David He: E-Fishery Scandal Breakdown, Investor Red Flags & Legal Risk Lessons for Southeast Asia – E579
"People are gonna be cautious, which they should be but they're not at a point where they're saying, 'Hey, we're just not gonna, we're gonna close the checkbooks and we're gonna wait four years to see what happens.' So their companies are reaching the ends of their cash runways. They're gonna need funding. These are companies that I think a lot of investors have conviction in, and I don't think this staring contest to wait for a down round is gonna be as pronounced as it was, for example, back in '23. Founders and existing investors are willing to take that markdown nowadays, from what I've seen. There's not as much stigma attached to it, I think, as there was two years ago. So at least in that sense, I think that the gridlock of this kind of staring contest between VCs and founders is getting progressively better, in a very noticeable way." - David He, partner at Gunderson Dettmer
"Let's hit the brakes a bit on expansion at all costs. Let's focus on the markets that we understand, the customers that we understand. Let's roll out products and see how—rather than just building a pipeline of products—and get to financial sustainability much quicker than we otherwise would. What that means is it will unlock different sources of capital that your traditional VC-backed, loss-incurring, cash-burning startup wouldn't do. So the moment you can become profitable or flip profitable at will, that unlocks access to venture debt, private credit, perhaps small cap PE money." - David He, partner at Gunderson Dettmer
"Hopefully interest rates gradually continue to be brought down. And I think another thing we talk about is AI, the focus on utilizing AI tools, right, as a source to not only build better products for customers but also to reduce costs and optimize internally. So all those things were leading, I think, to what you refer to as an easing of the fund winter or a spring. Personally, I saw more activity, I think, in the second half of '24 than I did in the 12 or 18 months combined preceding that." - David He, partner at Gunderson Dettmer
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: