What kind of businesses would you like to see more of in the Philippines?

FV: More locally built and funded businesses. We want to see a business that is designed as a Filipino solution to a Filipino problem. There are many advantages to starting up in the Philippines. We have one of the youngest populations in the region, which has as many smartphones as in Indonesia; we are one of the most connected populations in the world, with 75 percent of our population using the internet versus 63 percent of the rest of the world’s population. 

How can you tell if an investment will be worthwhile?

FV: Early-stage investing is all about having faith in our entrepreneurs. As a team, Foxmont works very closely with the founders before we decide to invest. We are there with them every step of the way. From understanding their projections to looking at their P&Ls with them, Foxmont is there. We even go so far as to size the market to ensure that the founder’s total addressable market (TAM) is large enough for the effort to reap significant rewards.  

It is through this process that our team gets to learn a lot about the founder and the business they intend to build. We like founders who either have a background in their chosen industry or vertical or show extreme resilience and flexibility in addressing a challenging market.  

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What did your biggest investment failure teach you? Are there common mistakes founders can avoid?

FV: Every early-stage business and founder should be flexible enough to adapt to ever-changing market conditions, especially in emerging markets like the Philippines. Some investments were simply not able to adapt quickly. But we do see a new generation of Filipino entrepreneurs that are much more flexible and willing to listen to their key stakeholders. We are excited to be part of a future built by these up-and-coming changemakers.

Are you worried about the current economic climate? How is that influencing your investment choices?

FV: It is interesting to note that the amount of regional funding the Philippines has received year-on-year is increasing steadily. If you compare the percentage growth of total investments put into startups in the region in 2020, the Philippines was 2 percent of the total. In 2021, it was 5 percent, and in 2022, that number jumped to 9 percent of the total investment amount. In other words, the Philippines is increasingly becoming a more valuable place to invest.  

This tracks with the fact that the Philippines is now the fastest-growing e-commerce industry in the world. Currently, it has one of the fastest GDP growth rates per quarter since the pandemic. This is an indicator of a very healthy economic climate, relative to the rest of the region. As a result, we are very focused on our investment mandate: to invest in Filipino solutions to Filipino problems. As our economy grows, so must our locally founded businesses, and Foxmont is well-positioned to be there for our entrepreneurs.

What is the most important quality a venture capitalist needs to possess?

FV: Optimism. Venture capitalists must have faith in the entrepreneurs they work with. To be a VC, one must always be able to look at the bright future ahead for the companies funded and the ecosystem as a whole.  

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