500 Startups plots microfund for the Philippines

500 Startups’ Khailee Ng at the Geeks on a Beach event today in Panglao, Bohol, the Philippines. Photo credit: Tech in Asia.

Silicon Valley’s 500 Startups looks set to deepen its presence in Southeast Asia with a new microfund for the Philippines.

Nothing’s definite yet, however, says managing partner Khailee Ng during the 2016 Geeks on a Beach conference held on the island of Panglao.

“This is not something I’m committing to or making a promise,” he tells the audience.

The country’s startup scene is still very young and remains largely overlooked by investors.

Khailee says his team has been in talks with folks in Manila to identify candidates they can bring on board to launch the microfund.

It’ll be in the same style as 500 Startups’ funds for Thailand and Vietnam, where the VC brought in local champions as partners. 500 Tuktuks, named after Thailand’s iconic three-wheelers, is managed by two prominent startup figures in the country – Ruangroj “Krating” Poonpol, a former Googler who runs Disrupt, the number one startup incubator program there, and Natavudh “Moo” Pungcharoenpong, CEO of ebook store Ookbee. In Vietnam, its microfund is led by Binh Tran, a four-time founder, and Eddie Thai, who had long worked for Fortune 500 corporations. Both programs were initially worth US$10 million apiece.

Khailee says they want to look at the Philippines thoroughly – something they should have done before.

“We have to do more. I feel like I have not traveled to the Philippines enough, our team has not spent enough time here. In the past couple of months, we’ve been very busy putting up other things in other countries. Recently, we’ve gone to Myanmar to see what’s going on. I do want to do more in the Philippines.”

A Jeepney, a transportation staple in the Philippines. Photo credit: Marvin Abrinica.

The Philippines’ startup scene is still very young and it has been largely overlooked by investors, who go to neighboring countries like Singapore and Indonesia where there’s a wealthier or a larger population, a free flow of capital, or friendly and attractive policies. But the Philippines holds potential, Khailee says. Of its population of 105 million, 38 million are connected to the internet and nearly 40 percent own smartphones. There’s a rising middle class and the market is young and proficient in English.

See: What you need to know about the Philippine startup scene (Infographic)

“We love the Philippines,” Khailee exclaims, noting that 500 Startups has done eight deals in the country so far.