Corporate Governance for Tech Startups

CCAcVenturespwc Playbook Corporate Governancefor TechStartups October2023 WwW.CCV.VC Jakarta:PrasperityToweriv.37,DistrictB,scBDLot28,JI.JendSudirmanKavling52-53,Jakarta(1219o)indcnesia Ploybook-CorporcteGovsrnoncafo-TschStortufs Authors CCAcVenturespwc SamiraShihabisaPrincipalatACVentures.YulianaSudjonnoisαPartner,Sustainability Sheleadsthefirm'sValueCreationTeam.andRiskAssuranceLeaderatPwCIndonesia.Sheleadsthefirm'sassurancepractice,ShefocusesonGoodGovernance,InternalAudit AngelowijayaisaCommunitySpecialistat ACVentures. Strategy,andCapacityBuilding- ValentineHadeliisaValueCreationAnalystatACVentures. AndriasHendrikisαTaxPartneratPwCIndlonesia. GlenyisaRiskAssuranceSeniorManageratPwCIndonesia. RizkiAdityaisαRiskAssuranceSenior ManageratPwCIndonesia. RakaAkbarisαRiskAssuranceManageratPwCIndonesia. VanessaValerieisaRiskAssuranceManageratPwCIndonesia. PwC'sDisclaimer ThlspublicotionhosoeenpreporecforgenerolgulcanceonmattersofInterestonlyanclcoesnotconstitute professionalacvics.Youshouldnotoctupontheinforrmationcontoinedinthispublicctionwithoutobtainingspscific professionclocvice.Norepresentotionorwarranty(expressorimplied)isgivenastotheaccuracyorcompletenessof JojaunsgoKnpJoAlqisuodsaiiqplAuoanssnoidasgorouopsuaopunseakoduesaquos!!upsoyanyconsequencesofyouoranyoneelseccting,orrefrciningtoact,InrelicnceontheInfomationcontcinedinthis publicationorforanydocisionbasodonit. Thedocuments,orinformotionobtainedfromPwC,mustnotbemodleovailololeorcopied,inwholeorinpart,toany otherpersons/portieswithoutourpriorwrittenpermissionwhichwemay,atourdiscretion,grant,withholdcrgrontsubjecttoconclitions(includingconditionsastolegolresponsiloilityorabsencetinereot) PwCInclonesioIscomprisecofKAPTonudirecjc,Wiloisoncl,Rintis&:Rekon,PTPricewoterhouseCoopersIncionesio Adivisory,PTPrimaWahcnaCarakc,PTPricawaterhouseCooporsConsultingIndlonesia,andPwCLegalIndonesio,cach ofwhichisaseparotelegalentityandallofwhichtogetherconstitutetheIndonesianmemberfirmsofthePwCglobal network,whichIscollectivelyreferrecltoosPwCInclonesio. 2023PwC.Allrightsreserved. 2 PwCreferstothePwCnetworkanc/oroneormoreofitsmemberfrms,ecchofwhichisoseporotelegolentity.Pleaseseehttp:/www.pwc.com/structureforfurtherdetoils. TableofContents TableofContentsPage3 ForewordfromAcVenturesPage4 ForewordfromPwCIndonesiaPage5 IntroductionPage6 IntroductionofCorporateGovernancePage7 FourKeyPillarsofCorporateGovernancePage8 AccountabilityPage8 Transparency8obDd SustainabilityPage10 EthicalBehaviorPage12 ThreeLinesModelPage13 BOD&BOCBestPracticesPage16 SummarizedScope/RolesoftheBODandBOCPage16 BuildingBoardofDirectors:BestPracticesPage18 BuildingBoardofCommissioners:BestPracticesPage18 FosterIndependenceandAccountabilityPage18 ContinuouslyLearnandAdaptPage18 Page19 TreasuryManagementPage20 AccountingPage22 TaxPlanningPage24 RiskManagementPage25 InvestingInESG:AStrategicImperativeforTechStartupsPage27 WhyembedEsGintostartups'CorporateGovernance?Page27 ImpactPrinciplesatACVenturesPage28 HowmightstartupsembedESGintotheirCorporateGovernance?Page30 BestPracticesfromESGAdvocatesPage32 LookingAheadPage33 PwC'sInsightsPage34 Ploybook-CorporcteGovsrnoncafo-TschStortuf:s FromBasictoBrilliance: MasteringStartupGovernance Inrecentyears,corporategovernancehasshiftedfrom beinganoptiontoanecessityforstartups.Intoday'spost-Covidlandscape,withitslimitedavailabilityof diligenceonstartups,Thisaccentuatestheneedforrobustgovernancestructures,especiallytortechcompanies,regardlessoftheirsize,Effectivecorporategovernance boostsinvestorconfidence,underliningitsvitalroleinthesustainabilityandsuccessofthelocaldigitaleconomy. ACVentures,inpartnershipwithPwCIndonesia,isproudto presentthisplaybook:ameticulouslydesignedguideoncorporategovernancefortechstartups.Thisresourceaims MichaelSoerijadjithecompetitivebusinesslandscapewithawell-defined Founder&ManagingPartner CCAcVentures Thisplaybookunderscorestheimportanceofforesightandproactivemeasures.WhiletechstartupsinIndonesia,includingourportfoliocompanies,consistentlyexhibita vibrantentrepreneurialspirit,certainobservable challengesandnotablecasestudiesserveascautionary preventivestrategies.Withthatinmind,ACVenturesand PwCIndonesiaofferourexpertisetoguidefounderstobuildsolidstructures,makeinformeddecisions,andavoidcommonpitfallsinregardstoCorporateGovernance. Thisguideofferspracticaladvice,centeringon accountability,andethicalbusinesspracticesItaimsto helpstartupsestablisharobustfoundationthatpromotessustainablegrowthandmaintainsinvestortrust. Weaspireforthisplaybooktobeacornerstonereference, governancechallenges,Byimplementingthestrategiesandbestpracticessuggested,startupscanreduce potentialrisks,fosteringabusinessenvironmentthat championsinnovationandgrowth. Leveragingourcollectiveexpertise,ACVenturesandPwC SamiraShihabIndonesiaremaindevotedtosteeringtechstartupstowardsexcellence,nurturinganecosystemcharacterized Principal,bytrustandinnovation. HeadofValueCreation CCAcVentures 4 ACVentures|Fu/CInd:nssio Foreword fromPwC Indonesia Thecurrenteradrivesthebusines