TNB Aura Sees Philippines as Next ‘Hot’ Market for Venture Capital in Next 5 Years

Southeast Asia-focused venture capital firm TNB Aura is optimistic about the Philippines’ potential as the next regional destination for venture capitalists in the next five years, banking on its emerging startups ecosystem.

At the sidelines of TNB Aura’s VC Socials in Taguig City on Thursday, TNB Aura co-founder and managing partner Vicknesh Pillay told GMA News Online the company is “investing 10% to 20% of our entire fund towards the Philippines.”

“Very soon we expect the Philippines to be the next market… in the next five years, to be the most attractive market [for venture capitalists],” Pillay said.

Last year, TNB Aura announced it is planning to allocate about $30 million in Philippine startups in the next three years as the company expects the country to catch up with more developed markets.

TNB Aura, which describes itself as a “sector-agnostic” venture capital firm based in Singapore, said it is looking for founders who want to be part of a “new era of future-defining growth” in Southeast Asia.

Asked if the Philippines was late compared to its peers in Southeast Asia in terms of being a destination for venture capital and private equity funding, Pillay said, “It is not necessarily late, it’s just very important to make the timing correct.”

“Right now we see the Philippines as really exciting.”

“Frankly, it’s just the maturity of the market… The first movers were Singapore and Indonesia when we saw a lot of capital going to Singapore and Indonesia in the past 10 years. Therefore, those were the focus for many regional funds like us in the past year,” Pillay said.

“Right now, we see Vietnam is becoming the next hot destination for a lot of investors because it is the next market which is maturing and very soon the Philippines, just two to three years behind Vietnam, as the next market,” he said.

TNB Aura is seeing the Philippines’ young demographic as a driver for the country’s venture capital ecosystem, leaning on the rising entrepreneurial interests which in turn would create “founders” of next startups.

TNB Aura has also partnered with GMA Ventures Inc., the investment arm of GMA Network Inc., with the two parties directly investing in firms that they both believe in.

Particularly, TNB Aura and GVI have a partnership agreement with Hofer Development Company (HDC), a house-of-brands company that develops over-the-counter products under the health care category. — VDV, GMA Integrated News