🧠 Food for thought

Implications, context, and why it matters.

Kaya’s dual-fund plan seeks to fill the Philippines’ early-stage gap, though deployment terms remain hazy

• As of November 2023, the Philippines logged 40 startup deals and a 40% drop in capital from 2022 levels; Kaya Founders cofounder Paulo Campos called out long underinvestment relative to the country’s Gross Domestic Product (GDP) and population 1.
• Two vehicles, Zero to One Fund for pre-seed and One to Ten Fund for seed to Series A, aim to fill this gap with checks of $100,000 to $500,000 1.
• The fund’s reserve ratio, the share of capital held for follow-ons, and the split of the $25 million remain undisclosed. That leaves unclear whether Kaya can lead or will mostly follow.
• Plans call for 10 to 20 more startups over three years, and the firm already had 40 plus portfolio companies in 2024 1.

The National Development Company (NDC) partnership opens co-investment options for Philippine ecosystem players

• National Development Company (NDC) plans to double startup investments and speed deployment by letting private groups run due diligence, which can unlock matching capital 2.
• VCs, accelerators, and founders can use this co-investment setup 3. The Startup Venture Fund (SVF) lists rules such as Philippines-based status and Securities and Exchange Commission (SEC) registration with at least one year of operations, while it cannot invest alone or lead; check sizes and timelines are not listed 3.
• The Innovative Startup Act (RA 11337) gives incentives to startups 42. Subsidies cover business permits and startup visas, which can make government-backed investment more attractive 42.
• Early-stage investors in areas aligned with Kaya’s focus, financial inclusion, clean energy and tech-enabled services, will watch how this Memorandum of Understanding (MOU) turns into clear deployment terms.