Private financier offers startup capital for techno-preneurs

Start up companies engaged in Information Technology (IT) product and services offering could take advantage of private companies offering capital infusion, amid the government's lack of financing assistance to small company operations.

Venture capitalists are acting as saviors for techno-preneurs who have great business ideas, but are discouraged due to lack of capitalization to pursue a legitimate business operation.

Paco Sandejas, Managing Partner of Narra Venture Capitalists (NarraVC) said good ideas in IT trade should be supported and nurtured, in order for it to flourish, just like any garage-started IT business that has make it big today.

In the Philippines, he said although there are a lot of great ideas in the ICT sector, especially in the software development, the inaccessibility to capital and other marketing expertise have hampered the sector from penetrating the global market.

Thus, he said venture capitalists have bigger role in the development of homegrown ICT related companies- in order to help developers finance promising ideas and products.

Sandejas who discussed on the Role of Venture Financing in IT and IT enabled services Industry, said there are a number of challenges techno-preneurs in the country are facing; these include-limited startup capital, no access to global market information, or no access to global market network, brain-drain, lack of scientist and engineers.

Venture Capitalists like NarraVC, are providing help to smaller companies, such as small software development company, in terms of expertise, in technical and marketing, financing requirements, effective business plan, among others.

Sandejas' NarraVC was established in 2002 to invest in private high-technology companies with potential for strong growth.

Narra focuses its investments on companies with defensible barriers to competition, which are normally based on cutting edge technology or their efficient deployment.

According to Sandejas, unless the Philippine government catches up, there are only two effective partners that would bring up the ICT industry in the Philippines to the fullest, the techno-preneurs and the venture capitalists.

In Silicon Valley and similar technonology centers, Narra invests in companies developing semiconductors and semiconductor-related products, converged communication systems, computing platforms, and software and related services. Narra works with Silicon Valley based partners like Tallwood Venture Capital on these investments.

In the Philippines and around Asia, Narra seeks companies that take advantage of the synergry with advanced technology companies, such as software services, electronic manufacturing services, design services, and information systems more customized for developing regions.

NarraVC has an established group of founding Limited Partners led by Dado Banatao, Managing Partner of TallwoodVC, and Ayala Corporation, the Philippines most respected business conglomerate. Investment management is led by Sandejas and his group at BGN Ventures, Inc.(Narra's Philippine affiliate).

Investments are in the range of one million US dollars. In the United States, they typically are for minority shareholdings together with trusted venture capital co-investors. In Asia and in the Philippines, in particular, Narra also incubates its own projects.