AI-First: Scaling Smarter, Growing Faster

Artificial Intelligence (AI) is quickly changing how startups scale and how investors choose where to invest. At SaaScon PH 2025, the AI-First: Scaling Smarter, Growing Faster forum brought together top investors and tech leaders to talk about the huge impact of AI in today’s startup setting. 

The session provided sharp insights into the biggest trends, challenges, and opportunities shaping the future of startups and investment in the Philippines and Southeast Asia.

Franco Varona, Managing Partner at Foxmont Capital Partners, took the stage to talk about how far the Philippine startup ecosystem has come and how it’s breaking records and rewriting the regional playbook. 

He shared key insights from the 2025 Philippine Venture Capital Report, co-authored by Foxmont Capital Partners and Boston Consulting Group. He highlighted where local startups are gaining traction, what sectors are drawing investor interest, and how the numbers reflect growing confidence in the Philippine tech ecosystem. 

Some of the key takeaways from the report include: 

• 2024 Was a Record-Breaking Year for Startup Funding: Last year, Philippine startups raised over $1.1 billion in primary venture investments, the highest ever for the country. What does this mean? The local tech ecosystem is maturing and attracting serious interest from investors at home and abroad.
• Bigger, Growth-Stage Deals Are on the Rise: After a wave of small, early-stage deals in 2023, 2024 saw a shift toward larger, growth-stage investments. Investors are putting their money behind startups that have proven they can scale.
• Fintech Still Leads, but Cleantech and Digital Payments Are Booming: Fintech remains the top sector for VC funding, but cleantech and digital payments are quickly catching up. 
• Online Trading and Retail Investing Are Heating Up: Investment platforms are making it easier for Filipinos to trade stocks and invest online, even with small amounts of money. This trend is bringing more people, including those from lower-income backgrounds, into the world of investing.
• Emerging Markets Follow Similar Investment Patterns: Emerging markets like the Philippines tend to see the same industries rise to the top for investment. This means the local ecosystem is maturing along a familiar path, with investors looking for the next big thing in sectors that have already proven successful elsewhere.
• Social Media Is Now a Major Marketplace: Social media platforms like Facebook, Instagram, and especially TikTok have become powerful engines for e-commerce and business growth. 
• Financial Mobility Is Growing Nationwide: More people now have the tools and opportunities to manage, grow, and invest their money.

These insights show that the Philippine startup scene has grown stronger. It’s now a major player in the region, and it has drawn global investors and is building startups ready to lead Southeast Asia’s next tech wave.

During the breakout session, AI FOMO vs. Real Opportunity: How Investors Are Separating Hype from High-Return, three top investors (Jennifer Ho, Partner at Integra Partners; Danika Ariadna, Vice President at Cercano Management; and Joan Yao, General Partner at Kickstart Ventures) shared expert insights on AI startup investments and how investors differentiate between real opportunities and hype.

Not All AI Is Worth Investing In

Right off the bat, Ho pointed out that AI is going to be commoditized, meaning it’s going to be everywhere soon. Yao agreed to this, noting that AI is the next big thing in investment. 

However, just because a startup uses AI doesn’t mean it is a great investment. According to Ariadna, her company is exploring AI startups, but they’re very cautious. They don’t automatically invest in AI startups unless they see a solid reason. They’re especially careful about high valuations and whether the product can survive long-term. 

The panelists stressed that AI that solves real problems gets noticed. They gave useful examples of how AI is being used in ways that make sense, and how that can lead to investments.

Jennifer shared a story about a health-tech platform focused on diabetes management. Before using AI, it took a coach 30 to 40 minutes to guide each user. After adding AI features, the process became faster and more efficient, resulting in better user engagement and retention. More people used the app, and the company was able to scale without hiring a large team.

This kind of change, where AI improves how a product works and helps it grow, gets investors’ attention. It’s not just about the technology; it’s about the impact.

Ariadna mentioned another example from a traditional healthcare company. The business isn’t a tech startup, but it started using AI to reduce admin work for nurses. With a shortage of medical staff, the company wanted to help nurses focus more on patient care. AI was used to automate back-end tasks, saving time and improving efficiency.

This showed that even in traditional industries, AI can support operations and make a real difference. That’s the kind of application investors take seriously.

The panelists left some simple yet powerful advice for founders looking to earn the “yes” of AI investors: 

• Don’t build an AI startup just to ride the trend. Make sure you’re solving a real problem.
• If you’re pitching to investors, be ready to explain what makes your solution unique and hard to copy.
• Show how your product fits into people’s lives or businesses, and have a plan for how you’ll grow.

The Inner Circle brought together 10 early-stage SaaS founders and 10 local and regional investors in fast-paced, one-on-one conversations.

For founders, this was a chance to pressure-test their pitch and get immediate reactions from real investors. On the investor side, it was about spotting teams that could execute. Many were listening for signs of product-market fit, traction, and a business model that could hold up beyond the early stages.

Founders walked away with meaningful insights, while investors gained a clearer sense of who might be worth betting on.

AI and technology are quickly becoming game changers for businesses, especially for startups. The insights shared at SaaScon PH 2025 highlight just how crucial it is for founders and investors to focus on real solutions that solve pressing problems. 

With the right AI tools, like those from Sprout Solutions, business can enhance operations, boost productivity. By tapping into AI-assisted solutions like Sprout HR and Sprout Payroll, businesses can scale smarter and stay ahead of the competition.

For more insights on AI and how it changes the way companies scale, visit Sprout’s blog page!