MVP Group allots $500M for tech incubation plan

MANILA, Philippines - The group of telecommunications magnate Manuel V. Pangilinan is allotting around $500 million over the next five years for a long-term incubator program to fuel Filipino technology start-ups and help them reach their ultimate potential.

In an interview yesterday, Pangilinan said his companies would shell out $100 million a year to help stir the creative and innovative spirit in Filipino entrepreneurs.

 “We want to encourage Filipinos to develop a spirit of entrepreneurship. We want them to have a passion to be great and make a difference,” he said.

Pangilinan said a non-profit foundation to be called IdeaSpace would implement the program. The funding will come from MVP-led companies like Philippine Long Distance Telephone Co., First Pacific Co. Ltd., Manila Electric Co., Smart Communications, Digitel, Sun Cellular, SPi Global, ePLDT, Indofood, Philex Mining, Maynilad, MPIC Hospital Group, MediaQuest and TV5.

Pangilinan said while the program is open to the public, the group favors start-ups from different colleges and universities. “While they’re young, we want them to take the risk. They should not be afraid to fail. We want to create a network of entrepreneurs, tech people that will become self-replicating.”

He said this initiative will be a long-term effort, noting the tremendous effort and patience for an uncertain outcome.

With IdeaSpace, Pangilinan is hoping that the Philippines can replicate the success of Silicon Valley in the US, the mecca of venture capital and social web applications.

IdeaSpace targets start-ups that can scale in the industries of water and power utilities, toll roads and transportation, healthcare, mining, telecommunications, media and food.

Pangilinan said the program is also open to applicants focused on solutions for other industries but have potentially significant global potential.

The group will launch next month a national competition for the first batch of start-ups who will be immersed in an incubator program, which will include provision for office and IT space and facilities in Makati and in the group’s Leadership Academy in Antipolo.

Aside from funding, each incubated company will go through a structured program hosted by the Leadership Academy to teach them the fundamentals on how to run a successful and scalable business.

Benefits include mentorship from executives from the group companies, access to resources including legal assistance and advice, operational control, and a clear partner route to markets served by any company in the group – whose range of business translate to millions of households, subscribers, motorists and others.