The Trust Equation: Why Corporate VCs Aren't the Villain in Your Startup Story "One yes can open doors you didn't know existed. One no from the wrong person can kill dreams before they start." — Pavel Veselovsky, Corporate Venture Strategist Hey everyone, Let's address the elephant in every founder's pitch deck. You know that moment when a corporate VC shows interest in your startup? That split second where you feel simultaneously validated and terrified? Like getting asked to prom by the most popular kid in school who also happens to be your biggest competition. Yeah, that feeling. We need to talk about it. 🚀 Thanks for diving into SEA of Startups. If you're into raw convos, sharp takes, and real stories from Southeast Asia's startup trenches—Subscribe for free to get new drops straight to your inbox. No fluff. No FOMO. Just the good stuff. The Great Corporate VC Mythology Here's what every founder whispers at startup events: "Corporate money comes with strings attached." "They'll steal your idea and build it themselves." "It takes six months to get a decision, then they want to control everything." Sound familiar? I thought so. But here's the plot twist: Pavel Veselovsky, who's navigated both sides of this equation—from running PWC's venture programs to now advising startups across Southeast Asia—just shattered every assumption I had about this space. The numbers tell a different story than the horror stories: 28% of all venture-backed companies globally now have at least one corporate investor Southeast Asia is seeing explosive CVC activity, especially in Thailand Yet 95% of founders are still operating on outdated Silicon Valley mythology The Real Game: One Yes vs One No Here's the insight that stopped me cold during our Bangkok recording: Traditional VCs: You need ONE yes. One believer who writes the check. That's your path to success. Corporate VCs: You can have every executive saying yes, but ONE no from legal, cybersecurity, or procurement can kill everything. It's not about speed versus slowness. It's about offensive disruption versus defensive innovation. Two completely different games with completely different rules. Pavel put it perfectly: "Corporates can spend one year discussing which color the button should be." The irony? This "weakness" might actually be your startup's protection, not your threat. The Corporate Zombie Phenomenon We discovered something I've never heard anyone discuss: corporate zombies. These aren't the walking dead. They're innovation projects that become impossible to kill even when they've clearly failed. Pavel explained it like this: "Sometimes it's easy to start funding an initiative, but it's harder to stop funding. We spent so much money on this for five years—it can't be easy to say it's not viable anymore." Think about that. While founders fear corporates will steal their ideas and execute them faster, the reality is most corporates struggle to execute anything quickly. They're often drowning in their own bureaucratic complexity. Your real competitive advantage isn't just your speed—it's your ability to pivot, kill projects that don't work, and start over. Corporates often can't. Why Southeast Asia Is Playing Chess While Silicon Valley Plays Checkers While everyone assumes Singapore is the only game in town, Thailand is quietly becoming a CVC powerhouse. And it's not copying anyone. The data Pavel shared from TechSauce Summit: K-Bank, SCBX, Krungsifineret: dozens of internal innovations in just one year Retail giants like CP Group and Lotus: building their own innovation engines Energy companies like Big Rim and Banpoo: leading corporate innovation But here's the kicker: Thailand built its own Large Language Model called Typhoon (backed by one of the country's largest banks). Not copying OpenAI. Not licensing from Google. Building their own. This isn't about East versus West. It's about integrated global innovation networks where the best ideas win, regardless of geography. The Five-Element Framework That Actually Works When traditional VCs and corporate VCs co-invest (which happens more than you think), Pavel breaks down what makes it work into five elements: Strategy: Clear mission, vision, and alignment with leadership People: Right hires with the right mindset and background Organization: Formal structure connecting to VC networks Operations: Processes, tools, decision-making mechanics Metrics: Performance measurement and reporting It's like competitive ballroom dancing. Both partners need the same vision, complementary skills, structured choreography, flawless execution, and a way to measure performance. When it works, it's electric. When it doesn't, everyone steps on each other's toes. The Authenticity Advantage Here's what caught me off guard: the best corporate VCs aren't playing defense anymore. They're actively seeking disruption. Pavel's insight: "Most of the time, corporates are not capable to do the same because they can spend one year discussing which color the button should be. From my side, it's really a myth that corporates will easily hijack an idea." The real dynamic? If that corporate is investing, it's because they need what you have. You're not the weaker party—you're the solution to their innovation problem. The future belongs to founders who understand this shift and corporates who can move beyond zombie projects toward authentic partnerships. What Keeps You Up at Night? Here's my rapid-fire reality check for founders: Most underrated opportunity: Climate tech and energy tech in Southeast Asia Best advice for corporate money: Find the right stakeholder (not the biggest checkbook) Hard truth: Good numbers aren't enough anymore. Good storytelling often beats good metrics. Five-year prediction: More major acquisitions where corporate investors played crucial early-stage roles. More Southeast Asian founders succeeding globally, not just regionally. The Real Revolution The AI startups are capturing 37% of all CVC-backed funding globally. Southeast Asia is following similar patterns, but with local twists—like Thailand's Typhoon LLM. The companies winning aren't chasing Silicon Valley metrics. They're solving problems specific to their markets with technologies that actually work for their users. 🎧 Full deep dive conversation with Pavel Veselovsky drops today on Apple Podcasts, Spotify, YouTube, and Substack Audio. The Trust Equation Innovation isn't just about speed or strategy. It's about trust—the invisible kind you feel in a room before a term sheet gets signed. One yes can open doors you didn't know existed. One no from the wrong person can kill dreams before they start. That's the dance between corporates and startups. It's not always elegant, but when it works, it's electrifying. For founders: Your employees are already using AI tools in secret. Instead of fighting it, give them sanctioned tools that learn and improve. For corporates: Stop funding zombie projects. Start funding solutions to problems that keep you awake at night. For everyone else: Southeast Asia isn't copying anyone's playbook anymore. We're writing our own. The future belongs to builders who embrace complexity rather than fight it. Whether you're a founder considering corporate money or a corporate executive thinking venture strategy, the opportunity is massive—but only if you understand the actual game being played. What's your take? Are you seeing real collaboration between corporates and startups, or just expensive theater? The comments might be more honest than the quarterly reports. Next week: We're exploring how Southeast Asian fintech is quietly revolutionizing financial inclusion while everyone debates crypto regulations. Spoiler: the real innovation isn't happening where you think. Until then, maybe focus on building trust that lasts longer than the demo. — Kim Disclaimer: All views shared are personal opinions and don't represent any organizations mentioned. If this hit different, share it with that one founder who's scared of corporate money or that exec who swears they understand startups. Share This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit seaofstartups.substack.com
