Pangilinan turns venture capitalist in search of next big Pinoy business idea

Business mogul Manuel V. Pangilinan said he's willing to bet P100 million a year for the next five years on the best new business ideas in a new national competition that he announced Wednesday. "The desire is to take a 20 percent stake in the business should they commercially launch,” Pangilinan explained. The business risk will be spread by bringing in venture capital partners. Pangilinan urged young Filipinos “to come out of their shell and dare to create and innovate.”

 

In an informal chat with journalists and bloggers in Makati on Wednesday, Pangilinan assured that ideas that pass scrutiny will get startup finance.

 

“We are prepared to meet the rate of failures this program will engender. That’s fine with us. I suspect that the P100 million might get wasted. That’s fine.”

 

Ideaspace, the venture capital vehicle for the national competition of business ideas, will get P100 million each year for five years, according to Pangilinan’s lead implementers, Earl Valencia and Martin Quan.

 

“At the end of the day when we get down to it,… it’s social investment by the group,… part of the corporate social responsibility to this country,” Pangilinan pointed out.

 

“We want the youth to dare, to innovate… to come out of their shell… if they’re not afraid to act or sing, they should not be afraid to create, innovate,” he added.  

Scope of funding to increase manifold The open competition is slated to start in earnest in May. Details such as the composition, functions and powers of the selection committee and the board of judges are still being worked out.

 

Aside from project finance, Ideaspace and the diversified array of corporate giants under Pangilinan’s management will provide mentorship, software management, and access to the market.

 

If the business thrives, “the scope of the funding will increase in a manifold way,” he said.

 

Cognizant of the harsh realities of the business environment, Pangilinan noted “the first few years of operations will incur quite a bit of loss so that will drive the risk and reward sharing… We are prepared to front end the risk of the venture.”

 

There will be intellectual property protection for the technopreneurs who get Ideaspace financing, he said.

 

“We want to make sure that the technopreneur continues to have a material stake…The technopreneur must have a continuing stake,” he added.

 

The initial grant of P500,000 for six months will include rent of the facilities the startup will need.

 

“Beyond that is sort of deep waters… as the inventor tries to translate his product that is commercially feasible,” Pangilinan said.

 

He expects rough sailing for the startups and assures that he will be a steadfast partner of the technopreneur.

 

“There will be a high failure rate, but that doesn’t mean we shouldn’t commit…There may be some with medium or moderate success, that’s good enough for us,” said Pangilinan. —VS/HS, GMA News