National Development Company
About the Program
In response to the continuing need for new voices in the business community and new ways of thinking, the Department of Trade and Industry (DTI), in partnership with the National Development Company (NDC), established the Startup Venture Fund (SVF) under Republic Act No. 11337, or the Innovative Startup Act.
The Innovative Startup Act mandates different government agencies and offices to allocate benefits, incentives, and financial capabilities to highly potential startups to cultivate innovative ideas, products, and services that contribute to industrial and sustainable development. Under the Innovative Startup Act, NDC is mandated to administer the Startup Venture Fund, supporting high-potential startups through strategic investments.
Historical Timeline
With the approved IRR for Republic Act No. 11337, NDC was formally mandated to co-manage the Startup Venture Fund with the Department of Trade and Industry.
NDC led multistakeholder consultations and drafting sessions for the Startup Venture Fund Guidelines that still govern implementation today.
The SVF Guidelines were launched during Philippine Startup Week 2021, giving startups and venture partners a formal entry point into the program.
The first SVF Investment Committee meeting was held in April 2022, establishing the first formal approval cycle for startup investments.
SolX Technologies Inc. and Humble Sustainability became the first two SVF beneficiaries, with NDC maintaining an ownership stake in both.
Organizational Structure
They are assigned to the overall governance of the SVF program. They provide strategic guidance and oversight.
The main approving body for SVF investment decisions on startup investments, CIP accreditations, alternative funding models, and more.
Primarily performs the day-to-day management of the fund, including deal sourcing, initial evaluation, due diligence, and portfolio monitoring.
SolX provides clients with an Energy Management System, expert consultancy backed by accurate data collection, and access to a reverse-auction marketplace for contestable energy users.
A circular economy startup focused on reuse, recovery, restoration, and recirculation of products and materials.
Partners
Startups that are based in the Philippines, should be registered with the Securities and Exchange Commission (SEC), they shall have a viable working product/service, and have been in operations for a year to be qualified to apply for the SVF. A Co-Investment Partner is needed before an investment can be made.
The SVF cannot invest alone and cannot be the lead investor although it can find a match CIP for the selected startup. CIPs must go through their own accreditation process.
Investment Process
Deal sourcing and initial eligibility check.
NDA signing, submission of documents, and Investment Team evaluation.
Investment Committee deliberation and approval.
Term negotiation, board reporting, and release of funds.
Interested parties may apply as Co-Investment Partners (CIPs) — including venture capital firms, private equity firms, corporations, cooperatives, and other investors — subject to accreditation and the following conditions:
For non-VC/PE, similar reports/write-ups may be submitted in lieu of the listed documents.
CIP Accreditation Process
CIP and FoF investment applicants submit relevant documents needed for the evaluation.
Investment team screens the applicants based on the selection criteria.
Enhanced due diligence is conducted on applicants that satisfied the required evaluation score. Successful applicants will be endorsed to IC.
The Management Committee and NDC Board of Directors subsequently deliberates and approves the accreditation of the applicants.
