Vance Ching of Launchgarage
Vance Ching
Vance
Ching of Launchgarage
The Safe Space for Tech
Startups
By
Xavier Selman
The
startup culture heralded by the techies of Silicon Valley has been growing exponentially
over the last several years, to the point where now just hearing the word
“startup” evokes images of tech, creativity, and lots of money. But defining “startup”
exactly is somewhat of a tough endeavor. Adora Cheung of U.S. startup, Homejoy,
puts it best: “Start up is a state of mind.
It’s when people join your company and are still making the explicit decision
to forgo stability in exchange for the promise of tremendous growth and the
excitement of making immediate impact.”
Meet
Philippine-based Launchgarage. Launchgarage offers Philippine startups the
space, resources, and contacts they’ll need to best outfit them for the crowded
world of the startup industry. With the tagline, “An Innovation Hub In Manila”,
Launchgarage provides Philippine startups with everything a startup would
naturally need to break out, as well as connecting those interested in startups
with one another. We spoke with Launchgarage’s Community Hacker, Vance Ching,
for the low-down on everything and Launchgarage aims to achieve.
What
is Launchgarage?
In Silicon Valley over three hundred
startups work together in a giant office space where ideas are fostered,
business relations are made, and entire companies take off, with success
stories including
PayPal, Dropbox, SoundHound. All of this from what is known as Plug and
Play—and this is what Launchgarage offers, for the Philippine market. Jojo
Flores, COO of Launchgarage, also co-founded Plug and Play, so the experience
and aptitude is obviously there: all we need now is the market. Another big
name behind Launchgarage is Jay Fajardo, CEO and founder of Launchgarage, who
has been in the Philippine and Southeast Asian tech scene since it first began.
“Right now in the Philippines there isn’t
any hub for tech startups to get into,” Vance says. Launchgarage intends to
change that: by offering their services to various tech startups, they become
not only the middleman between startups and opportunity but the lodestone of
the Philippine tech startup scene, which is actively
growing year after year. “Our services are for the tech startup
industry, definitely.”
Startups,
Businesses, and Entrepreneurship in the Philippines
The idea of startups in the Philippines is still
relatively young. “Students think that working in a startup will give them the
experience and flexibility they’ll need for growth,” Vance says, but that doesn’t
mean most students are convinced. The allure of working for corporations is
still predominant in our culture, as the weaknesses of our economy have led to
a hesitant middle class that struggles to maintain itself. But with one of the
youngest working forces in Asia, the potential in the Philippines is off the
charts, and Vance hopes that Launchgarage can be on top to capitalize on it.
“There is much human capital here to be
tapped into.” Unfortunately, it’s the leadership that we lack, because one of
the largest problems for Philippine startups is finding co-founders. What’s the
issue? “Equity,” Vance claims. “A lot of people here don’t value equity yet,
and it’s more of income first.” Though it can be difficult to put much blame on
a risk-aversive people who are only recently climbing the global economic
charts, Vance hopes that the younger generation can help kickstart the
Philippine startup industry to a globally competitive position, and services
like Launchgarage are here to help.
But how do we inspire entrepreneurship?
“Passion,” Vance says, claiming that the number one difference between
entrepreneurs and non-entrepreneurs is the end-goal: both want to make money, but
entrepreneurs take it a step further. “Entrepreneurs want to create because of
their passions, something that supplies a long-term benefit to the people.”
Funding,
Innovation, and Problems in Manila
“Most startups here try to go for
international funding rather than looking for local funding.” Finding local
investors is nearly impossible in the Philippines, which is why most startups
look abroad, in Singapore, the US, and countries in Europe. And banks here
don’t help either: “Banks don’t have the programs, support, or knowledge of
providing money to startups, considering that startups are high-risk.” The
problem rests in the lack of proven Philippine startup success stories. Once
Philippine startups begin proving that our market exists, banks and local
investors will begin to open their wallets. “It’s really a matter of time.” And
this is starting to come to fruition: banks are starting to take interest in
the rise of startups, but it’s still not one of their main interests.
So how can we diversify the innovativeness
of our startups? “We want startups coming from Mindanao and Visayas.”
Agriculture is one area severely in need of innovation. It’s about targeting
the needs of the people, and if startups can figure out something that can help
our agriculture, not only would they hit with the Philippine market but markets
in other developing countries as well, such as India and Cambodia. “Startups
are a bit Manila-centric, making it similar to startup ideas coming from
abroad. If you’re coming from the provinces, the problems are very different,
and it’s still about providing the necessary means of living.”
But the problems of creating a business in
Manila remain the same: our traffic and our government. With hours wasted per
day stuck in traffic and weeks if not months worth of government paperwork to
be filed every time a business needs legal documentation, there is much that
the current administration can still work on before we can consider our country
a startup-friendly place. The density of Manila is a problem that is felt in
more places than one: this density creates a lack of exposure of ideas around
Manila, thus forcing a need for people to gravitate towards the Metro and
nowhere else.
Launchgarage’s
Goal
“We want to provide more opportunities, growing
the current established ecosystem that supports tech startups.” It’s a bold and
noble ambition, and one that we believe is genuine. You may be wondering how
Launchgarage makes money: aside from their affordable rental office space, they
take a small percentage from their partnered startups, in exchange for their
list of international contacts, potential investors, and interested third
parties. In just four months of operations, already over twenty startups
established in the Launchgarage community, with more and more investors—local
and international—every month flying in and listening to the pitches of
Launchgarage’s startups.
It’s a long road, definitely, before we see
the Philippine tech startup scene anywhere near the level of that in the US or
even Singapore, but the path to success is molded by those with the passion and
ideals of Launchgarage. Here’s to a bright future.
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