"So that was back in 2021. And then after Revolution Precrafted, there was Zilingo in 2022, and then Tanihub and Investree - which were P2P lenders in 2023(24) - and then eFishery. So actually every single year we've been getting pretty big blow ups. But as I was looking at the cases for each of them, one thing I've noticed is the sophistication of the fraud is actually becoming more advanced." - Kristie Neo

Fresh out of the studio, Kristie Neo, an independent journalist covering tech and venture capital, joins us to dissect the rise of startup fraud in Southeast Asia and why it’s becoming more sophisticated. She shares her journey from broadcast journalism to investigative reporting, reflecting on the shift from high-growth hype to market corrections and corporate scandals. Kristie unpacks the eFishery scandal, explaining how founders manipulated financials and how investors got misled. She discusses why due diligence often fails, the role of unchecked valuations, and the impact of drying venture capital on the region’s startup ecosystem. Addressing investor confidence, Kristie explores what it will take to restore trust and accountability in Southeast Asia’s tech scene. Closing the conversation, she shares her vision for a more transparent startup ecosystem and what great looks like for the region’s next wave of entrepreneurs.

Episode Highlights: [00:46] Quote of the Day by Kristie Neo [01:07] The Rise and Fall of Southeast Asian Unicorns [03:53] From Fundraising Frenzy to Market Correction [09:22] Breaking Down the eFishery Scandal [15:25] How Did eFishery Manipulate Its Financials? [19:39] Why Investors Fell for the eFishery Story and Other Similar Ones [22:51] The Evolution of Fraud: From Vanity Metrics to Revenue Manipulation [27:59] Due Diligence & the Role of VCs in Startup Fraud [31:45] How Will This Impact Future VC Investments in Southeast Asia? [32:49] The Need for Legal Consequences for Founders Committing Fraud [38:45] The Secondaries Market and the Liquidity Problem [42:13] Southeast Asia’s Future: Can the Region Build Bold & Ambitious Businesses? [46:23] Closing

Profile: Kristie Neo, Independent Journalist (former DealStreetAsia, CNBC, We Are Social & Channel News Asia) https://www.linkedin.com/in/kristieneo/ and her article: "Thank you eFishery, Southeast Asia is officially off the kool-aid" https://www.linkedin.com/pulse/thank-you-efishery-southeast-asia-officially-off-kool-aid-kristie-neo-h0z0c/

Podcast Information: Bernard Leong hosts and produces the show. The proper credits for the intro and end music are "Energetic Sports Drive." G. Thomas Craig mixed and edited the episode in both video and audio format. Here are the links to watch or listen to our podcast.

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