THE Cebu Chamber of Commerce and Industry (CCCI) will push through with the creation of an angel investors group to help startup projects in Cebu take off.
Although this project has already been initiated, CCCI president Virgilio Espeleta said the plan to create the group did not materialize due to issues concerning the organizational structure.
But he said that during his term, he will push for the realization of this project.
“We have to help the Cebuano startups to monetize their creations. The chamber will develop a platform that will link the innovators and the capitalists,” Espeleta said.
“We just need to formalize the mechanics on how to go about this,” he added. “Guidelines will have to be formulated within the chamber.”
An angel investor is an affluent individual who provides capital for a business startup.
According to Espeleta, the interest to support technology startup projects is high among the members of the chamber.
He said they can start with a few interested capitalists that will not only finance the project but also hand-hold startup entrepreneurs in their entrepreneurial journey.
“The group will also act as business mentors,” said Espeleta.
In June 2018, the Department of Trade and Industry (DTI) conducted an angel investing seminar for members of the CCCI and the Mandaue Chamber of Commerce and Industry.
The seminar was meant to make the business community understand the dynamics of startups and angel investing for them to have better and informed investment decisions.
“We target those entrepreneurs who are ready for this thinking. We want them to be more open in working with our startups,” said DTI 7 Assistant Director Ma. Elena Arbon, adding that a startup venture is a high-risk-high-reward undertaking.
“The business community can provide mentorship for our startups or traction in their operations,” she said.
Funding remains a top challenge for local startups to flourish.
According to a study by QBO Innovation Hub and PwC Philippines in 2017, startup founders cited capital requirement (88 percent) as the top hindrance they encountered when starting their businesses, followed by regulatory requirements (54 percent) and general economics and business conditions (50 percent).
As of 2017, there were more than 300 startups in the Philippines, most of which were founded between 2012 and 2017, the study said. (KOC)