Five Southeast Asian venture capital and private equity associations have jointly launched Maturation Map: Corporate Governance in Southeast Asian Private Markets, the region’s first guide to benchmark corporate governance for startups. The initiative signals a strong push toward transparency and long-term funding readiness, including IPO preparation.

The effort is led by the Singapore Venture and Private Capital Association (SVCA), in collaboration with Amvesindo from Indonesia, TVCA from Thailand, VPCA from Vietnam, and MVCA from Malaysia.

Governance Failures Prompt New Regional Framework for Startups

Shane Chesson, Vice Chair of SVCA and Founding Partner of Openspace, stated that the private investment landscape in Southeast Asia is still in its learning phase. He also mentioned that the guide serves as proof of a shared commitment to better governance for improved investment outcomes.

The guide was designed to reduce governance risks that have recently affected regional startups. It addresses governance from the pre-revenue phase through to IPO or acquisition, responding to financial and governance scandals in Singapore, Indonesia, Vietnam, and the Philippines.

Amvesindo: Maturation Map Is Start of Long-Term Collaboration

Eddi Danusaputro, Chair of Amvesindo and CEO of BNI Ventures, emphasized the guide's role as a starting point for sustainable improvement. “We invite all stakeholders, from startups, VCs, and regulators to advisors, to adopt and refine it together,” he said.

The initiative promotes long-term collaboration across the startup ecosystem to strengthen corporate governance practices.

Five Pillars of Startup Governance in the Maturation Map

The Maturation Map outlines five governance pillars:

• Active Diligence: Continuous monitoring beyond single reviews.
• Technology Use: Integration of API and AI for real-time oversight.
• Advisory Ecosystem: Ensuring the quality of external partners.
• High Standards: Enhanced board ethics, transparency, and reporting.
• Enforcement Mindset: Collective action against governance violations.

The guide also includes a Governance and Financial Maturity Matrix, a sample whistleblower policy, and regional case studies. Supporting materials such as workshops, director training, and an open-source playbook are being developed to facilitate implementation.

“This is about building enduring startups led by founders who understand the role of governance in growth,” said Vy Le, Chair of VPCA.

PHOTO: UNSPLASH

This article was created with AI assistance.