The rapid rise of Southeast Asia’s startup ecosystem has been one of the region’s most celebrated stories. But recent financial scandals have exposed a less glamorous side of the narrative, one plagued by governance lapses, weak oversight, and a culture that sometimes prioritises scale over substance. With the unveiling of the Maturation Map, a regionally coordinated governance playbook, we have an opportunity to create a new benchmark for governance.

As a lawyer advising startups, I’ve seen how such lapses, ranging from sloppy due diligence, weak internal controls, and dormant boards, can derail even the most promising ventures. Founders often focus on growth at all costs, only to discover too late that neglecting basic governance invites disaster.

The venture capital boom of the past decade in Southeast Asia fuelled incredible growth, but also fell over cracks in compliance and accountability. Now, with recent scandals fresh in mind (and a funding slowdown giving investors more leverage​), the region may be having a reckoning: it’s time for startups here to improve their governance.

About the Maturation Map, Southeast Asia’s new governance framework

The Maturation Map: Corporate Governance in Southeast Asia Private Markets aspires to serve as a shared blueprint for helping startups in the region scaling responsibly and preparing companies for global success. The document is the region’s first unified effort to raise governance standards across borders.

This collaboration was led by the Singapore Venture and Private Capital Association (SVCA), with support from the Indonesia Venture Capital Association for Startups (Amvesindo), the Thai Venture Capital Association (TVCA), the Vietnam Private Capital Agency (VPCA), and the Malaysian Venture Capital and Private Equity Association (MVCA). 

Why should founders and investors care about the Maturation Map for better governance?

Over the past few years, we’ve seen too many financial scandals involving startups in the region. Take eFishery, once a darling of Indonesia’s agritech sector and a recipient of more than USD 300 million in funding, now under fire for alleged financial irregularities and inflated sales numbers. Or Zilingo, the fashion tech startup that imploded after corporate governance questions triggered investigations and a dramatic boardroom fallout.

These failures didn’t happen in a vacuum. They were symptoms of a wider problem: startups scaling too fast without putting in place the checks, controls, and culture to manage the complexities of growth. Investors, meanwhile, often closed one eye to governance in the race for returns. The result? Reputational damage, capital loss, and a trust deficit that threatens to stifle innovation across the region.

A new governance playbook serves as a coordinated benchmark for governance standards across Southeast Asia’s startup ecosystem. It gives all players a common reference point for what “good governance” looks like, whether you’re an early-stage SaaS venture in Vietnam or a growth stage fintech in Malaysia. This initiative marks a significant step toward a more transparent, accountable, and resilient startup environment in our region​.

The five pillars of the new Maturation Map to guide founders and investors

The Maturation Map is a direct response to this governance gap. It lays out a five pillars designed to guide founders and investors through each stage of a startup’s journey from formation to exit:

• Active diligence: Moving away from one-time checks to ongoing accountability mechanisms.
• Use of technology: Encouraging the adoption of technology tools and dashboards for real-time financial and operational oversight.
• Advisor ecosystems: Strengthening the quality and independence of legal, financial, and strategic advisors.
• Higher standards: Setting best practices in board conduct, transparency, and internal controls.
• Enforcement mindset: Promoting collective action against misconduct and fostering a culture of compliance.

The document offers practical steps that founders and investors can implement such as governance maturity matrices, sample whistleblower policies, and regional benchmarks tailored to our region’s unique challenges. 

From a founder’s perspective, adopting the governance playbook isn’t just about ticking compliance boxes. It’s about building credibility. In a funding environment where capital is tighter and scrutiny is sharper, good governance is a competitive advantage. 

What’s next after the Maturation Map?

The Maturation Map is not a “one-and-done” document. The contributors behind the Maturation Map have committed to regular updates and conducting programmes from board training workshops to launching other open-source governance toolkits. As a lawyer who frequently advises early-stage startups, I see this as a positive step where we democratise access by coming up with free toolkits to encourage more governance among startups. 

For investors, the governance playbook provides a long-overdue baseline for cross-border consistency. Too often, VCs managing regional portfolios have had to navigate wildly different governance expectations from market to market. With this playbook, they can better manage risk, align with LP expectations, and push for stronger oversight across all investments.

For example, a founder following the governance guide may conduct regular internal audits and independent board oversight early, making nasty surprises like “hidden” debts or fake revenues far less likely. Meanwhile, VCs and angel investors gain better oversight and risk management across their portfolios by aligning on these common standards. The guide also can act as a safeguard that also keeps their own limited partners happier​. 

Final thoughts

Founders and investors should actively use this Maturation Map as their governance guide.

For startup teams, that means embracing the Maturation Map’s recommendations early like instituting proper financial controls, engaging reputable advisors, and holding yourselves to higher transparency standards even when nobody’s looking. These steps build the kind of trust that wins over customers and investors alike. 

For investors, it means expecting and enforcing these standards in every term sheet and board meeting from here on out and insisting on the safeguards outlined in the governance guide. 

Source: e27 / Digpu NewsTex