Press Release
November 14, 2010

P1 B Capital Fund for Small and Medium
Scale IT Start Up Companies - Legarda

Senator Loren Legarda proposes the creation of an IT venture capital fund for small to medium-scale IT start-up companies in order to encourage more Filipinos to venture into the very dynamic industry of information technology.

"There is a need to widen the participation of the poor in the IT sector, particularly through entrepreneurial activities. The proposed fund, which amounts to P1 billion, shall be administered by the Department of Science and Technology."

Legarda filed Senate Bill No. 1407 - AN ACT TO ACCELERATE THE DEVELOPMENT OF INFORMATION TECHNOLOGY START-UP COMPANIES BY PROVIDING AN IT VENTURE CAPITAL FUND - to assist entrepreneurs and likewise provide incentives for the proliferation of IT-related businesses through-out the country, thereby increasing connectivity, particularly in underserved areas.

"Such measure will allow the IT industry to penetrate even the grass roots level, thereby making IT services accessible to the marginalized poor. "

"In the year 2009, the Philippines ranked 47th out of 66 countries in the Information Technology (IT) Industry Competitiveness Index in a study conducted by the Economist Intelligence Unit. While the same study notes that the Philippines has a generally favorable business environment, there were weaknesses and inefficiencies in the IT sector that need to be addressed in order to improve its standing."

"Recognizing that the IT industry is a promising industry in the country, efforts can be further exerted to boost the country's competitiveness in the global sector. Such efforts include the expansion and rehabilitation of information and communications technology infrastructure, promotion of research and development, and most importantly, development of human resources."

"The enactment of this significant piece of legislation is in line with the government's objective to fast-track our country's economic development and its competitiveness in the global arena," Legarda concluded.

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