Addressing First Frontier Borneo Capital’s response to our article

Image credit: Timmy Loen

Tech in Asia recently published an article examining a term sheet offered by First Frontier Borneo Capital (FFBC), the VC partner for government-backed Sarawak AgriFoodTech Sustainability Impact Fund.

The article highlighted potentially unfavorable terms based on analysis from multiple sources that included a VC investor, a lawyer, and two experienced founders.

After it was published, Melissa Ong – group CEO of Impact Circle and managing partner of First Frontier Ventures (FFV), FFBC’s sole shareholder – published a response on LinkedIn criticizing the report’s accuracy and Tech in Asia’s integrity.

We stand by our reporting. Here’s our response to the points raised by Ong.

1. No maliciousness involved

Ong described the publishing of the article one day before an FFBC awards event as “coordinated, calculated, and malicious.”

I can confirm that Melissa Goh, the journalist who wrote the story, and I were unaware of any FFBC event up until Ong disclosed it.

The timing was simply determined by the completion of the story’s reporting and editing. It certainly wasn’t malicious, nor was it coordinated nor calculated in the way that Ong claims. As such, Tech in Asia rejects this baseless accusation.

We would also like to point out that it deflects from the legitimate questions raised by the term sheet’s contents, which were the focus of our report.

2. Given every chance to comment

Ong claims that our story was based on “unreliable” sources. And yet, she confirmed that the term sheet is authentic.

Our reporter had contacted Ong with specific questions about the term sheet, fund objectives, and investment criteria. However, Ong said she was unable to comment on the story due to an ongoing “due diligence process.”

Her reason does not hold water.

After all, some of our questions did not ask her to reveal secret information. We also doubt that her comments on the term sheet would undermine her deal negotiations.

Finally, we note that she has made substantial comments about the article since it was published, even as her company is “in the midst of an ongoing due diligence process involving multiple stakeholders.”

If only she had given those perspectives before the article went up.

It would have benefited Ong and her organization if she had actively helped shape the story rather than respond to it belatedly.

3. No claims that founders interviewed received term sheets

Ong said the founders quoted in the article were not offered this specific term sheet.

Our article never stated they were.

These individuals – two seasoned founders and a VC – were interviewed for their expert perspectives on the types of clauses present in the term sheet. In journalism, it is standard practice to provide context on market norms.

We have updated the original article to make this distinction even clearer.

4. On Kevin Brockland’s supposed conflict of interest

Ong pointed to a potential conflict of interest involving Kevin Brockland, one of the VCs quoted in the article. In particular, she noted his advisory role with Impact Ventures Network, a platform Ong founded.

Tech in Asia sought Brockland’s commentary based solely on his established expertise as an early-stage VC investor in Southeast Asia, qualified to analyze term sheet clauses.

Ironically, Brockland’s association with Ong bolsters him further as an independent and credible expert who is not afraid to offend.

Original article now free to read

In her response to Tech in Asia, Ong has made an unauthorized copy of our article available online. Sharing it with friends over WhatsApp is one thing, but sharing it on a social network is another.

But what’s done is done. In light of this, we have made the original article, “Founders fume over Malaysian VC’s term sheet,” freely accessible to all readers.

We encourage the community to read the analysis and the terms discussed, and form their own conclusions.

Founded in 2011 with a mission to build and serve Asia’s tech and startup community, Tech in Asia reports on the industry’s developments – both positive and challenging – and strives for fairness and accuracy. For more of our investigative reporting, head here.

Our reporter, Melissa Goh, remains in dialogue with FFBC and Ong.