AC Ventures and PwC Unveil Corporate Governance Playbook for Tech Startups

JAKARTA, INDONESIA, November 08, 2023 – AC Ventures together with PricewaterhouseCoopers (PwC) Indonesia released their first comprehensive playbook specifically targeted for tech startups, recently.

In an environmentally-conscious business sphere, it has been found that a staggering 80% of investors and 70% of consumers are attuned to sustainability in the processes of organisations, and new startups must be sensitive towards this growing trend if they are to remain relevant, grow and be viable.

The playbook, titled “Corporate Governance for Tech Startups”, is built upon the Indonesian General Guidelines for Corporate Governance, and offers advice on accountability, transparency and ethical behaviour in addition to sustainability, as the pillars upon which resilience and success can be built in a volatile business environment. 

The guide offers in-depth insights into the roles and responsibilities of all levels of the organisation, particularly at the director board level, which is key to ensuring good financial health while holding shareholder interest using sound organisational strategies. The robust framework coined the “Three Lines Model” defining the front lines, risks and compliance, and internal audit which culminate in ensuring that startups are empowered to circumvent any challenges that may inevitably arise in its operations.

Samira Shihab, Head of Value Creation at AC Ventures

From a financial perspective, the guide advises startups to maintain a funding buffer of at least two-years, channel their efforts towards profitability and manage their cash flows wisely along with sound capital investments; all of which will align with their overall growth aspirations.

The playbook also highlights the importance of meticulous financial reporting, emphasising precision, clarity and timeliness in all financial disclosures.

Michael Soerijadji, founder and managing partner at AC Ventures, explained: “This playbook underscores the importance of foresight and proactive measures. While tech startups in Indonesia, including our portfolio companies, consistently exhibit a vibrant entrepreneurial spirit, certain observable challenges and notable case studies serve as cautionary tales. These scenarios emphasise the significance of preventive strategies. With that in mind, AC Ventures and PwC Indonesia offer our combined expertise to guide founders in building solid structures, making informed decisions, and avoiding common pitfalls related to corporate governance.”

Yuliana Sudjonno, partner at PwC Indonesia remarked: “Robust corporate governance is essential today. This playbook and our partnership with AC Ventures underscores our commitment to ushering startups into a future defined by integrity, agility, and unparalleled success.”

The playbook lays down an optimistic roadmap for those startups set on integrating ESG principles. This involves consistent internal upskilling, fostering stakeholder dialogues, ensuring ESG criteria are integral in partner and vendor evaluations, leveraging technological advancements, nurturing collaborations, and championing transparency in all ESG-centric reports.

The playbook also throws light on industry giants who are setting the gold standard in ESG: Salesforce’s resolute commitment to environmental conservation and Patagonia’s deep-seated ethos of environmental stewardship stand out.

Looking ahead, the convergence of corporate governance with key tenets of accountability, transparency, sustainability, and ethics is undeniable. With investors leaning heavily into ESG nuance, transparent reporting has become non-negotiable, and novel oversight is a must, directly impacting a company’s growth and longevity.