ANGEL investment hub Mr. Group of Companies (MGC) said the five startups from Metro Manila it has been incubating since last year are on track to become medium enterprises by 2019.
The company, which has just turned one year in operations, coinvests in and comanages micro ventures engaged in information technology (IT), digital marketing, agriculture, food marketing and health and wellness.
“We could be proud of what we’re doing for the five business units. So far, even though they are start-up companies, they were able to be trusted by clients with reputable names,” MGC Chairman and CEO Rowi Bautista told reporters during the company’s recent news briefing. “However, they still need proper guidance and mentorship until they make it to graduation from being small to becoming medium.”
Currently, MGC is composed of five companies, namely Mr. Geek Mobile Solutions Inc.; Mr. Click eMarketing Services Inc.; Mr. Sweet Marketing Corp.; Mr. Green Rural Development Inc.; and Mr. Cool International Trading Corp.
The group is now open to accept new micro, small and medium enterprises MSMEs members within and outside of Metro Manila, with the launch of its advocacy to provide further support and assistance to them.
Through an “Angel Investment Platform”, the holding firm will serve as the bridge between MSMEs and potential investors as the “angels”.
“We’re inviting [more angel investors] because we’re going to issue more shares of stocks. This year we’re planning to acquire 10 more MSMEs,” he said.
Following their success of raising P50 million to bankroll the micro enterprises they are incubating, MGC is bullish to also gather the same amount with their online channel.
“We target to raise around P50 million with angel investors because we will be getting 10 micro MSMEs and we will provide P5 million for their seed capitalization,” he noted.
MGC’s research team aims to tap MSMEs from high-growth industries, such as health and wellness, IT, digital marketing and tourism.
“Of course, there will be exceptions. If an MSME can present his business very well ,and we can feel the passion and business potential even if it is not part of the high-growth industries, we can accommodate. Remember that there are also entrepreneurs who create their own industries,” he said.
While the concept of angel investment is not news since it’s been already exercised here in 2019 or earlier, Bautista conceded this has not been practiced the way it should be.
An angel investor is defined as a “business angel” or savior that helps start-up companies survive.
“Normally, an angel investor is an investor for a venture or a start-up company that will put money to an enterprise and, in return, he will get an interest income and, at the same time, some angel investors will also get ownership in the company,” he added. “But in the industry right now, the primary purpose is, of course, the interest income [or] the return on the investment. There’s nothing wrong with that. It’s just that we need to educate our citizens more because we need a real support from the private sector for the MSMEs to grow.”
With their initiative, Bautista emphasized that their intention is to make a new face of angel investment.
“We would like to make the word ‘angel’ really become positive, wherein we’re really here to help out. That the primary purpose for you to become an investor is to help, and the earnings or the interest income will just be a secondary purpose.”
While both the government and the private-sector support the MSMEs, however, the chairman and CEO appealed to them to do more in terms of more financial aids and business mentoring.
On their part, he said MGC will continue to give MSMEs the proper guidance and coaching, particularly for back-office requirements, such as accounting and finance, human resources, legal, marketing and project management, among others.
Likewise, he assures angel investors that their investments are safe and transparent, since they can have access from the platform updates about the business of the entities they supported, and even see their financial results.
He is positive that the public, especially those with financial means, will become more aware of angel investing and play with it to help the MSMEs, which contribute a lot to national development.
His study showed 30 percent of the country’s GDP and 67.2 percent of the employment population come from the MSME sector.
“By supporting MSMEs, we can create more jobs and help grow our economy, thus, alleviating poverty,” Bautista said.