Stages of Venture Capital

Pre-seed Stage – getting ready and preparing all the resources that you’ll need to start an operation.

Seed stage – this how will you visualize and demonstrate potential idea to develop your operation, with
a specific activity involved.

Series A Stage – completed business plan with product market fit, and probability of consistent revenue
flow. Investor measures potential

Series B Stage – supports actual product manufacturing and sales operation, requiring larger capital
investment. Actual performance and evidence of a commercially viable product or service to support
future fund raising, also gives performance metrics investors confidence that you and the company can
achieve success.

The expansion stage (c and beyond) – growth path, achieve success and incremental funding will help
you build new product. producing exponential growth and consistent profitability

Mezzanine stage - The final stage of venture capital marks your transition to a liquidity event, either an
exit via going public or M&A. Entering the mezzanine stage it’s often also called the bridge stage or pre-
public stage means you are a full-fledged, viable business

Group 5

• Startup ecosystem means formed by people

• Start-up ecosystems are controlled by both external and internal factors.

• Internal factors not only control ecosystem processes but are also controlled by them and are
often subject to feedback loops.

Elements

 Ideas, inventions and researches

 Start-ups at various stages
 Entrepreneurs
 Start-up team members
 Angel investors
 Start-up mentors
 Start-up advisors
 Other entrepreneurial minded people
 Third people from other organizations with start-up activities
Common Start up Problems

Planning-Related Problems- Businesses need to prepare short-term and long-term plans

The Impact of Poor Leadership- Ineffective leadership can be a cause of business failure

Indistinguishable Products- Having a good product or service isn't enough to make a business successful.

Failure to Listen to Customers- A lot of businesses don't treat customers as if they're important

Learning From Failures- Failure is obviously an unpleasant thing, though it does provide an opportunity
to learn.

Insufficient Capital- A business that doesn't have much capital available may have a hard time getting the
attention of investors.

The Importance of Location- Choosing a location that doesn't serve your customers well can create a
problem that is simply too difficult to overcome.

Grow With Caution- Growing, or scaling, your business is a positive step, but only if the timing is right.

RA 11337

Innovative Start up

It is hereby declared the policy of the State to foster inclusive growth through an innovative economy by
streamlining government and nongovernment initiatives, in both local and international spheres, to
create new jobs and opportunities, improve production, and advance innovation and trade in the
country.

Host agency - government agency, local government unit, or public academic institution that provides
programs, benefits and incentives to startups or startup enablers.

Innovation – the creation of new ideas that results to the development of new or improved products,
processes, or services which are then spread or transferred across the market;

Innovative product – a good or service that is new or significantly improved, such as improvements in
technical specifications, component materials, software in the product, user friendliness or other
functional characteristics;

Innovative process – a new or significantly improved production or delivery method through changes in
techniques, equipment and/or software;

e) Innovative business model – a new organizational method in business practices, workplace

organization or external relations;
(f) Research and development – any activity which is a systematic, intensive study directed toward
greater knowledge or understanding of the subject studied: a systematic study directed specifically
toward applying new knowledge to meet a recognized need; or a systematic application of knowledge
toward the production of useful materials, devices, and systems or methods, including design,
development, and improvement of prototypes and new processes to meet specific requirements;

(g) Startup – any person or registered entity in the Philippines which aims to develop an innovative
product, process, or business model; and

(h) Startup enabler – any person or registered entity in the Philippines registered under the Philippine
Startup Development Program that provides goods, services, or capital identified to be crucial in
supporting the operation and growth of startups by the DTI in consultation with DOST, DICT, and
pertinent government and nongovernment organizations (NGOs).

Program objectives

 Support the research and development of startups and startup enablers in the Philippines;
 Support and promote the access to startup development programs, such as, but not limited to,
capacity building, exchange programs, and expert training courses, offered locally and
internationally for startups, startup enablers, and the implementers of the Program;
 Support and promote the participation of startups in international competitions and conferences
integral to the promotion of the Philippine startup ecosystem;
 Support the participation of startups in local and international events which aim to link them to
potential investors, mentors, collaborators, and customers;

 Support the collaboration of startups, startup enablers, national government agencies, local
government units, public and private academic institutions, and industry partners to develop
innovative products, processes or business models which may be utilized in the delivery of public
services, programs, or projects of host agencies;

 Support the development and growth of enterprises whose innovative product, service, or
business model is integral to creating a competitive startup community in the Philippines; and

 Develop and amend policies and regulations to address or remove undue restrictions in the
implementation of the Program, and in the development, establishment, and growth of startups
and startup enablers to promote ease of doing business.

General Roles and Responsibilities of the Host Agencies.

The DOST, DTI, DICT and other host agencies shall have the following general roles and
responsibilities in the implementation of this Act:
 Promulgate the appropriate policies and guidelines for the coordinated implementation of the
Program;
 Assess impact and applicability of the benefits and incentives that compose the Program;
 Promote the access to the benefits, incentives, and opportunities for startups and startup
enablers; and
 Ensure the immediate and efficient provision of the benefits and incentives provided under this
Act.
