August 13, 2025 • Funding
Singapore-based venture capital firm Antler has bucked the trend of declining startup investment in Southeast Asia, deploying $7.4 million across the region during the first half of 2025. The firm allocated $2.8 million specifically to seven AI startups through its newly launched AI Disrupt residency program, demonstrating strong confidence in artificial intelligence ventures despite challenging market conditions.
The AI Disrupt program represents a strategic response to the severe funding downturn affecting Southeast Asian startups. Regional seed funding dropped 68% year-over-year, while overall early-stage investments fell 53% during the first half of 2025. Against this backdrop, Antler's focused investment approach highlights the firm's belief that AI technologies remain a priority sector for growth and innovation.
Each of the seven AI startups graduated from Antler's four-week residency program with $400,000 in funding plus access to over $650,000 in AI-specific cloud computing credits, infrastructure resources, and development tools. The program targets companies with minimum viable products and established customer traction, providing a fast-track pathway for AI ventures already serving live customers.
The diverse portfolio of funded companies spans multiple industries and AI applications. Iris focuses on building no-code AI agents for workflow automation and real-time data capture, while Nugen develops domain-specific models for complex agent workflows. IndustrialMind.ai creates AI tools for manufacturing efficiency and predictive maintenance, addressing the growing demand for smart manufacturing solutions.
Lambdai Space leverages radar imaging technology for climate monitoring and insurance risk insights, reflecting the increasing application of AI to environmental challenges. Anamaya AI aggregates corporate travel data to improve booking efficiency and cost control for business travelers. AppSecAI automates application security testing, addressing cybersecurity concerns in the age of rapid digital transformation.
The final portfolio company, 5.Y (GLUCOSE), deploys AI-driven systems for customer engagement specifically designed for regulated sectors, demonstrating how AI solutions are being tailored to meet compliance requirements in industries like finance and healthcare.
Antler's investment strategy represents a counter-cyclical approach to venture capital deployment. While most investors have pulled back amid economic uncertainty, the firm has increased its focus on larger initial investments in select AI startups. This approach allows Antler to secure better terms and access higher-quality deals when competition decreases and valuations become more attractive.
Partner Winnie Khoo emphasized the accelerating pace of AI development, noting that 'AI startups are moving 10x faster than just 2 years ago, and AI Disrupt is purpose-built for founders with market-validated products to move and scale much faster.' The program's design reflects the compressed timelines and rapid iteration cycles characteristic of modern AI ventures.
The firm's commitment to AI investment builds on its 2024 track record, when Antler made 74 AI investments globally, establishing itself as one of the world's most active AI investors. This sustained focus on artificial intelligence demonstrates the firm's conviction that AI technologies will drive the next wave of technological innovation and economic growth.
Southeast Asia faces a significant disconnect between infrastructure investment and startup funding in the AI sector. While major technology companies committed up to $60 billion in AI infrastructure investments across the region, local AI startups received only $1.7 billion in funding during 2024. The region saw just 122 AI funding deals compared to 1,845 across the broader Asia-Pacific region.
This funding gap creates both challenges and opportunities for investors like Antler. Over $30 billion was committed to AI-ready data centers in Southeast Asia during 2024, building the foundation for AI adoption while local innovation companies struggled to access the capital needed to develop solutions that could leverage this infrastructure.
Co-founder and Managing Partner Asia Jussi Salovaara acknowledged the challenging environment while maintaining optimism about long-term prospects. 'We are prepared to match their speed and provide flexible early capital that enables them to accelerate, but we are also more selective,' he explained, reflecting the firm's strategy of making concentrated bets on the most promising opportunities.
The success of the inaugural AI Disrupt cohort has prompted Antler to continue the program, with the next residency scheduled to begin on October 21, 2025. Applications are now open for AI companies seeking to accelerate their growth through the intensive four-week program.
The program's structure addresses specific challenges faced by AI startups in Southeast Asia, including limited access to specialized technical resources and infrastructure credits. By providing both capital and technical support, Antler aims to help companies overcome resource constraints that often limit scaling capabilities for early-stage AI ventures.
The investment approach reflects broader industry trends where experienced investors are adapting their strategies to market conditions. By launching AI Disrupt specifically during the funding downturn, Antler positions itself to capture value when market conditions eventually improve and exit opportunities expand.
The firm's continued investment activity during challenging market conditions demonstrates confidence in the long-term potential of Southeast Asian AI startups. With established infrastructure investments creating the foundation for AI adoption and specialized programs like AI Disrupt providing targeted support, the region may be positioned for significant growth when broader market conditions stabilize.