At the annual Digital Pilipinas Festival, experts in the field of finance and emerging technologies showed attendees a clear picture of the Philippines’ current situation in terms of its digitalization drive, what can be improved, the challenges that lie ahead when embarking in the digital world, and how to navigate setbacks and address risks.
The two-day event at the SM Aura in Bonifacio Global City, Taguig, organized by the private sector-led movement Digital Pilipinas, saw startups and small and medium-sized enterprises (SMEs) showcase their products and services to a broader audience. Their presence at the Digital Pilipinas Festival served as a symbol to further innovation and grow collaboration.
In recent conferences covered by CoinGeek, speakers have noted the hardships startups face in developing their businesses and keeping them afloat, with 90% of global startups having to close down their operations after failing to flourish in the competitive market. While several factors often lead to a business’s demise, one major element is not getting funding from venture capitalists (VCs).
Weighing the potential
A panel moderated by Digital Pilipinas lead convenor Amor Maclang touched on the topic of investments, with the almost 20-minute discussion revolving around the potential of the Philippines to lure investors as it makes headway in its digital transformation, the importance of securing cash, and which businesses could be the country’s next unicorn.
“At the end of the day, there is no digital economy here unless you ‘hashtag show me the money,'” Maclang quipped as she started the talk with panelists nChain Co-founder and Executive Chairman Stefan Matthews, Yolo Group CCO Steve Tsao, and Creador Managing Director Omar Mahmoud.
While some may see the Philippines’ underdeveloped sectors as a setback, nChain perceives it as an opportunity to showcase innovation, looking at blockchain technology as the key to tackling recurring decades-long problems and reaching the country’s digital ambitions to greater heights.
“Digital transformation means social impact,” said Matthews, noting that in this age and time, “the opportunity to invest, bring the right technology into this country, work in partnerships with government and enterprise, and make a profound social impact” is what matters most.
Utilizing the right technology is equally important as investing in the right industry, prompting Maclang to ask the panelists on which local sector investors should pour their money.
Investors have their own view on which industries or businesses will boom and which will flop, but what is vital when selecting where to invest is where the real utility is, noted Tsao.
“Try to invest in things that could provide a lot of help,” he said.
While much of the work in developing products and services lies in the hands of enterprises, the government remains a crucial part of the equation, and for Tsao, while its priority is to devise a strategy that would help bring in more investors in the country, it should also focus on ramping up its support to entrepreneurs.
“We need to protect actual Filipino entrepreneurs,” he said. “The Philippines lacks the antibodies of foreign entrance that Indonesia, Thailand, Vietnam naturally have.”
Explaining his statement, Tsao said the Philippines is very welcoming to foreign entrepreneurs, and while this isn’t entirely bad for the economy, it is a challenge for local businesses, especially for startups that would have to deal with heightened competition against companies that already have a proven track record from other countries.
Mahmoud, for his part, sees enormous potential for the Philippines in terms of securing investments, citing the country’s creative talent pool. However, echoing Tsao’s remark, he emphasized that in order for local businesses to thrive, the government should expand its support and create more incentives.
Although the Philippines is lacking in some areas, Matthews noted that the mere fact that the government has taken the initiative to push for digitalization is a sign that it is on the right track toward innovation.
As an advocate of innovation herself, Maclang believes that it is only a matter of time before the Philippines gives birth to another unicorn. Curious about whether the panelists share the same sentiment, Maclang asked about their fearless forecast on what firm they think will earn unicorn status in the next couple of years.
Currently, the Philippines has two fintech unicorns—Mynt and Voyager Innovations.
The panelists declined to give her straight answers, citing their biases. Tsao made a stark statement on the matter, saying that businesses have the ability to become a unicorn, but the real question should be is whose investor would drop the huge sum on a startup or enterprise that has yet to achieve success somewhere else.
London Tech Week
While the Digital Pilipinas Festival has concluded and many have to wait another year before its return, Maclang assured that Digital Pilipinas will continue to participate in conferences and build ties with other countries, governments, and the private sector to continue its drive to strive for innovation.
In this regard, Maclang announced the participation of Digital Pilipinas in the London Tech Week, which will take place from June 10-14, 2024, at the Olympia Exhibition Centre, United Kingdom, where over 300 speakers from various sectors are expected to attend.
Hyping up the audience, Maclang said the London Tech Week will not only benefit the local fintech sector but would also aid the Philippines in tackling and gaining a better insight into cybersecurity, which the U.K. is known to be a leader of.
Watch: Bataan Government & nChain are aiming to bring the Philippines to its golden digital age
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