Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.
Hello reader,
When the eFishery scandal broke, one of my first thoughts was about whether we’d ever be able to find a permanent solution to avoid such things happening again.
I remember noting that Temasek was one of the investors in the unicorn, which reminded me of how the fund lost money in the FTX collapse. The executives involved in the latter investment did receive penalties, but the more important question is whether VCs and other investors like Temasek – for all their wealth and power – will be able to avoid such scandals in the future too.
In today’s story, our guest writer shares a few tips to help VCs achieve that goal – read on if you’re curious.
Today we look at:
- How investors can prevent the next fraud scandal
- An Israeli AI firm raising US$7 million
- Other newsy highlights such as Tencent’s Yuanbao topping the charts in the Chinese iOS App Store and Sea Group growing its revenue for Q4.
Premium summary
Just keep checking, checking, checking
Image credit: Timmy Loen
Sometimes, it’s hard for me to believe that many big investors can get duped. Remember FTX? How did so many huge VCs and funds not see it coming? I’m not an investor so I struggle to see how, but perhaps these tips in today’s story might help in preventing such cases from happening again.
- Double check: Investors in late-stage startups should involve local industry experts in the due diligence process. These experts can help VCs spot inconsistencies in the finer details of their portfolio firms’ operations.
- Don’t just take their word for it: It might be easy to trust external audits, but investors should verify revenue and consider an investigative audit if things don’t line up.
- Blowing their cover: VCs can also require their portfolio firms to create a whistleblower framework for their businesses. This can include a dedicated channel for reporting, incentives for whistleblowing, and legal protections for employees.
Read more: The VC playbook for preventing another eFishery scandal
Startup spotlight
Alta way to the top
In the spotlight: SEA’s women in tech
Quick bytes
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
