13) Why will PhiLabs own 51%?
We provide capital, support and value at the most crucial stage of a company’s development. In the first and second round of funding, we provide 100% of the investment capital. Additionally, the second round of funding is non-dilutive to the founders, even if we invest up to an additional Php 1.5 million. We believe our guidance and insight add a lot of value to the venture. In many cases, we believe this will be critical to the success of the venture. This includes building the right business practices, corporate culture and fast, able decision-making. We can only ensure this happens with this level of ownership.
It’s like good as goodbye my start-up company. But I guess ‘beggars’ can’t be picky.
On the other thought, we cannot really blame the investors. I guess they do not have that trust yet on the local start-ups. But nevertheless, it’s nice to have them around to hopefully boost the local tech start-up scene.