According to James Lette, executive director of Manila Angel Investors Network, much of the Philippine startup ecosystem is close to the point of bankruptcy or closure.
"A collapse in consumer demand, an inability to provide services during the Extended Community Quarantine period, and soaring corporate late payment rates as cash flows tighten have significantly affected startup revenues and compressed their runways. A generation of Filipino startups could be wiped out without further specialized liquidity support," he wrote in a column for SparkUp, BusinessWorld’s news and knowledge-sharing hub for Philippine startups.
In this episode of B-Side, Mr. Lette expands on his piece and speaks with SparkUp editor Santiago J. Arnaiz about why and how the Philippine startup ecosystem must be saved. "Without action, the Philippines will be left behind, and startups domiciled in other ASEAN countries will capture our home market," Mr. Lette said, as he called for the "establishment of a blended finance facility to issue bridging finance, alongside private sector funds, in the form of convertible loans, to technology startups impacted by COVID-19."
Recorded remotely on June 15. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.
