IPR issue stalls setup of Venture Capital

CEBU, Philippines - Although the bid to start the Venture Capital (VC) market in Cebu is appetizing to the business sector, the government still has to settle some regulatory rules, specifically in protecting the Intellectual Property Rights (IPR), before a VC culture could take off. 

Cebu Chamber of Commerce and Industry (CCCI) past president Francis O. Monera said there are a lot of IT entrepreneurs in Cebu who have good concepts and ideas, however, both IT geeks and capitalists still have to meet half way on how to come up with good strategy for IPR, as current process is too complicated.

 “We need to improve on the IPR side,” said Monera, who is also chairman of the board of the Cebu Educational Development for Information Technology Inc. (Cedfit).

In a recent IT summit held in Cebu, industry leaders expressed interest to pursue the VC culture here to push Cebu’s bid of becoming the next Silicon Valley.

 In order to maximize the good talent pool in Cebu, a need to develop VC is vital, said IT prime mover Gerry Rapes.

Businessmen are encouraged to embrace the VC concept as this is one of the measures that indicate the maturity of an ICT industry, said Rapes.

Venture capitalists are those businessmen who will take advantage of a good concept and offer to fund the idea as well as market the product.

However, the formation of a group of Venture Capitalists here would entail a thorough study on how to go about it, including the establishment of good mechanism that would give an effective venture capital market in Cebu.

Businesses that could be funded through Venture Capital would not only limit to Information Technology (IT) related start-ups, but also feasible ideas from the grassroots, or those business concepts that are developed by students.

Although the VC concept has been floated in Cebu in the last couple of years, this opportunity has not been seriously taken into consideration by businessmen here.

In 2007, Cebuano entrepreneur-advocates started to consider the VC idea, however up to this time the formation of venture capital in Cebu has not taken off.

Venture Capitalism, is only known most especially in the IT sector, of which in other countries, successful businessmen grouped together to fund good projects in relation to IT products and services.

 A few years back, the Ayala Group attempted to create the “idea farm” facility in Cebu, wherein it encouraged techno-prenuers to present their concepts involving innovation and the Ayala Group will serve as the Venture Capitalist once the company sees a huge business potential from a concept. But the project was later called off.   

Without a venture capitalist, a potential idea may be wasted, while only those few aspiring entrepreneurs or techno-prenuers who have good monetary back up will be able to take off in business. (FREEMAN)