What it takes to win the Ideaspace startup competition

Do you have a business idea you want to turn into reality? Try pitching it to Philippine accelerator Ideaspace Foundation.

Ideaspace is holding the biggest startup competition in the Philippines where it will choose 10 startups out of a pool of hundreds to undergo a six-week incubation program.

At stake is at least PHP 1 million (US$22,340) worth of monetary and in-kind benefits. The winners will get seed investment of PHP 500,000 (US$11,170), office space, a housing option, mentorship on financial modeling and costing, marketing, design, and legal advice. The startups’ founders will be made to undergo an entrepreneurship program at the Philippines’ Asian Institute of Management. Other support will also be given in terms of incorporation, intellectual property protection, and possible follow-on funding.

“In emerging markets where there’s still much room for growth in terms of technology startup investing, competitions such as this one can help democratize access to funding,” Ideaspace president Earl Martin Valencia tells Tech in Asia. “At the same time, we’re spurring interest in all sides of the startup ecosystem.”

“Previously, funding is limited to those already in the know who are mostly based in key cities where startup activities are already popular. Combined with our grassroots advocacy, we’re helping foster the country’s innovation funnel and making it accessible to more people,” he adds.

In the past two years, Ideaspace has invested in 28 companies focusing on innovations that address emerging market needs. Some of these companies have received global attention like SALt, which aims to light up poor homes in off-grid areas through a lamp powered by salt and water.

See: This Philippine startup wants to light up poor homes with lamp powered by salt and water

How to get in

Ideaspace has held two rounds of this latest competition already. This third round is expected to be more intense, given that the foundation’s selection rate is less than two percent.

For startups, the question now becomes: what does it take to win? Here are four key things that Ideaspace is looking for in a startup it will fund:

1. Clear need

The startup should be solving a clear market problem. “We like to get startups that understand the pain points. It is best when they have experienced the pain themselves,” says Ideaspace executive director Diane Eustaquio.

How large is the market? Is there demand for the product or service not just locally, but also globally? These are very important factors to consider.

2. A team that packs it all

Teams that have complementary skills and personalities stand out. For instance, teams that embody the three ‘H’s – the hustler, the hacker, and the hipster. “If they show that they have complementary personalities, like when we see that a team has a promoter, controller and supporter, it gets more exciting for us,” Eustaquio says.

3. Unique technology

Ideaspace is also interested in how innovative a startup’s technology is. Valencia cites SALt as one of the startups most people were excited about. “When they started, we were really curious about how they can generate light from salt and water.”

4. Synergies

Also vital are the synergies a startup can create across industries. This becomes more significant in the context of Ideaspace being the accelerator arm of the Manual V. Pangilinan (MVP) group of companies. “We look at the possibility that this startup can be supported by any of our donor companies like Meralco, PLDT, Smart, the hospitals in the Metro Pacific Hospital Group. By support, we mean we can supply mentors in that industry and provide early traction and piloting opportunities,” remarks Dustin Masancay, Ideaspace associate director for ventures.

Masancay explains that some of the startups they’ve funded already partnered with MVP companies. Tambio, which features an event raffle product, was piloted at several PLDT events. Queuing system Timefree is also being used at Smart stores and soon will be rolled out at a Maynilad payment center.

With all these taken into consideration, Eustaquio has this final bit of advice, “As they say, ‘if you can’t sell it, you don’t get the money.’ That’s why the application process is important. On top of the idea, we’re looking for teams who are willing to step into the technopreneurship route, to take that risk and to have the drive and focus to make things happen for their startups. The incubation and acceleration program is not forever, there’s that window of time where they can maximize all the opportunities that will be made available. It takes a certain level of commitment to their team and to the program.”

Applications to Ideaspace’s competition opened September 8 and will close by 11:59 pm on January 15, 2015. The applications will undergo several rounds of judging until the top 20 are determined by March. The list will be further trimmed down to 10 startups, which will go through the six-week incubation program. The program will culminate in a pitch to the Ideaspace board in June.

See: 10 new Philippine startups to watch out for

This post What it takes to win the Ideaspace startup competition appeared first on Tech in Asia.

What it takes to win the Ideaspace startup competition