The BC Age for VCs in the Philippines

If you're designing a tiger economy, the ecosystem to fuel high-octane growth must have a whole range of animals. One of the species you want to have are VCs. No, not Vietcongs -- venture capitalists. They who build companies on a concept. They who are willing to pour capital into fledgling industries with uncertain futures in the hopes of a big payout. They who prefer the 3-point shot to the easy layup. They who eat risk for breakfast, and who look upon failed businesses as a badge of honor. Different they are: What corporate chieftain will risk his honor, his prestige, his career, backing projects that may fail?

Businessweek highlights how far the Philippines is from developing a vibrant VC sector. But we all have to start somewhere.....

If you're an investor thinking of putting some money into research and development in Asia, you're probably going to look at China and India, maybe Vietnam. It's unlikely you're considering the Philippines. The country is known for its call centers, and the semiconductors which make up 70% of its exports, thanks to factories like Intel's (INTC) semiconductor packaging plant. But the Philippines isn't exactly a hotbed of innovative startups and entrepreneurs.

Dennis Posadas is trying to change that. A 40-year-old electrical engineer and alumnus of the University of the Philippines, Posadas spent 14 years working in the semiconductor industry — for Analog Devices (ADI) and Intel. In 2005 he left his job as a technology business analyst for Intel and joined the Ayala Foundation, the philanthropic arm of Ayala Corp. (AYYLF), one of the largest conglomerates in the Philippines.

Ayala Land, one of the group's companies, has started building a $120 million science park on the Metro Manila campus of the University of the Philippines, with the first buildings due to be finished by the end of the year. Posadas is offering his expertise to help nurture the development of entrepreneurial companies there. Ayala and the university now operate one high-tech business incubator for local startup companies, and have plans to open more.