Holy Angel University

School of Business and Accountancy

Accountancy Department

Economic Development
Summer term

News Clipping

Submitted by:
Samia, Kyla Alyssa D.

A-221

Submitted to:
Dr. Maria Lina T. Ramoneda

June 27, 2023

News Clippings

Philstar.com
June 23, 2023 | 12:31 pm
Kaya Founders

MANILA, Philippines — Local venture capital firm Kaya Founders is keen on seeing
the domestic policy environment turn predictable for entrepreneurs, especially if the
national government hopes to attract foreign investors by the dozen. That was what
Paulo Campos, founding managing general partner over at Kaya Founders, told
Philstar.com in an exclusive interview. Campos suggested that there used to be a time
when a bulk of investments in the country came from wealthy families. That’s not the
case now, since funds from Singapore, Hong Kong, the Middle East, China and the
United States are looking to invest in the local startup scene.

“They’ll only do so if they see that there’s some predictable policy environment,” he
said.

Data provided by Kaya Founders showed that venture funding in the Philippines hit
$1.03 billion in 2021, skyrocketing 178% year-on-year compared to 2020 when the
global economy contracted due to the COVID-19 pandemic. That said, it also comes
down to the ease of doing business, as Campos said that the policy environment
should ensure that startups thrive at the moment of registration. This also meant
crafting public policy that will foster early-stage entrepreneurship, such as technical
training and software development.

Tech scene, startups

The venture capital firm is bullish on market conditions at home.

This came at a precarious time, as venture capitalists all over the world are seeing
investment activities get bogged down by headwinds. Southeast Asia remains a bright
spot for startups and venture capital firms alike. Campos said they were targeting to
invest in 50 to 70 startups in the Philippines, burning through $150,000-500,000 in
funding for early-stage startups. That target is set over the next five years, covering
the entire term of the Marcos Jr. administration. “The burgeoning tech scene in the
Philippines is reminiscent of previous growth narratives seen in markets such as India
in the 2000s and Indonesia over the past decade,” Campos added. —Ramon
Royandoyan
Source: https://www.philstar.com/business/2023/06/23/2276030/kaya-founders-
predictable-policy-environment-will-attract-inves
News Clippings

Insights

Paulo Campos, the founding manager of Kaya Founders, a local venture capital
firm, stated that if the domestic policy environment becomes predictable for
entrepreneurs, this will attract foreign investors by the dozen. This comes down to the
ease of doing business and the fact that venture funding in the Philippines reached
$1.03 billion in 2021, peaking 178% year-on year compared to 2020 when COVID-19
emerged. This also meant crafting public policy that will foster early-stage
entrepreneurship, such as technical training and software development.

Furthermore, among the four sectors affected by this news is first,

environmental activists. With the given news, legislators might be motivated to begin
the process of creating better domestic environmental policy, which will turn in favor
to the international investors. This is with the assumption that the bill that will be
created will have a positive impact on the environment rather than have a negative
impact. Certainly, environmental activists will be happy to see the government putting
the environment as one of the priorities for the country. Second, the Philippine
government will also be delighted with the news since if international investors will get
attracted to the country, better job opportunities and income tax will be given which
can result in higher revenue for the country. Third, international investors are elated
as well since some of their concerns are addressed and amplified by this news which
the Philippine government can take action with. Fourth, unemployed Filipino citizens
are feeling ecstatic because if international investors enter the country, they will have
the opportunity to find a job with a stable income as mentioned in the second point.
All these given sectors are affected in a positive way by this news because it is in favor
of them.

On the other hand, there are some sectors that are negatively affected. First,
local businesses here in the Philippines are not impressed by this news because if the
legislators pass better and predictable domestic policy, there will also be an increase
in competition in various markets. Second, surrounding countries might possibly be
threatened by this news since they also want to be part of the booming business and
economy by getting more international investors. They might now begin or maintain
better domestic environment policy to snatch away the opportunities given to the
Philippines. All these given sectors are affected in a negative way by this news
because it is against and unfavorable with them.

Overall, it can be concluded how everything in the economy is interconnected

and interrelated. Just like a domino effect which affects one sector to another. As a
student of economics, I can contribute by speaking out about better domestic policy
in social media and sharing the advantages of news to my friends and family. Not only
that but also, I can also support and buy local products to help the affected local
businesses.