AHG Lab, the largest independent venture builder in the Philippines, has secured a total of USD 4 million in Pre-Series A funding aimed at fueling the growth of the venture builder, its portfolio of ventures and programs, and the wider startup ecosystem.
The funding round was backed by a US family office and 2 Filipino family offices: the Rufino Family and David Leechiu. In addition, VC and investment funds from the US have also participated in the round including Seaborne Capital and Imagine If Partners. Lastly, a network of Filipino, American, and European angels that have invested in earlier rounds have also participated.
According to AHG Lab CEO Rene Cuartero, the funds raised will be used to bolster the venture builder’s operational, strategic, and funding support for 10+ startups. The funds will also be used to strengthen support for its ongoing incubator and accelerator program Founders Launchpad and prop up AHG Lab’s various service organizations.
To date, AHG Lab’s portfolio includes startups that have closed their angel and seed rounds such as Shoppable Business, a B2B wholesale supplier and distributor marketplace showing double-digit growth in revenue; GoGym, a tech-enabled affordable gym business now with 4 locations; DOON, a peer-to-peer car-sharing marketplace; and Founders Launchpad, which is now running its first cohort with 6 startups.
The startup ecosystem in the country is on the upswing post-pandemic. Foxmont Capital Partners and Boston Consulting Group (BCG) recently reported that in 2021 and 2022, local startups raised a record USD1 billion of funding in each of those years.
Yet raising funds is still a concern for many Filipino founders. The Asian Development Bank’s May 2023 report on the Philippines’ tech startup ecosystem revealed that access to capital remains the top concern for 62% of Filipino founder, while 54% identified regulatory requirements as a major obstacle. The report added that incubator and accelerator programs have proven valuable, with 72% benefiting from access to partners and customers and 64% gaining mentoring and technical expertise. However, subsidies, services and community support ranked lowest, at 12% and 18% respectively, among the benefits received from incubators.
It is these key operational challenges faced by startups that AHG Lab will continue to address. “Beyond investments, we are composed of a team of former founders and operators that understand the power of community and the pain points that startups face and solve day-to-day. This is what gives us a more unique and deeper empathy for founders, which motivates us toward our mission of building and supporting the ecosystem,” Cuartero concluded.