A recent study shows that Filipino startups plan to hold an initial public offering as a tool to tap new markets within and outside the Philippines.
Results of the 2017 Philippine Startup Survey also showed that Filipino startups wanted to make their businesses sustainable through improved tax incentives, greater ease in doing business and better access to capital.
Other findings will be unveiled during Slingshot Asean: Startup and Innovation Summit on Oct 20. at Philippine International Convention Center in Manila.
The survey, conducted by Isla Lipana & Co./PwC Philippines in partnership with QBO Philippines, the country’s first public-private initiative for startups formed in 2016, was an initiative of Ideaspace Foundation Inc., one of the founders of QBO Philippines.
The report said 35 percent of the respondents launched their startups in 2016 while 19 percent launched in 2017. Among the startups, 43 percent were in the pre-revenue phase, while 37 percent had annual revenues below P2 million. When they were starting their businesses, the top challenges they faced were capital requirements, regulatory requirements and general economic/business conditions.
About 63 percent planned to raise equity financing to finance their growth. Of this, 43 percent were planning to raise less than $1 million in the next three to five years, while 27 percent were planning to raise between $1 million and $3 million. A big portion of the start-ups, at 94 percent, were planning to welcome an investor in the next three years.