Startups rely heavily on funding opportunities for growth and sustainability. These funds provide vital financial aid resources and support that transform innovative ideas into viable businesses. Government initiatives in the country offer grants, loans, and mentorship, which aid in product development, market entry, and b
The increasing value of the startup ecosystem in the Philippines, highlighted by Undersecretary Rafaelita Aldaba of the Department of Trade and Industry, underscores the importance of these funding programs. As the Manila startup ecosystem surged from USD 584 million to USD 2.1 billion, it is clear that robust financial support from the government, driven by the Innovative Startup Act, is vital for nurturing entrepreneurial growth and transforming the country into a real emerging startup destination.
Types of Funding Opportunities for Startups
The startup ecosystem in the Philippines has seen significant growth due to various government funding initiatives designed to support emerging businesses. These programs provide essential financial assistance and resources, helping startups at different stages to innovate, develop, and commercialize their products and services effectively. Below are the key categories of funding opportunities based on their purpose.
- Pre-commercialization Support: These programs provide funding and assistance to startups developing prototypes or minimum viable products (MVPs), focusing on research, validation, and skills development.
- Early-stage Support: These initiatives target early-stage startups, providing financial aid, mentorship, and resources to help them refine their business models and enhance their market potential.
- Commercialization Assistance: These programs focus on supporting startups in the process of commercialization, offering funding options, loans, and incubation support to help them bring their innovations to market effectively.
By categorizing these funding opportunities, startups can better identify which programs align with their current stage and specific needs, enabling them to take advantage of the support available to drive their growth and success.
For more detailed information on the actual startup financing programs available for you to check, please read below:
1. Technology Innovation for Commercialization (TECHNiCOM)
Stage Focus: Pre-commercialization (with rough prototype or MVP)
Agency: Department of Science and Technology – Technology Application and Promotion Institute (DOST-TAPI)
TECHNiCOM is a government program that provides funding assistance to startups in the pre-commercialization phase, specifically those developing prototypes or MVPs. The program supports research and development (R&D) outputs by helping startups transition their innovations into market-ready products. TECHNiCOM focuses on projects that align with the national R&D agenda, providing necessary resources for prototyping, pilot testing, and validation. Startups can benefit from the program’s wide-ranging support for technology development and business model testing. The primary goal is to accelerate commercialization through financial grants and strategic assistance.
Purpose: To fast-track the commercialization of R&D outputs by providing funding and support to Filipino startups.
Benefits to Startups:
- Financial grants for product development
- Assistance with prototyping and pilot-scale testing
- Technology validation and market research
- Business model validation
- Support in pre-investment activities
2. Youth Empowerment through Technopreneurship (YET)
Stage Focus: Pre-commercialization
Agency: Department of Science and Technology – Technology Application and Promotion Institute (DOST-TAPI)
The YET program is designed to support income-generating projects led by young entrepreneurs, particularly college students and young professionals. It provides access to financial aid, along with entrepreneurial skills development. The program offers funding of up to PHP 250,000 per institution for college students and up to PHP 350,000 per project for young professionals. It covers various resources such as raw materials, tools, equipment, packaging, and programming-related expenses. Through YET, youth-driven projects are empowered to turn ideas into viable ventures.
Purpose: To promote youth entrepreneurship and help young individuals develop the necessary skills and financial support to launch their projects.
Benefits to Startups:
- Funding support (up to PHP 350,000)
- Access to entrepreneurial training
- Coverage for production tools and equipment
- Support for packaging and labeling costs
- Access to technology-related resources
3. Startup Grant Fund (SGF) Program
Stage Focus: Early-stage (with working prototype/proof of concept)
Agency: Department of Science and Technology – Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD)
The Startup Grant Fund (SGF) Program was initiated by the Department of Science and Technology (DOST) in 2020 to aid startups and SMEs in their research and development efforts. Since its inception, the program has funded 27 projects, amounting to PHP 89 million in total. These projects include notable startups like Nanotronics, Inc., which uses nanomaterials from local plants, and Futuristic Aviation and Maritime Enterprises (FAME), which provides real-time monitoring solutions for transportation sectors. The program aims to support industries in adapting to the “Next Normal” with specific focus on sustainable industries, education, remote work, content, and data-driven solutions. The SGF continues to serve as a vital resource for fostering innovation in the Philippines.
Purpose: To support early-stage startups in their R&D activities, helping them thrive in post-pandemic industries.
Benefits to Startups:
- Research and development funding
- Support for sustainable industries
- Focus on education and remote work productivity
- Talent and content development opportunities
- Industry-specific data-driven solutions
4. Women-Helping-Women: Innovating Social Enterprises (WHWise)
Stage Focus: Early-stage (with working prototype/proof of concept)
Agency: Department of Science and Technology – Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD)
The WHWise program provides support for women-led startups by offering incubation services and financial aid. It assists 10 women entrepreneurs each year, focusing on social enterprises that create impactful solutions. The initiative released PHP 30 million in grant funding in its first year, benefiting nine women-led businesses. One of its beneficiaries, Empath, used the grant to improve their mental health services and operations. The program strengthens women entrepreneurs by addressing the unique challenges they face.
Purpose: Empower women-led social enterprises to grow and succeed in their respective industries.
Benefits to Startups:
- Customized incubation support
- Financial grants
- Networking opportunities
- Business development assistance
- Expansion support for operations and services
5. Venture Financing Programs (VFP)
Stage Focus: Commercialization
Agency: Department of Science and Technology – Technology Application and Promotion Institute (DOST-TAPI)
The Venture Financing Programs (VFP) are offered by DOST-TAPI to startups and small-to-medium enterprises (SMEs) that are in the process of commercialization. These programs provide soft loans, meaning there is no interest and no collateral required. The loanable amount can reach up to PHP 2 million to help cover costs like equipment purchases or fabrication. Borrowers must repay the loan within three years, with a six-month grace period. The program aims to boost startup ventures, particularly those based on intellectual property or technological innovation.
Purpose: To accelerate the commercialization of innovations and inventions for startups and SMEs in key industries.
Benefits to Startups:
- Soft loans with 0% interest
- No collateral required
- Loan amounts up to PHP 2 million
- 3-year repayment term with a 6-month grace period
- Focus on tech-based or IP-based projects
6. Environmentally-Sound Technologies (VFEST)
Stage Focus: Filipino-owned Startups and SMEs
Agency: Department of Science and Technology Technology Application and Promotion Institute (DOST-TAPI)
The VFEST program is designed to support Filipino startups and SMEs that promote local green technologies. Its main goal is to encourage the development of technologies that protect the environment, such as sustainable energy and pollution reduction innovations. Through this program, businesses can access up to PHP 2.5 million to fund equipment purchases for environmentally sound initiatives. The loan is repayable over 3 years, with a 6-month grace period. VFEST is an integral part of DOST-TAPI’s efforts to foster sustainable technopreneurship in the country.
Purpose: To support startups and SMEs focused on green technologies and environmental protection.
Benefits to Startups:
- Funding of up to PHP 2.5 million
- Equipment purchase support
- 3-year repayment term
- 6-month grace period
- Promotion of sustainable business practices
7. Commercialization of DOST-Generated Technologies
Stage Focus: Startups and SMEs adopting DOST-generated technologies
Agency: Department of Science and Technology (DOST-TAPI)
DOST funds various research and development projects, some of which lead to innovative technologies that could benefit businesses and communities. The challenge, however, is that not all of these technologies get adopted for mass production. To address this, DOST-TAPI provides financial support to Filipino-owned startups and SMEs that have licensed or adopted DOST-generated technologies. This venture financing program offers up to PHP 5 million in funding for necessary expenses like equipment and certifications. Repayment is expected within 3 years, with a 6-month grace period.
Purpose: To incentivize the commercialization of DOST-developed technologies by Filipino-owned startups and SMEs.
Benefits to Startups:
- Up to PHP 5 million funding
- Support for equipment purchases
- Assistance with local and international certifications (e.g., FDA, ISO)
- 6-month grace period for repayment
- 3 years to repay the loan
8. Purchase Order Financing Program
Stage Focus: Startups and SMEs that have benefited from previous DOST programs or adopted DOST technologies
Agency: Department of Science and Technology – Technology Application and Promotion Institute (DOST-TAPI)
The Purchase Order Financing Program supports startups and SMEs that struggle to meet customer orders because of limited financial resources. Unlike other programs aimed at equipment or fabrication, this program helps businesses finance the purchase of raw materials. Loans up to PHP 2.5 million are available, with a repayment period of three months and an additional three-month grace period. The program was developed to address the specific financial needs of growing businesses in the early stages of operation.
Purpose: To assist businesses in fulfilling customer purchase orders by providing financial support for raw material procurement.
Benefits to Startups:
- Loan of up to PHP 2.5 million
- 3-month repayment term
- 3-month grace period
- Focus on funding raw material purchases
- Helps meet customer demands efficiently
9. Level-up Innovation Government Support for Technologies Against the Spread of COVID-19 (LIGTAS-COVID-19)
Stage Focus: Startups and SMEs involved in the fight against COVID-19, especially DOST beneficiaries
Agency: Department of Science and Technology – Technology Application and Promotion Institute (DOST-TAPI)
LIGTAS-COVID-19 was created to help startups and SMEs stay afloat during the COVID-19 pandemic, particularly those providing essential services. Through this initiative, DOST-TAPI offers financial support of up to PHP 1 million to businesses. This funding allows them to purchase raw materials and continue operations. The program is especially for those that develop solutions in response to pandemic-related challenges. Repayment terms include a 12-month period with a 6-month grace period.
Purpose: To support startups and SMEs in addressing the challenges brought by the COVID-19 pandemic.
Benefits to Startups:
- Up to PHP 1 million funding
- Purchase raw materials
- Focused on pandemic-response businesses
- 12-month repayment term
- 6-month grace period
10. Startup Venture Fund
Stage Focus: Seed to Series B
Agency: Department of Trade and Industry – National Development Company (NDC)
The Startup Venture Fund (SVF) was launched by DTI-NDC during the Philippine Startup Week as a venture capital initiative aimed at enhancing the startup ecosystem in the Philippines. It has earmarked PHP 250 million to support startups from Seed to Series B stages. The program not only provides financial backing but also facilitates mentorship and training opportunities through collaborations with DTI and other startup support organizations. One of the first beneficiaries, Agro-Digital PH, exemplifies the program’s impact by securing PHP 100,000 through the Venture Pilipinas pitching competition. Additionally, Agro-Digital PH had previously participated in the Social Impact Accelerator, which was jointly implemented with the UN Development Programme and the Australian Embassy.
Purpose: To bolster the growth and sustainability of startups in the Philippines by providing financial resources and essential support services.
Benefits to Startups:
- Access to PHP 250 million in funding
- Mentorship and training opportunities
- Enhanced visibility through pitching competitions
- Collaboration with government and international organizations
- Support in scaling business operations from Seed to Series B stages
11. Startup Grant Fund
Stage Focus: Early-stage (with at least a proof of concept)
Agency: Department of Information and Communications Technology – ICT Industry Development Bureau
The Startup Grant Fund, initiated by the DICT-IIDB, aims to support new and early-stage startups in the Philippines. The program was introduced following a public consultation held in March to engage startup founders and enablers. It provides essential funding to help startups progress toward becoming investable and attract venture capital. Eligible participants include ICT-based startups that have registered as businesses in the country and obtained a startup number. The program specifically targets those in the stages of moving from proof of concept (POC) to prototype and from prototype to minimum viable product (MVP), as outlined in Section 8 of the DICT Department Circular 001 s. 2023.
Purpose: The primary purpose of the Startup Grant Fund is to empower early-stage startups by providing them with necessary funding to advance their projects and prepare for future investment opportunities.
Benefits to Startups:
- Access to starter funds for project development
- Support in becoming investable
- Eligibility for startups in various development stages (POC to prototype, prototype to MVP)
- Guidance from the DICT in navigating the startup ecosystem
- Preparation for attracting venture capital investment
12. PCHRD Startup Research Grant Program
Stage Focus: Early-stage startups in the health sector
Agency: Philippine Council for Health Research and Development (PCHRD) under the Department of Science and Technology (DOST)
The PCHRD Startup Research Grant Program was established under Republic Act No. 11337, known as the Innovative Startup Act, to bolster research and development (R&D) among Filipino startups. This program aims to enhance the technology, market potential, and existing products of eligible startups in the health sector. It provides financial assistance specifically for conducting research activities that can address R&D challenges. By supporting these startups, PCHRD aims to promote innovation and improve health outcomes in the Philippines. The program is part of a broader effort to strengthen the startup ecosystem through targeted funding and support.
Purpose: To provide financial assistance for research activities that help startups overcome R&D challenges and enhance their market presence.
Benefits to Startups:
- Access to the DOST/Council’s Grants-In-Aid (GIA) Program
- Follow-up financial assistance for scaling and expansion from other DOST offices
- Integration into the science and technology network of DOST and the Philippine National Health Research System
- Utilization of DOST Testing Laboratories and Research Facilities
- Connection to the DOST Technology Business Incubator (TBI) Network
13. FASTRAC Program
Stage Focus: Early-stage startups focusing on research and development commercialization
Agency: Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD)
The FASTRAC Program aims to facilitate the transition from research and development to commercialization of technologies funded by PCIEERD. Initiated in 2018, it has completed two iterations and currently supports five startups. The program emphasizes validating business models for products and services derived from research outputs through the establishment of spin-off companies. FASTRAC follows the SPRINT Program, which provides training for researchers in innovation and entrepreneurship. The program spans 1 to 2 years and addresses technical gaps to meet performance benchmarks for products and services.
Purpose: To bridge the gap between research outputs and market-ready products through validated business models and spin-off operations.
Benefits to Startups:
- Access to funding for product and service development
- Support in validating business and financial models
- Assistance in addressing technical performance gaps
- Opportunities for performance tests and certifications
- Facilitation of business registration and technology licensing for spin-offs
14. FASTRAC Lite Program
Stage Focus: Technology commercialization
Agency: Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD)
The FASTRAC Lite Program aims to bridge the gap between research and commercialization of technologies funded by PCIEERD. It focuses on translating research outputs into scalable and market-ready products that can be licensed to initial adopters or manufacturing companies. This program serves as a follow-up to researchers who have completed the Short-Term Program for Researchers for Innovation and Technopreneurship (SPRINT Program), which equips them with essential skills for commercialization. The FASTRAC Lite initiative is designed to address technical gaps, validate market segments, and demonstrate technology deployment to target partners. Over a one-year period, it prepares participants for performance testing and compliance with applicable standards.
Purpose: To facilitate the commercialization of research outputs and support researchers in developing market-ready technologies.
Benefits to Startups:
- Addresses technical gaps to meet performance benchmarks
- Validates target market segments based on the SPRINT program
- Develops customized product and service packages
- Demonstrates technology to potential partners and initial adopters
- Prepares for performance testing and certification
- Supports partnership agreements for technology adoption
- Facilitates the transition to Technology License Agreements after program completion
Video: Government Funding Opportunities for Startups in the Philippines – DOST PCIEERD
Learn more about the government funding opportunities for the different startups in the Philippines by watching this video from PhilDev:
Summary
The Philippines does, indeed, offer a diverse range of funding opportunities designed to support startups at various stages of development. As the startup ecosystem rapidly grows, maintaining momentum is crucial for addressing challenges and fostering positive impacts for the Filipino community. While government support continues to strengthen, the collective effort of all stakeholders is essential to elevate the nation as a premier startup destination. By leveraging these funding resources, entrepreneurs can unlock their potential and contribute to a thriving, innovative economy.