David He: E-Fishery Scandal Breakdown, Investor Red Flags & Legal Risk Lessons for Southeast Asia – E579

David He, partner at Gunderson Dettmer sits down with Jeremy Au to dissect Southeast Asia’s shifting startup and legal terrain. From the fallout of the eFishery scandal to the rise of ESG compliance and convertible notes, they explore how investor behavior and founder strategies are evolving. The discussion highlights governance gaps, tougher diligence, and why regional funding optimism may have stalled again.

07:12 E-Fishery Scandal as a Southeast Asian Theranos: David compares eFishery’s collapse to Theranos—highlighting financial mismanagement, weak controls, and how one scandal can shake an entire region’s credibility.

10:25 Due Diligence Now Takes Months, Not Weeks: Term sheets are no longer quick investors stretch due diligence timelines, run legal and commercial checks in parallel, and uncover more issues late in the process.

12:38 Surge in Use of Convertible Notes: Investors increasingly prefer convertible notes for their downside protection and maturity leverage, especially during uncertain market conditions.

19:15 ESG & Compliance Burden Rising for Founders: Startups now face investor-mandated ESG, AML, and governance standards originally meant for large institutions—often without the internal capacity to manage them.

24:32 Tariffs Trigger Global Uncertainty, Slow Exits: Trump-era tariffs hit Indonesia and Vietnam, affecting investor confidence and delaying IPOs and M&A despite startups themselves not being directly impacted.

27:11 Philippines Up, Indonesia Down: The Philippines is gaining momentum with underexposure and English fluency, while Indonesia cools down from overinvestment and post-eFishery fallout.

30:05 Down Rounds Are Less Stigmatized: Founders and investors alike are more open to valuation markdowns, with flexible deal terms helping break the deadlock in difficult fundraising climates.

Watch, listen or read the full insight at https://www.bravesea.com/blog/david-he-scandal-shakes-trust

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