LOOKING FOR FUNDING TO GROW YOUR BUSINESS?

Name: LOOKING FOR FUNDING TO GROW YOUR BUSINESS?
Uploaded: 2026-08-31T07:49:54+00:00
Duration: 52 min 15 s
Channel: SunStar Philippines

00:07Music

00:09Music

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00:27It starts with a fresh shot of espresso, bold, rich, bold, just right.

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00:56Good afternoon and welcome to Beyond the Headlines. I'm DJ Moises and today's conversation is brought to us by Coffee

01:02First.

01:03For many Filipino entrepreneurs, the challenge is not a lack of ideas.

01:09It's knowing where to start, where to find support, and how to turn an idea into something sustainable.

01:16Let's look deeper and think better.

01:19Joining us this afternoon are DOST, Region 7, Regional Director, Dr. Tristan Abando,

01:26who will help us understand the funding and support available to technology and innovative businesses,

01:32and Timi Di Jesus, CEO of Bay Ruler, who will share the company's journey from an idea to where it

01:41is today.

01:41So hi, RD Tristan and Timi, and welcome to Beyond the Headlines.

01:46Hello.

01:48Hi.

01:50So we were talking earlier before we went live, and this conversation hopefully will enlighten those of our viewers who

02:01have an idea,

02:02but they are just looking for ways to move that idea into an entrepreneurial success.

02:10What are the options that they have through government agencies like DOST to make it happen?

02:16So let's start with you, Timi, on Bay Ruler.

02:19So before it became the success that it is today, it also had its beginning.

02:25So can you walk us through that journey?

02:27I know quickly, it took years to make it happen, but at least for the viewers to understand where it

02:33was and how it got to where it is today.

02:36Yes. So Bay Ruler was co-founded by, we were actually six, there were six of us, and three out

02:44of the six founders were actually,

02:48we were all in tech.

02:50We were all working in information technology and technology as an enabler.

02:55Three of our co-founders were actually working for a manpower agency.

02:58They were employed there, and they were the IT team there.

03:02However, that manpower agency pivoted and took a different direction in the business.

03:07So they were actually left without a job, essentially.

03:12Like they had to kill that department.

03:13And so the co-founders were talking, like, will we go seek other jobs?

03:20What will we do?

03:21Then they thought, actually, we're good at specific things.

03:25We have a lot of experience in terms of payroll, computation, because it was a manpower agency, right?

03:33So if you can imagine, this is thousands and thousands of employees that were paid in different ways.

03:39Some people were paid daily.

03:40Some people were paid hourly.

03:42Some people were paid by piece.

03:44So they realized, actually, we do have that expertise.

03:47Why don't we try and reach out to a small network of investors, get some funding, and try to launch

03:55it?

03:55So that's what happened.

03:57We were able to raise a little bit.

03:59We all came together.

04:01We were able to put a little bit of funding that gave us runway for about, I would say, a

04:08year.

04:09But for a year, and then by the sixth month, we were already serving a client.

04:16And so in startup language, we did get funding, but it only extended our runway for a year.

04:25And after that, we were bootstrapped.

04:26So as we were building that product there, slowly, we would get customers, and it grew.

04:37Interestingly enough, our first office was, initially, we were parked in the office of our client.

04:45Marag, you can use any tables for a bit, part of the deal, so that we can deploy it to

04:51your company.

04:54But eventually, you're like, okay, we need a proper office.

04:56So actually, Pay Ruler's first office was in UP Cebu in IT, which is an incubator that is funded by

05:07DOST.

05:08So we were there for years and years up until we were able to grow too big.

05:13Now, we had to give up the space for newer companies.

05:19So that's kind of how it started, incremental growth.

05:24And we started with cubicles, cubicles in UP Cebu in IT.

05:29So Timmy already mentioned about the incubator that DOST, is it used to support or is it still there?

05:39It's still supported.

05:39It's still supported, Kanang Startups.

05:42So can you also tell us about what other available options also that Startups, like Pay Ruler, if they have

05:51an idea today, for example,

05:53for them to be able to get enough support to get them through?

05:58Yeah.

05:59Actually, the Department of Science and Technology started with provision of assistance to the brick and mortar, micro, small, and

06:07medium enterprises.

06:08And we have the small enterprise technology upgrading program where we promote equipment acquisition for them for technology upgrading.

06:16However, we have realized that there are some limitations of some of the product ideas of our brick and mortar

06:22MSMEs

06:23because normally they are engaged into traditional products and maybe the scalability would be lower.

06:32And we are very happy because Central Visayas, especially Cebu, has an emerging number of startups with innovative product ideas.

06:42And that's the reason why we really collaborate with DTI, DICT, especially with the passage of the Innovative Startup Act,

06:52where we started with, for example, if a young innovator or a nascent startup has this product idea.

07:01So then we can have, we are now establishing innovation hubs where we are running ideation mentoring session and even

07:09design thinking sessions.

07:10And we're working also with DTI, DICT for some of the mentoring that we are going to provide for the

07:18startups.

07:18And we, even our, for example, the DOST, Philippine Council on Industry and Energy Research and Development,

07:26they are supporting a network of TBIs.

07:29Actually, the TBIs or the Technology Business Incubators has been here for several years already.

07:34UP Cebu in Haiti is one of the second-generation TBIs in the Philippines.

07:40And we have expanded the network of TBIs we have.

07:43We have the CITU, Wildcat Innovation Lab.

07:46We have also the Balik Sa Bohol TBI of Bohol Island State University

07:52and even the University of San Carlos Bridges TBI.

07:56So we support these TBIs because from ideation, the startups can proceed to incubation where they will be receiving also

08:05technopreneurship mentorship.

08:07And now, after technopreneurship, we are also partnering with some accelerators so that they can be investment ready.

08:14And if their investors are ready, then they can also scale up.

08:18And in terms of scale up, that's the time that we can provide them with seed fund for technology acquisition.

08:24And that is the Small Enterprise Technology Upgrading Program.

08:28So we recommend PayRuler because they have really availed of these programs from ideation to incubation.

08:37And now with the scale up with the Small Enterprise Technology Upgrading Program.

08:41Okay, let's trace through the process and then both of you can jump into the conversation.

08:48So for example, I have an idea and then I want to move this forward.

08:53And of course, I would be looking for investors, like private investors.

08:57But how can I approach DOST and then take it from there?

09:03Yes, it would be best if you can, for example, if you're a startup.

09:07Yeah, like I just want a hackathon.

09:10Yeah, I just want a hackathon.

09:12Okay, yeah.

09:13So we can approach DOST because we are running also ideation sessions, design thinking sessions.

09:21Because, you know, for your idea to be cultivated into, you know, innovative or scalable product,

09:26there's a need for us to really check if are you addressing a certain problem?

09:32Are you providing a solution?

09:33So that's where our design thinking process should proceed because, you know,

09:39it would be difficult for you to scale up later on if there would be no target market.

09:44There would be a user, there would be no pain point that you're addressing in the market.

09:48So I think that's one of the, I think one of the, how do we call that?

09:52The initial process.

09:54Yes, the initial process.

09:55Attending those sessions and, you know, networking also and getting,

09:59being inspired by other startups or other mentors.

10:04And we had a conversation before because the first time I went to the OST,

10:09I noticed, you know, soap.

10:12No, yeah, no, no, no.

10:13But the reason why I smiled, it's because of my lack of understanding.

10:18So maybe this is a good time, although we talk about this in the past,

10:23maybe this is a good time also in case our viewers would also want to know what type of,

10:28there's DTI man, di ba?

10:31Yeah.

10:31So what type of business can they bring to the OST or what type of product should they bring to

10:38DTI instead?

10:39Yeah.

10:40So for DOST, because we are more focused on promoting technology adoption.

10:48So when we promote technology, usually the focus also for technology adoption is more into the manufacturing sector,

10:58the processing sector.

10:59So there should be conversion of raw materials into products.

11:02So if it would be service, I think we have limited support to the service sector, for example,

11:08although if there would be digital transformation that can be covered by the OST.

11:12But if you're into, for example, trading or into, you know, service sector,

11:19then you can also avail of the services of DTI and DICT.

11:24But, you know, the more important thing for us is to really, we need to, of course, assess always your

11:33product idea

11:34so that we can guide you on what pathway are you going to choose for your startup.

11:41I think if I may pile on that, like, it's so wonderful that DOST has, like, really expanded the programs

11:49that are available.

11:50I think it was very important to us at Payruler that we were at UP Cebu and IT in a

11:57TBI

11:58because that was our way to connect with DOST.

12:02Because, honestly, at the time, you know, funding was, startups were new.

12:08It was, it was like, this was 2015.

12:11So it was a buzz, but it's kind of like, okay, will the government support, will we, where do we

12:17get funding?

12:18So it was, we decided that, okay, UP, sorry, DOST is actually investing in these TBIs.

12:25This is, this is a good place to be because it will open up your possibilities, no?

12:31I think the struggle with a startup, especially when you're starting is,

12:33how do you, how do you, how do you, how do you say that, how do you make your customers

12:40feel you're not fly-by-night?

12:43That's my next question.

12:44Thank you, yeah.

12:45I'm going to elaborate now.

12:46Yes.

12:46How do you, like, we're legit.

12:49Like, they'd be like, who are you?

12:51And why will we sign?

12:52And they're entrusting a part of their process to you.

12:54Exactly.

12:55Since we are an HR payroll, HRMS, it's Payrulers and HRMS.

12:59They're like, they're like, okay, now we'll give you a certain contract.

13:04And we're, you know, our contracts were not also like, not cheap either at the time.

13:10Being a part of, and saying that, oh, we are a startup incubator in a DOST-funded technology business incubator.

13:19They'd be like, oh, okay.

13:20So it was like DOST was lending their credibility onto startups.

13:26And that was very important at that time.

13:28And, you know, these programs evolved later on.

13:32We weren't really able to avail so much of them.

13:34But even that big trust that's given to startups, that was such a big thing for us.

13:40Because they're like, oh, okay.

13:41They're in a DOST-TBI.

13:44These people must be legit.

13:46That was very important for Payruler.

13:47I have to admit, I did not look at it that way.

13:51I was just looking at an incubator as an incubator.

13:55But I did not realize that there's so much credibility and stamp of approval, if we may, that's actually put

14:03on a particular startup once they're associated with the DOST.

14:08So, okay.

14:09I'll dwell more on that.

14:10So, do you accept any type of business?

14:14Or they also go through the same filter that you use when you start supporting startups?

14:23Yeah.

14:24There should be filtering.

14:24Still the same criteria.

14:25The same criteria.

14:26Like, that's the importance of the ideation.

14:30And, you know, the...

14:31And they go through the same process.

14:33And even validation, because after that, we have also, like, funding to validate the...

14:39Of course, you have a good product idea, but you need also to validate if your prototype, for example, would

14:45really be working and provide the promise that it has to provide to the customer.

14:50So, that's the reason why we have also our undefunding or validation, okay, to check if that would really work.

14:56The technical visibility.

14:58And then, after that, of course, it will be supported as well with the technopreneurship mentorship.

15:03Because, you know, some of these innovators, like, especially if you are a lone founder, maybe you are equipped with

15:10the technical skills, okay, technical ideas.

15:15But you have to really transform into, you know, entrepreneur to be entrepreneur.

15:18So, that's the reason why incubation is very important.

15:22And I think that's the credibility that they can get if they are into incubators, if they are enrolled into

15:27incubators.

15:28Because you will receive all these forms of assistance.

15:31And, you know, the investors would have the confidence or the partners would have the confidence because you go through

15:36these mentorship programs.

15:38So, for example, if the winners of the hackathon, when you go invested to it, even if they already won,

15:46they still have to go through an ideation process?

15:49Or can they jump the queue already?

15:53It depends on what kind of activities that you were able to go through.

15:57Assuming they're technology again.

15:58Yes, because, like, for example, the Solutions Fest was really a good one because it was really designed in a

16:08form of, you know, design thinking, ideation.

16:12You connect with problem generators and you match your solutions.

16:16So, I think it was really a good exercise, that particular hackathon.

16:21And, like, on our part of the DOSD, I think there's no need to further validate because we know that

16:27it went through the process and DOSD has been part of the process.

16:30So, yeah, so I think it would just require, like, for example, PayRuler, like, when they applied for setup or

16:36the small enterprise technology upgrading program, it is not difficult to evaluate because they were able to receive the guidance

16:46or they have been exposed to mentorship under the UPCB in IT, TBIs, and even the startup ecosystem.

16:55So, for PayRuler, actually, we were, yeah, we were incubator locator in the past at UP, Cebu, and IT.

17:02And in Manila, we were actually one of the first members of the cohort of the Asian Institute of Management,

17:11Lado Banataw Incubator.

17:13So, that is also a DOSD.

17:15A plus, right?

17:16Yeah, that's a DOSD-funded TBIs also.

17:18So, that connection also then expanded our reach.

17:23And through the, parang, because we were a part of the two TBIs, that opened up our possibility for the

17:31R&D funding that RD Tristan was talking about.

17:34So, we were able to secure that back in 2020, around 2018, a funding for R&D.

17:40Because, you know, as a startup, like, your focus, especially as a bootstrap startup that's running on revenue, your focus

17:47is keeping the lights on, paying people.

17:49Well, you don't really have the, parang, you don't have the luxury to pay for R&D.

17:57And R&D costs, that's labor, that's server costs, that's a lot of things.

18:03And because of, you know, being a member of these two TBIs, then we were able to have that validation

18:09and access.

18:10Actually, it was a criteria that you had to be associated with one of the TBIs.

18:16Now, we could access, like, a bigger source of funding for R&D.

18:20So, with that, we were able to, like, really work on, you know, the next generation of analytics, data science,

18:27things like that.

18:28So, that was so helpful for us as a startup.

18:31Where are you going to get money for that?

18:34So, correct me if I'm wrong, but I'm going back to Solutions Fest.

18:37Because I know that there's a lot of hackathons, man.

18:40And there are also, at least from what I've seen, there are also a lot of promising solutions, but they

18:47just probably need some guidance on where to go.

18:50So, if I am to synthesize what you just said, to a certain extent, funding is still necessary before the

18:57OST can help them.

18:59Because they need to do some feasibility work, they need to do some prototyping, et cetera, before they qualify to

19:05the OST, you know?

19:06So, when you're the idea, they will really have to start from zero, you know?

19:12To some extent, in the beginning, they have to secure their own funding so that they would be able to

19:17meet certain criteria that you're looking for, and then they qualify for this.

19:21Okay, now, we have proof of concept.

19:22I think that's a term, you know?

19:23There has to be a proof of concept to begin with, you know?

19:26So, what are the support, man said, that the OST is giving?

19:31Because I think there's one for startups, but there's also one for existing MSMEs already.

19:40So, let's start.

19:42I think it's already covered the startup.

19:44For MSMEs, how do they qualify for this?

19:48Yeah, for the MSMEs, the Small Enterprise Technology Upgrading Program or Setup is really designed for them.

19:55Although, at the moment, right now, we are, you know, we are opening also the, how do we call it,

20:01the scope of setup for the startups.

20:04Because right now, we have started, like, accepting enterprises that are operating at least one year.

20:11Before, the requirement was for them to have an operations of at least three years, because we need also to

20:18check their, because, you know, the, we have, we have actually three, actually four major programs with funding right now

20:26in the OST.

20:27One is for, set up for the Small Enterprise Technology Upgrading Program.

20:31One is the CES, the Community Empowerment Through Science and Technology.

20:36Not CES, no, but CES.

20:38And it's for the community, so that is a grant, actually, for even those startup-based or community-based startups,

20:45we can support that.

20:46And then, the third one is the Smart and Sustainable Communities Program, where we provide a program of support to

20:53our LGUs so that they can transform themselves into smart and sustainable communities.

20:57And the fourth one is the more flexible one, because this is, we call it the Local Grants and Aid

21:03Program.

21:04This is also a grant where we support those partners that are developing also the innovation ecosystem.

21:11They have, they have programs, like, for example, we have been partnering with Cebu Chamber in the fast, in the

21:17food program.

21:19We have the, our food program in the past.

21:22So, we can, actually, we can support, we can provide grant for our startups through, for example, Local GIA and

21:31even setup.

21:31But for the micro, small, and medium enterprises, they need to have, like, financial proof because the setup program is

21:40actually a rent-to-own program.

21:41It's not a grant, a total grant, but it's a zero-interest seed fund provision.

21:48So, that's why there's a need for them to return the fund for three years, at least three years, or

21:54they can have five years.

21:56But we will give them grace period of one year for them to acquire, procure the equipment, benefit from the

22:02equipment that they have availed.

22:05And that's why we need to assess their financial capacity.

22:08And, of course, we were going to assess the marketability as well of their products because, you know, we don't

22:14want to, the program is really designed to provide support.

22:18And we hope that they will not be burdened by, like, sort of the financing, the payback that they are

22:25going to have.

22:25Like, we're very flexible.

22:26That's why we need to assess that they have a market so that we will not encounter a problem in

22:31the future.

22:31And even, for example, if they encounter a problem in the future, since we are not also, like, a financing

22:38institution, our goal is to really promote the adoption of technology because, you know, that's the goal of the UST.

22:46However, we cannot just, you know, encourage the MSMEs to adopt technology while we are not also providing the seed

22:53fund because it's really a large investment on their part.

22:56Instead of, you know, investing on the equipment, they would rather refocus it to, for example, maybe working capital, human

23:04resources funding.

23:06So it's, I think I like the term used by Timmy in one of our events, like, it's de-risking

23:11the journey of the MSMEs and the startups.

23:15So we hope that with that kind of support, we can ensure that MSMEs are now upgrading their operations through

23:22technologies, through the, at least the seed fund that we can.

23:27For, in the context lang of possibilities, and I hope you would indulge us, what's the biggest grant, man, in

23:37terms of amount now?

23:38That the UST was able to grant to a highly promising MSME.

23:45We were able to grant MSME here in Cebu at as much as $9 million.

23:51Yeah, but actually, there's no cap as long as we do have the budget.

23:56And then we were able to, you know, establish.

23:59We were able to pre-identify that particular firm or project in the previous year so that it can be

24:06allocated in the next year.

24:08So the cap for the amount would be based on, number one, what is your funding requirement for your technology,

24:19what specific technology.

24:20Then second, for example, if that would be $5 million and below, it would be for only by approval by

24:29the regional office.

24:31So I think that would be a shorter, you know, approval time or window.

24:35And then if that would be $5 million and up, then we are going to submit a big ticket proposal

24:40to the central office of the UST.

24:43So we can go as much as, you know, $10 million and above if that would really be required.

24:50And we do have a location as well.

24:53For example, if that would be like a common service facility or an innovation center that would be required by

24:59a certain group of companies or MSMEs or industry,

25:03then we have what we call the industry level intervention where that can be a grant to our partner for

25:09them to establish a center.

25:12Like, for example, there was a clamor before by the Cebu Furniture Industry to localize the testing.

25:18So we have now the Furniture Testing Center and that is funded by the OST.

25:24And then next year, we are going also to establish the metal testing facility because we have Cebu-based steel

25:31companies that are requiring or requesting us to localize also the testing because that would require more.

25:38So we can have like firm level interventions, but we have also industry level interventions.

25:43And specific to this $9 million grant, how long did it take for this MSME to process this and eventually

25:54receive the grant?

25:55And I know that part of the complexity is also due diligence.

26:00Yes.

26:00So we don't just approve it and then the following day, no?

26:04But how long did it take them to secure this one?

26:08It depends because there are also like, we call it the stop clock.

26:13Because we need to stop the clock in our clock.

26:16Although we always follow the, how do we call it?

26:21The ease of doing business.

26:23If that would be a simple transaction, that should be three days.

26:26So we have the 3, 7, 20.

26:27And you know, the 7 is 7 days and then 20.

26:31So the proposal, for example, for the setup, it should be, the expectation should be 20 days.

26:37But we can extend it to another 20 days because of some, you know, stop clock.

26:43What we mean by stop clock is like on the external and on the side of the applicant.

26:49Ah, got it.

26:49For example, they are going to, they are required to submit documents.

26:54So we cannot count that because they're working on it.

26:59Okay, but so meaning most of our proposal, including all those, you know, how do we call that?

27:08Including those downtime.

27:10I think it would be around two months for the local approval.

27:14But it can be shortened if the client would also be responsive.

27:20The requirements are, but of course, for the national, it would really take by, it would take six to one,

27:28six months to one year.

27:30I think they have experienced that with R&D funding because we submitted it to central office.

27:34And there are, you know, exchanges of comments from the evaluators.

27:38And I think in the central office, it has at least three layers of evaluators.

27:44But here in the region, we ensure that there will only be one layer of evaluation.

27:49For PayRuler, we really had to, we were, I mean, it was nice to be able to visit the main

27:55compound of DOST in Bikutan.

27:57That was a good experience for us too.

27:59But PayRuler and a few other Cebu startups, when we were initially, when the grant was more centralized, we had

28:07to go there.

28:07And there were very many, like, you would have to present to a technical committee.

28:11You'd have to defend it.

28:13It's literally like a defense.

28:16But, I mean, the perspective is also, it's being responsible.

28:21Because there's a lot of money involved.

28:24Exactly.

28:24And it's taxpayers' money.

28:26So, you know, it's really just part of the process.

28:29Just go through the process, honestly.

28:32It is okay.

28:33It's nice to know that at regional, sorry, at local, it's 5 million now.

28:40Because in the past, it's 3 million.

28:423 million for us.

28:43And they were like, okay, don't, I mean, of course, we would be encouraged.

28:47The people from DOST, I mean, the people we would deal with, they're very helpful when you're making your program.

28:52They're like, maybe you can cap it at 3, but it was the cap before.

28:56So, it won't go beyond, you know, extend to the whole.

28:59Longer lead time.

29:00Exactly.

29:00So, there's a lot of coaching and support, Sad Bitao, from the program managers that would be assigned to these

29:06grants.

29:08But it's nice to know, 5 million.

29:09We really appreciate discussions like this because this is also an opportunity to, you know, hear your feedback and your

29:17recommendations on how to improve the program.

29:18Because every, of course, every year that we have review of our programs, actually, the setup program has been implemented

29:25since 2002.

29:27And there has been a lot of, you know, revisions in the policy and the procedures.

29:32And we hope to shorten it more.

29:34Actually, the anti-red tape authority or the ARTA has been requiring us to really identify what would be the

29:43improvement of each program.

29:45And we know, we hope that with the ease of doing business, acts, all the government agencies, including us, would

29:52really ensure that there would be improvement on the process.

29:55So, having said that, we hope that we could really shorten the process of setup.

30:00I think we go even to the lengths of, you know, assisting our applicants in the writing of the proposal.

30:08We will not just wait for their proposal to come, but we can help them, you know, draft their proposal.

30:14And even, like, for example, for the evaluators, we're giving them, like, 14 days.

30:19Like, if they could not provide feedback after 14 days, it is good as recommended.

30:25So, yeah.

30:26Yeah, they're very hands-on, honestly.

30:28Very, very hands-on.

30:30Like, through our process, through the setup loan.

30:32So, actually, we applied for it back in 2021.

30:37And that was a little bit…

30:40Like, our proposal looked different at the time.

30:42Because, honestly, AI wasn't really as prevalent as then.

30:49It wasn't.

30:50So, it looked very different.

30:52And I think it was a blessing in disguise, honestly, that we didn't get it then, but we got it

30:57now.

30:57Because I feel like just what the setup has enabled for us now is so much better than what it

31:05could have been back in 2021.

31:07But, yeah, it was a process, the writing of the proposal.

31:11Very hands-on, but…

31:14There's only one.

31:15There's only one.

31:16There's only one.

31:17There's only one.

31:17There's only one this year.

31:18Now, which brings me to my next question.

31:21Okay.

31:23In our past conversation with Eddie.

31:27Now that I'm…

31:29Because I shifted, no?

31:31I also shifted from being an employee to an employer, no?

31:34An entrepreneur.

31:36If I look back into my journey in the context of funding, now that I have also met several people

31:42in the different agencies, government agencies,

31:44I realize that I should have done it this way in the context of funding.

31:48In your case, in PayRuler, if you look back to your journey, is there something that you realize that in

31:57terms of funding, I could have done it this way?

32:02For PayRuler, I think, honestly, I feel it would have been accelerated more if all of the programs that are

32:12available to startups now are available.

32:15That would have been really good.

32:17But at the same time, it's like you do what you have to do.

32:20I think, deliberately for PayRuler, we didn't really focus so much on…

32:27You know how you hear in this news, like startups raising funding from VCs, venture capital, investors?

32:35We didn't really go that route.

32:37And I think it's fine to take that money, that funding, the capital.

32:44That's okay.

32:44But we chose a different route.

32:46And we really steadily fueled our growth through things like grants and funding.

32:54But honestly, if there were more grants, I mean, for me, that's what would have been nice, siguro.

33:03You would take more risks.

33:05Yes, it would have accelerated the growth faster.

33:09But in hindsight, I think I was also…

33:13For PayRuler, I was able to apply for international grants as well.

33:17And that's kind of how we ran the growth of PayRuler.

33:21We didn't really want to seek too much, focus too much on the fundraising, focus more on the revenue generating.

33:27Because at the end of the day, when you're raising investment or you're trying to get a fund, they want

33:32to look at your financials.

33:33So, that's the path we chose.

33:37I would be, if these grants were available in the past, wow, I would apply for each one of them.

33:44Actually, that's also what I thought.

33:45Now that I'm more aware of the grants that are available in different agencies, and I said, why haven't I

33:51thought of this?

33:52Or why wasn't I even aware of this?

33:55I used to work for a Singapore-based accelerator, one of the first in the ASEAN region, one of the

34:03biggest also at the time.

34:04And one of the things that we were teaching our startups, the founders at the time, was like, you know,

34:11if you can secure these assistance programs, do that over getting funding where you have to give stake in your

34:18company.

34:19Which means you kind of need to give up a little bit of control as well.

34:23So, seek out what assistance you can get because there are avenues for assistance.

34:28So, that's why, that was why I feel like it's a way to do business also.

34:39Correct.

34:39So, for you, our dear Tristan, we talk about what worked.

34:44Now, let's talk about what did not work.

34:46So, given the many applications that you receive, ballpark figure lang, what's the success rate?

34:55Yeah, I believe the success rate of, for example, for the setup program, we have around 60 plus million for

35:06this year.

35:07And I believe that we were able to utilize it now.

35:10So, we have, for example, for the success rate.

35:13Yeah, I think I should not surmise it based on this year, right?

35:17Because the success rate should be for the past year.

35:20So, in the past, I believe, like, for example, for before 2020, I think the success rate was really low

35:30because of, you know, actually, the program was also sort of like, how do we call that?

35:39A learning ground for the MSMEs to access financing and how they're going to manage the financing that they were

35:49able to get.

35:49And there are some really that really need, you know, as well as guidance on how they are going to

35:56purchase the equipment.

35:58Because most of the maybe the challenges was like the procurement of the equipment was not really that suitable for

36:07their operations.

36:08Like, there are equipment that could really like produce, allow them to increase the production volume, but they were not

36:15working on their market.

36:16So, like, for example, there's an equipment, for example, that upgraded their production like 10 times, but they were able

36:27to achieve their monthly production volume by just like maybe one week.

36:32So, that particular equipment.

36:33So, that's really under, you know, underused, underutilized.

36:37So, that's also one of the things that we need to look into when we're going to evaluate the proposal

36:43because we are strengthening now the technology needs assessment part where we evaluate if we are going to validate if

36:49this would really be the kind of equipment like what would be your target increase in the production volume or

36:55capacity because you are investing in this one.

36:58But I think the good thing with PayRuler right now is this is more on the utilization, for example, of

37:06AI and machine learning to upgrade their products, for example, their software.

37:11And we know that this would have, you know, a significant increase in their capacity.

37:17So, but for the past 20 years, to answer your question, I think we are targeting like an 80%

37:25success rate.

37:26So, we were able to achieve that.

37:28There are maybe like one or two that have, you know, problems in terms of their equipment, but we would

37:36always give them the chance to, you know, to improve.

37:40And they can, like, for example, request for the restructuring of their financing so that you can give them, you

37:47know, a leeway where they can improve their operations whenever they were not able to benefit from the equipment.

37:54So, if I have a takeaway and correct me if I'm wrong, even for startups, it's best that they collaborate

38:02with the OST, you know, from ideation until it moves forward.

38:07I think even for MSMEs also, it's best that they engage with the OST long before they even apply for

38:14a grant, you know, so that they can already be aided, you know, on what could work and what could

38:21be questioned, you know.

38:23Yeah, if I may respond quickly, the entry point actually for most of our MSMEs for the setup program is

38:31through our training and consultancy.

38:33We have this consultancy program, we call it the Manufacturing Productivity Extension or MPEX.

38:39We sent out productivity consultants and one of the recommendations for them is to upgrade and they have to apply

38:46for a setup.

38:47But most of those that are under MPEX, they have success, higher success rate because they were properly guided by

38:54the consultants.

38:55So, they have an overall picture of what they are going to do, which is technology upgrading is one component

39:01of that business strategy.

39:04And now there's a lot of conversation about AI and PayRuler is also in this space already.

39:10And so, both of you can comment, if there are entrepreneurs who are watching, what possibilities or opportunities can they

39:18also explore that gets funded by the OST?

39:27Yeah, that's why we have this collaboration right now with the ICT, DTI, and the OST.

39:34So, I think this is also a way of maybe for them to be clarified about what should the proper

39:42agency that you are going to approach.

39:44So, like for the ICT, they're more on promoting, of course, ICT technologies plus tech startups.

39:49But for the OST, if you're into, for example, product validation and you need to scale up with the use

39:57of technology, so they can really approach the OST.

40:00And we have now the innovation hub where we can provide them ideation assistance as well as the technology business

40:07incubator for incubation.

40:08And then for the scale up, the validation R&D programs we have and then, of course, the technology adoption.

40:15And if they are into, for example, they need to be mentored as well into marketing, into acceleration, that would

40:23also be the role of DTI.

40:26So, we hope that if they have this technology-based, I mean, maybe the MSMEs would be like a simple,

40:35how do we call that, products they're processing.

40:38But if that would require technologies, then, you know, they can approach the OST.

40:45So, now I'm down to my last few questions.

40:49So, I'm going back to TV.

40:53So, if there's somebody who has an idea and is watching us right now, and then he or she is

41:01saying, I don't have enough money, I don't have enough funding, I don't know where to start.

41:08What would you tell that person?

41:10Well, I think…

41:12But the person, assuming that the person is a good idea.

41:16Well, if it's a good idea, then, you know, in startup speak, the way we say that you need to

41:22do problem-solution-validation.

41:24So, this is what we used to teach at our pre-accelerator program when I was in the Singaporean accelerator.

41:31But it's also, I'm sure, what the programs of the OST are teaching, you have to, like, you have to…

41:37There's a certain framework that you can follow wherein you can validate whether there really is a problem that your

41:45solution is meeting and or validating what really is the problem.

41:50And honestly, this happens through many, many conversations.

41:54And when you're in tech, you're a tech person, you're an engineer, usually you're a bit daunted by that.

41:59Like, no, I don't want to talk to people.

42:01I don't want to…

42:02I already know what the market needs.

42:04But if you're starting out with an idea, honestly, you have to have these conversations.

42:10Back in the day, we would recommend, you know, you have to have done at least 30 of these interviews.

42:17See my reaction.

42:18Yeah.

42:19But thank you for bringing that up.

42:21And these aren't surveys how you don't go out and create a Google form and send a survey.

42:26No, they have to be actual conversations.

42:27So I did a corporate innovation project back in the day for an automotive company.

42:36And we literally were sent to the…

42:39Kanang mga taliyer ba?

42:40Kanang mga workshop.

42:42They were trying to validate a certain problem.

42:44They already had a solution.

42:45But you know when we talk to katong mga taliyers kay lahit bitaw ilahang problema di ay.

42:49So completely na-change ang solution.

42:53Because of the data we got on the ground.

42:55So if you have an idea, ay sag, worry bitaw kay.

42:59I mean, yes, you will need funding and all.

43:01But please focus first on the problem-solution fit and checking that.

43:06That's really the…

43:08Merag, it's a foundational thing ba?

43:10Yeah.

43:10You need to start out.

43:12And by the way, before I'll ask RD Tristan, it also, regardless of whether it's tech or not,

43:18but it also validates what I am also thinking.

43:22A lot of kanang people, especially for those who are working already and then wants to transition and become entrepreneurs,

43:30the common question which parang mag-uol ko when they ask that is ahadapit ang kuwarta, no?

43:36But it's…

43:37And now, as I grow older, I realize that's a wrong question to ask.

43:41It's actually, what is the problem that people are having and how can my business add value?

43:48Otherwise, if there's no problem, nobody will buy the service.

43:53I'm sorry.

43:54Okay.

43:56I mean, real talk, right?

43:58Yeah, correct.

43:59It's real talk, yeah.

44:00Yeah, because who will pay for it?

44:02Yes, exactly.

44:03And then how do you get it running?

44:04So, for…

44:06With Bay Ruler…

44:07Only one in a million was that problem, right?

44:10Like, it's your time to pay.

44:12Yeah, correct.

44:13Yeah, exactly.

44:14So, Moto, with Bay Ruler, the problem-solution fit was clear.

44:18So, with any idea, check your problem-solution fit.

44:21And then you go to your solution-market fit.

44:24But have those conversations.

44:26They're very important.

44:27Yeah, and I'm glad that you brought that up in a very concrete way, no?

44:33Okay, and now for RD Tristan.

44:36After this process, I know we talked about this in the earlier conversation, but this is like a summary.

44:41What are the support-man-send that they can get from there?

44:48Whether it's the OST or whether DTI or whether the ICT?

44:52Yeah, like, for example, the one mentioned by Timmy, I agree with that.

44:57You always start with problem-solution fit.

45:00And actually, that is the goal of the Innovation Hub.

45:04We can provide you with the platform or with the network, with the ICT and DTI to really check, validate

45:13your problem.

45:14So, we have the mentorship.

45:15We have also some events like the mixers, the networking, where we can expose you to some startups, some mentors,

45:23where you get to inspire.

45:24So, I really agree that don't focus on the funding yet because you need to firm up your idea.

45:32You need to develop your MVPs, a minimum viable product.

45:37You need to work on your business model.

45:41Okay, so you need to have a BMC, a business model canvas.

45:44So, you start with all of these basics and, you know, I think funding will just come to you if

45:50you have a good idea, if you have a good fit of your solution to the problem.

45:55And you can work or you can approach the OST.

46:00I think the most important thing as well is to be proactive in getting information.

46:05As much as the OST, DTI and other government agencies are promoting our programs and services, but we have realized

46:11that I think not a lot of people are really aware of these programs and services of the government.

46:17So, there's a need for you if you're really a startup.

46:20Because if you're innovative, you need to, you know, look for the information.

46:24You need to be proactive, search for those information.

46:26And we're doing our best here in the region where we really connect all the programs so that it would

46:33be easier for the stakeholders to digest and to, you know, to maximize as well the impact, not to, you

46:39know, work in silos where each agency has similar programs, separate programs.

46:44But we are connecting right now so that we can have more impact of these programs.

46:51So, get to know.

46:52And then we can also provide, if you're a startup, if you're an MSME, you can attend also some of

46:57the trainings that we are offering.

46:59You can avail of the consultancy services that we can provide so that you would be guided in how are

47:06you going to grow your company.

47:07And right then, if you have the good idea, if you have now the initial traction, then it would be,

47:15if you need scale up, then you can approach the OST again for the equipment upgrading, other forms of services

47:22that we can provide.

47:23And, you know, these programs are constantly evolving.

47:26So, we hope that you can also participate in the giving of feedback for the improvement of these programs.

47:33So, thank you, RD Tristan.

47:35Thank you, Timmy.

47:37I'm learning so much in this conversation.

47:41But among the most powerful, like, actually, are your closing statements.

47:47Okay.

47:47Kwanjide, if we have viewers and then you wish to become an entrepreneur, don't worry so much first about ahata

47:54lapit mga kwarta.

47:55Sadly, that's a common question.

47:56And I think the second most frequently asked question is where can I get funding, no?

48:01I think for what you emphasize, work on the problem-solution fit and then the rest will just follow.

48:09Work on that first.

48:10Yeah.

48:10It's not going to be easy, but, you know, if you have that foundation, then it will be easier for

48:16you to, like, really grow your business, be it a brick and mortar or be it a startup.

48:21The foundation of the problem-solution fit.

48:24And I really like what RD Tristan said, like, he was saying you need to be informed about the programs.

48:29Honestly, you know, in speak, in, like, modern-day speak, you got to hustle.

48:34And one part of the hustle is not just hustle as in sell.

48:38It's hustle and know, like, what is available to me?

48:42How can I make my money go further?

48:45How can I grow with assistance?

48:47And, yeah, hustle by knowing what the programs are.

48:50Like, I would really encourage.

48:52And, thankfully, one of our co-founders, our CEO, he was really, like, he really wants to know.

48:57And he's like, what's good?

48:59Not that one.

49:00Not that one.

49:01But he was so, like, diligent in finding out, okay, what can DOST do for our business?

49:08How can it help?

49:09I think that's a really important advice.

49:11I would second that.

49:12Like, be in the know.

49:13And then, I would second, talk to at least 30 people.

49:18Don't assume.

49:20No, don't.

49:21And then, if I may add, DJ, quickly.

49:23Yeah, so, regarding the problem-solution fit, it's very important.

49:26I think I would like to share it again.

49:29That you need, for that to have your problem-solution fit, you need to fall in love with the problem

49:34and not your solution.

49:36Yes, because if you are in love with your solution, it's difficult for you to repackage, to, you know, adjust.

49:44But you need to focus on the problem.

49:47And I think if you're also to get funding, it's not difficult for you to repackage your proposal or your

49:53pitch to DOST, to DTI,

49:55because you can easily align your product idea, okay, your pitch to what they are looking for because you know

50:03so well the solution and the problem.

50:07One again, last na lang.

50:08Okay, nakuha na akong hurricane.

50:10Do not ask where I get funding.

50:13First, do not ask ako makakwarta.

50:15I-solid sa ang problem.

50:17Problem, yeah.

50:18And then, i-solid di mo ang solution.

50:20And then, when both of them are already a good fit, then the rest will follow.

50:26Yes.

50:26Okay.

50:28So, the story of Pay Ruler reminds us that success does not happen overnight.

50:35And the opportunities from DOST remind us that entrepreneurs don't necessarily have to build alone.

50:43For those watching this afternoon with an idea of your own, perhaps the first step is simply to find out

50:51what's…

50:51No, not yet.

50:52I'll change my script.

50:53The first step is to simply understand what problem are you solving.

50:58Find the solution.

51:00Talk to as many experts and people possible.

51:03And when you have a good problem-solution fit, the rest will just follow.

51:09I revised the closing script.

51:11I'm DJ Moises.

51:14And shout out to Coffee First for supporting conversations that matter.

51:19This is Beyond the Headlines.

51:20Let's look deeper and think better.

51:23Have a good afternoon.

51:30It starts with a fresh shot of espresso.

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51:39Then comes the milk.

51:41Steamed smooth.

51:43Free and balanced.

51:45The perfect latte is not brushed.

51:47It is crafted.

51:49One cup at a time.

51:51Your perfect latte is ready.

51:54Coffee first.

51:55Then, everything else.

52:02You

52:03more than a split.

52:10What are you talking about?

52:12What are you talking about?

LOOKING FOR FUNDING TO GROW YOUR BUSINESS?

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