Startups must strengthen governance, Kickstart says
PHILIPPINE STARTUPS need to adopt strong governance practices to build trust, attract funding, and withstand market and geopolitical headwinds, corporate venture capital (VC) firm Kickstart Ventures, Inc. said, noting that accountability and transparency are as vital in early-stage firms as in mature ones.
“Good governance is a key indicator of stability, especially in a climate where investors are more cautious,” Jecky Pelaez, partner for legal and compliance at Kickstart Ventures, said in a statement.
“Startups that embrace good governance are better positioned to build trust, attract funding, and scale sustainably.”
Kickstart cited the Philippines’ full-year 2024 gross domestic product of 5.6%, the second fastest in the ASEAN (Association of Southeast Asian Nations) region.
“These numbers signal growth opportunities that, if further supported by sound governance, can enhance local and regional investor confidence,” Kickstart said.
“Thus, Kickstart renews its calls for stronger good governance practices to startups and VCs alike; they must make it a shared responsibility and strategic imperative to maintain trust and secure long-term growth,” it said.
However, the VC firm noted that ongoing geopolitical instabilities are aggravating funding gaps in Southeast Asia’s startup ecosystem.
Likewise, several startups in the region face cases of mismanagement and financial misconduct, making investors “increasingly cautious,” it added.
Practicing good governance would help startups build a strong foundation to thrive amid challenging market conditions, Mr. Pelaez said.
“Good governance isn’t just about compliance; it’s about being proactive participants, building trust, staying transparent, and growing the right way,” he added.
Kickstart conducts due diligence checklists on its portfolio of startups before investing to ensure that they are well-equipped and committed to sustaining growth, it said.
Likewise, the VC firm’s post-investment support ensures that startups maintain their growth by providing strategic oversight.
“Coupled with the protocols and checklists are the efforts to foster and nurture trust between VCs and the people they work with. Altogether, this balanced approach helps ensure operational efficiency and continued profitability,” it said.
Kickstart Ventures is a wholly owned subsidiary of Globe Telecom, Inc. — Beatriz Marie D. Cruz
