “Some aspects will remain constant, in that I believe AI continues to be a sector with significant activity, innovation, and interest.”
Kickstart Ventures maintains a portfolio of approximately 70 companies, including Skillshare, edamama, coins.ph, Kumu, Zalora, and Pickup Coffee.
“We are both trying to pursue and invest in new initiatives, but will also keep supporting the existing portfolio to ensure we achieve favorable results and returns,” Ms. Yao expressed.
In 2024, the Philippine startup ecosystem experienced the rise of “tech fog,” said Kickstart Ventures Vice-President of Investments Mike Maté. “Conditions remain somewhat unclear, and it’s uncertain what will occur in the future.”
“What we’re witnessing is somewhat of an overpowering emergence from the previous tech winter,” he remarked, referring to the slowdown in the technology sector following a phase of rapid expansion. “Now it’s more akin to a tech fog.”
“However, that winter is gradually paving the way for spring, albeit still in a fog. In foggy conditions, you know your destination but can’t quite see the path.”
To navigate out of the “tech fog,” the startup sector needs to “truly return to the basics.” “Thus, for startups, this involves prioritizing unit economics, profitability, and placing less emphasis on the rapid growth we’ve observed,” Mr. Maté stated.
Numerous startups within Kickstart Ventures’ portfolio have been “realigning their strategies to focus more on achieving profitability and becoming fundamentally robust.”
Venture capitalists have been concentrating on startups exhibiting quality fundamentals, extended cash runway, and established commercial viability, Mr. Maté noted.
Financial inclusion and online-to-offline commerce offer avenues for growth and innovation within the startup domain, Ms. Yao asserted.
To enhance the progress of startups in the Philippines, Kickstart highlighted the necessity to simplify business operations, reduce bureaucratic obstacles, enhance digitalization, and elevate transparency.
Ms. Yao also emphasized the importance of the startup community collaborating with more educational institutions.
“I believe talent gravitates towards areas with opportunity; ultimately, it’s about persuading individuals that opportunities exist here and that significant achievements can be realized.”
