According to a statement released by the company, this money, known as Fund 2, will be used by Kickstart Ventures to “drive the rapid growth of high-potential startups.”
The statement went on to add, “This growth fund or Fund 2 targets startups in expansion mode anywhere in the world with clear regional and global prospects.”
Launched in 2012 with an initial US$2.4M followed by an additional US$1.1M seed fund, this war chest was known as Fund 1 and focussed on seed and early-stage startups. Fund 2, on the other hand, is aimed at more developed startups that have validated their product-market fit and are now looking to expand.
“In the Philippines, I have yet to see a startup break through in a big way, not because of lack of talent but because the whole sector is devoid of support. Large tech incumbents operate well here, but startups struggle,” said Ernest L Cu, President and CEO, Globe Telecom, explaining the Fund’s rationale.
He added, “Globe has been finding and working with smaller, innovative startups to boost the quality of its customer experience, with very good results. So good that they get acquired by large global companies at respectably higher valuations! Seeing this potential, we believe that Kickstart can use the VC fund to help our startup partners to scale even faster via an equity investment.”
Fund 2 will be focussed on telecommunications, media, data analytics, Internet of Things, financial services, health, education, IT security and energy.
“We are looking for startups that have strategic capabilities of value to communications and digital companies, in which we could invest more significant sums at Series A round and beyond to drive customer adoption and market momentum. These startups can be anywhere in the world and this new fund underscores our confidence that Philippine capital and the Philippine market will support innovation,” said Minette Navarrete, President, Kickstart Ventures.