Venture capital groups in Southeast Asia have released new guidelines to set standards for managing startups.
This move comes as the tech industry begins to address growing concerns about unprofessional behavior.
The collaboration of leading private capital groups from Singapore, Indonesia, Thailand, Vietnam, and Malaysia has resulted in the launch of a document titled “Maturation Map: Corporate Governance in Southeast Asia Private Markets.”
“This foundational document sets a shared benchmark for startup governance, aiming to future-proof the region’s innovation economy and build the trust for long-term capital formation and public market readiness,” the associations wrote in a statement released on April 24.
Shane Chesson, vice chairman of the Singapore Venture and Private Capital Association (SVCA), said private investing in Southeast Asia is still new and developing.
“The ‘Maturation Map’… is a sign of the collective will and approach we can take to improving governance for better investment returns,” he said.
The SVCA plans to turn the guidelines into a simple playbook to share and discuss with startup founders and board members across the industry.
The document will serve as a helpful guide and represent the shared views of venture and growth investors, startup founders, board members, regulators, advisers, and legal experts.
“It is designed to strengthen governance from pre-revenue startups to IPO-ready companies—supporting sustainable innovation, scaling, and successful exits,” the statement said.
Regional investment firms, legal experts, and governance advisers helped create the guidelines. According to the statement, the result is a clear and practical framework designed to prevent management issues, promote careful oversight, and help promising startups succeed in going public or being acquired.
The associations said they were partly motivated by serious governance issues, like financial mismanagement and fraud, in countries such as Singapore, Indonesia, Vietnam, and the Philippines.
These cases showed the urgent need for stronger, proactive governance led by investors and other key stakeholders—especially in private markets with less government oversight.
The aquaculture tech company Fishery was recently accused of financial fraud in Indonesia. A forensic audit’s first review showed that the company’s founders and top leaders had falsely increased its revenue by almost five times between January and September 2023. They also changed the earnings numbers to make the company look profitable despite losing money.
Other issues were found at two startups—Skola, an edtech company in Vietnam, and PayMongo, a fintech firm in the Philippines. Both companies are facing accusations of poor management and stealing company money. Local police are now investigating these cases.
The guidelines suggest stronger steps for active due diligence, meaning investors should regularly check and improve their investment processes.
The document says this will help companies meet higher standards as they grow and be better prepared to face future challenges.
The guidelines also support using AI tools to help with governance. These tools can spot unusual financial activity, automate reports, and give better real-time monitoring.
The document says using this technology can improve accuracy, speed up tracking of company actions, and make it harder for fraud to happen.
In the last section, the guidelines suggest improving the support system for advisers and creating stronger rules for supervision and enforcement.
It emphasizes the need to protect shareholders’ rights and find legal ways to handle violations, highlighting the importance of holding people accountable and preventing wrongdoing.
The association calls the guidelines a “living document,” meaning it will be updated regularly based on feedback, changes in the market and ongoing discussions.
“The ‘Maturation Map’ helps set that direction for Southeast Asia, and we support the call for stronger follow-up measures like regular audits, board training, and ESG tracking to raise the bar together,” said Ng Sai Kit, the chairman of the Malaysian Venture Capital & Private Equity Association (MVCA).
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