Philippines’ PLDT launches VC that eyes Silicon Valley, global investments

Philippine telecommunications giant PLDT has created a venture capital firm that will invest in companies from Silicon Valley and the rest of the world.

PLDT Capital, which has started operations in Los Angeles County in California, expects to make US$50 million in investments this year alone. The investments could be in “mobile engagement platforms, content, mcommerce, and digital services.”

The firm’s managing director Winston Damarillo, who’s also PLDT’s chief strategy officer, told Tech in Asia: “The allotment is for Silicon Valley companies and other companies overseas. That means, if we find good companies in LA, for example, we’ll invest in them or form joint ventures with them.”

The joint ventures will be created through the PLDT group’s local business units, among them Smart Communications, ePLDT, Digital5, and Voyager.

Essentially, PLDT Capital will serve as a “gateway” in forming synergies between Philippine and Silicon Valley startups.

“The benefits are two-way: we will invest and allow access to the PLDT group’s customers and services and in exchange, we want them (investees) to bring their technology and talent here in the Philippines. We want our Filipino entrepreneurs to gain expertise and become world-class,” Winston explained.

PLDT is one of the two largest telecommunications companies in the Philippines. It serves more than 70 million mobile and internet customers in Southeast Asia.

Recently, it bought a 10 percent stake in German company builder Rocket Internet – its first and biggest investment in the internet space so far.

Winston said PLDT Capital would announce its first Silicon Valley investment “next week.”