Local human resources and payroll management solutions provider Sprout Solutions recently concluded their Series A funding round with the company raising approximately $6 million from investors like Point72 Ventures, Dymon Asia, Next Billion Ventures, and Endeavor Catalyst.
Even existing investors like local firm Kickstart Ventures, as well as Singaporean firms Beenext and Wavemaker Partners still, took part after previously investing in Sprout’s late 2017 seed round.
Patrick Gentry, CEO and founder of Sprout Solutions, said that growing a business in the Philippines from the ground up is on an entirely different level compared to the likes of Silicon Valley. He noted that the trust barrier in the local investment landscape is elevated to the point that it becomes a main roadblock before seeing any signs of progress or success.
“You need to have solid business fundamentals and solid revenue streams, but more than that, you have to do the right thing and take care of people before you can establish that trust,” said Gentry.
The Sprout Solutions CEO added that one of their primary driving mechanisms relies on building trust with their clients, an end-goal that the company has been achieving through their every investment and innovation.
Sprout Solutions represents a newer breed of tech startups who do not rely on selling big ideas and growth stories, but instead present real business plans and generate actual revenue.
Since the startup landscape in the Philippines has become more conducive even for new businesses, it has also been put in the global map for foreign investments interests. Regarding government efforts in establishing a support system for accommodating this, startup-friendly regulations like the Innovative Startup Act and Ease of Doing Business Act have resulted in the appearance of new local venture capital groups.
For investors like Point72 Ventures, Sprout Solutions is a first for their investment presence in the Southeast Asian region, which according to Sprout is a reflection of the growing interest in the Philippine market for capital injection. During the 2017 round, Sprout Solutions raised $1.6 million, a far cry from their current raised capital.
“Our lead investor, Point72 Ventures, brings a lot of strategic value as they have several portfolio companies in other parts of the world that are analogous to Sprout. We are really lucky to have top-notch SEA-based investors who have been a big part of Sprout’s success already and continue to play a big part in our growth,” shared Gentry. “I love that international investors, both regionally and around the world, are taking notice and backing our vision. I’m really looking forward to the next five years in the Philippines.”