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Photo: Ren Arante / Unsplash

The Grant Application Uploads Fine. The Panel That Reads It Sits in One Place.

The Innovative Startup Act put registration within reach of regional offices. It kept the money's evaluation and release centralized, and that gap is where founders outside Metro Manila lose.

Ana Santos profile image
by Ana Santos

Picture a Davao agritech founder building sensors for small farmers, a composite drawn to show a common bind rather than a reported case. The Innovative Startup Act, signed in April 2019, set up grants-in-aid, fee waivers, and a Startup Grant Fund meant to carry founders like her past the first dry year. The law leans on host agencies' regional and provincial offices to bring registration and support closer to founders, but the money does not follow the same route.

Read how the program actually runs and the split shows up fast. Getting registered and accessing local support is meant to happen through the DTI, DICT, and DOST networks that reach the regions. That covers signing you up. It does not cover deciding whether your proposal gets funded.

The upload is easy. The evaluation runs through one pipeline.

The DOST Startup Grant Fund, run by PCIEERD, takes proposals online through the DOST Project Management Information System, so nobody buys a plane ticket to file. The catch is what happens after upload. Reviews are conducted centrally by DOST-PCIEERD, and from the structure it follows that a regional desk near the founder does not carry the call on releasing the money.

So a founder outside the capital submits into the same national pipeline as everyone else, then waits on people and committees she cannot walk in to meet, follow up with in a hallway, or read the room on. Proximity to the evaluators still buys clarity and speed, even when the form itself is a web portal.

The money exists. The access is uneven.

The funds are real and sizeable. In July 2024 the DICT opened Startup Grant Fund Cohort 2 with grants of P500,000 to P1 million, and DOST's 2025 program offered up to P5 million per startup. The DTI also co-manages a Startup Venture Fund with the National Development Company to match private investor money.

Officials tied to the program have pointed to limited funding, overlapping mandates, and thin staffing rather than any single design flaw. The effect on a Davao or Iloilo founder is the same either way: the registration counter is close, but the decision on cash sits in a national queue, and the farther you are from it, the harder it is to chase.

Some regions have started patching the gap themselves. Iloilo province passed an ordinance institutionalizing startup development, with up to P500,000 in financial assistance per qualified startup plus a three-year business tax exemption. That a province had to write its own line tells you how far the national fund reaches on its own.

Left with a national queue and a small local pot, some founders turn to Singapore-based or regional investors who never ask them to route anything through Manila, and, as analysis rather than a documented count, that pull is one reason promising local startups get courted offshore early. A founder should not need a national committee's calendar to release money her own government legislated. Until evaluation and disbursement carry the same regional reach the law already gives registration, the Startup Grant Fund stays a benefit you can apply for but wait a long way to receive.

Ana Santos profile image
by Ana Santos

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