Understand the VC term sheet risks for founders before signing.

A VC term sheet may look like a golden ticket, but it often carries hidden liabilities that founders can easily overlook.

From liquidation preferences to board control and personal legal exposure, we break down what every founder should know before signing.

Real case: A controversial term sheet from a Malaysian VC firm shows how investor-friendly terms can cost founders control—and trust.

Learn how smart insurance strategies like D&O can protect your leadership when things get complicated.

Scroll through to uncover the hidden risks and how to protect yourself.

When a vendor fails — whether due to cyber breach, operational error, or compliance lapse — the fallout rarely stops with them. Regulatory scrutiny, customer backlash, and financial loss often lands squarely on the institution that outsourced the service. This is the essence of third-party risk: even when you don’t directly cause the harm, you still bear the responsibility.

Real-World Impact: When Vendors Slip, Institutions Pay

Case 1: Wirecard Scandal and Compliance Fallout in Singapore

In 2023, the Monetary Authority of Singapore (MAS) imposed fines totaling S$3.8 million on Citibank, DBS Bank, OCBC, and Swiss Life due to inadequate AML/CFT controls in transactions linked to Wirecard-related entities. While the misconduct originated with Wirecard, financial institutions were held accountable for their insufficient oversight.

Key Lesson: Regulatory fines and compliance failures can trigger direct financial losses, even when the root issue lies with an external partner.

Case 2: Accellion Vulnerabilities and the Singtel Fallout

In late 2020 and early 2021, software vulnerabilities in Accellion’s File Transfer Appliance (FTA) triggered a series of data breaches affecting multiple organizations—including Singapore’s telecommunications giant, Singtel. The breach exposed personal data of approximately 129,000 customers, leading to regulatory concern and reputational impact. In the broader fallout, Accellion paid $8.1 million to settle class-action lawsuits brought by affected institutions globally.

Key Lesson: When third-party software fails, financial institutions can face dual exposure—from both direct remediation costs (legal, technical, reputational) and external legal actions. Vendor risk, if unmitigated, can escalate into multimillion-dollar liabilities.

The eFishery scandal highlights what can go wrong when fintechs grow fast under a multi-fund structure — where each investor has different objectives, timelines, and expectations.

From governance breakdowns to overstated revenues, it’s a reminder that internal misalignment is just as risky as external threats.

Scroll through to learn:

• What a multi-fund structure actually looks like
• Where oversight failures can happen
• How D&O, PI, Crime, and Cyber Insurance can protect leadership, investors, and continuity

If your company is scaling with capital from multiple sources, these are risks you can’t afford to ignore.

D&O lawsuits arise when leaders are accused of wrongdoing in their fiduciary duties — whether from fraud, breach of duty, negligence, or misrepresentation. These risks extend not only to executives within portfolio companies, but also to fund managers who hold board seats and shape governance. The following case studies highlight where things have gone wrong — and how D&O insurance can act as a critical safety net.

Case Study 1: When Investors Get Sued – Temasek, SoftBank and the FTX Fallout

What Happened: In 2023, Temasek, SoftBank, and other major VC firms were named in a U.S. class-action lawsuit for allegedly “aiding and abetting” fraud at crypto exchange FTX. Despite extensive due diligence claims, investors alleged the VCs failed to catch red flags and helped validate the now-defunct platform.

D&O Risk: Investor-side liability. Fund managers and investment committee members faced accusations of fiduciary failure and public misrepresentation. Even though they weren’t directly operating FTX, their reputations and legal exposure were on the line.

Consequences: Temasek wrote off its entire $275M investment and cut internal executive pay. Legal defense costs, reputational damage, and tighter scrutiny from regulators and LPs followed.

Mitigation: Tailored D&O insurance can cover legal defense and settlements (excluding proven fraud). Global coverage with U.S. jurisdiction protection is key. Stronger due diligence processes and ongoing monitoring could have further reduced risk.

This case illustrates a clear instance of D&O liability for Asian based private equity and venture capital, especially when investors play an active governance role.

Case Study 2: Board Oversight Failure – The Collapse of Zilingo

What Happened: Zilingo, a Singapore-based fashion startup once valued at $1B, collapsed in 2023 after CEO Ankiti Bose was terminated over financial misconduct. A forensic audit uncovered US$9M in dubious consulting fees, unapproved salary hikes, and mismatched revenue reporting.

D&O Risk: The CEO faced termination and potential legal action. Investor-appointed board members risked reputational damage and potential litigation from creditors and minority shareholders who lost out during liquidation.

Consequences: Over $300M in investor capital was wiped out. Zilingo entered liquidation. Investors like Temasek and Sequoia publicly distanced themselves to preserve credibility.

Mitigation: Better governance could have flagged issues earlier. A robust D&O policy would cover innocent directors for defense costs in harassment or negligence claims. Coverage for insolvency-related lawsuits is especially relevant in wind-down scenarios.

Zilingo’s collapse shows how unchecked executive actions can lead to major D&O liability for Asian based private equity and venture capital, especially in fast-scaling startups.

Actionable Risk Management for PE/VC in Asia.

To protect against D&O liability private equity and venture capital, fund managers must embed governance, monitor continuously, and secure tailored coverage.

1. Embed Governance: Ensure portfolio companies adopt basic internal controls, audits, and board-level accountability.
2. Due Diligence Beyond the Term Sheet: Continue oversight well after investing, with metric verification and periodic audits.
3. Tailor Your D&O Insurance: Make sure policies include:
   1. Outside Directorship Liability (for board seats in portfolio companies)
   2. Global and regulatory investigation coverage
   3. Severability clauses and coverage for legal costs up to final adjudication
4. Crisis Readiness: Have a response plan for internal investigations, PR management, and insurer notifications.

How Continuum Can Help

At Continuum, we specialize in providing tailored D&O and professional risk coverage for private equity and venture capital firms operating in Asia. Our advisory-driven approach ensures:

1. Policies reflect multi-fund and cross-border structures
2. Investor-side and portfolio-level risks are aligned
3. Rapid claims response and legal support when it matters most

We help you protect not just your capital, but your leadership. Contact us today to structure the right protection for your investment team and portfolio.

From venture capital firms to private equity funds and asset managers, the risks are not just reputational. They’re legal, financial, and systemic. Yet, many firms still operate with outdated governance frameworks and insurance programs that fall dangerously short of real-world exposure. To mitigate governance failures at financial institutions, a tailored risk and insurance strategy is essential.

The High Stakes of Governance Missteps

Financial institutions manage billions in assets, investor trust, and systemic responsibility. A single lapse in governance—be it undisclosed conflicts of interest, failed fiduciary oversight, or executive misconduct—can trigger investor lawsuits, regulatory action, and irreversible damage to market credibility.

Recent cases across APAC and beyond have revealed a troubling pattern: governance gaps are often not due to a lack of rules but a failure to anticipate how emerging risks—digital infrastructure, cross-border operations, decentralized investment models—interact with old playbooks.

Common Policy Gaps

1. Directors & Officers (D&O) Insurance Misalignment

   Many financial institutions carry D&O policies that were designed years ago, with little adjustment for today’s realities. Cross-jurisdictional risks, ESG-related litigation, and investor activism demand bespoke protection that reflects the institution’s risk profile—not boilerplate coverage.

2. Professional Indemnity (PI) Exclusions

   Errors in financial advice, misrepresentation, or operational failure can all trigger client lawsuits. Yet many PI policies include narrow definitions or outdated exclusions that fail to reflect the institution’s current service offerings, especially in digital asset or algorithm-based models.

3. Cyber & Operational Risk Blind Spots

   Increasing reliance on cloud infrastructure, third-party vendors, and digital platforms means institutions are only as secure as their weakest link. But few align cyber insurance with their actual tech exposure—leaving critical systems uninsured or underinsured.

4. Lack of Crime & Fidelity Coverage

   Internal fraud, rogue employees, and vendor collusion continue to represent substantial threats—particularly in firms with decentralized teams or rapid deal flow. Crime insurance is often treated as an afterthought despite its relevance in both front-office and back-office operations.

Real-World Example: Internal Governance Failures at Saigon Joint Stock Commercial Bank 

Between 2012 and 2022, Saigon Joint Stock Commercial Bank (SCB) in Vietnam became the epicenter of one of Southeast Asia’s most significant financial scandals, primarily due to internal governance failures. Truong My Lan, a prominent real estate tycoon, clandestinely gained control over SCB through a network of proxies and shell companies. Over this period, she orchestrated the embezzlement of approximately $12.5 billion from the bank by approving over 2,500 fraudulent loans to entities under her control. 

This massive internal fraud was facilitated by a lack of effective oversight within SCB. Key executives and board members failed to implement robust risk management practices, allowing Lan to manipulate the bank’s operations extensively. The bank’s internal audit and compliance mechanisms were either ineffective or complicit, failing to detect or report the irregularities over a decade.

The consequences were severe: SCB faced a liquidity crisis, leading to a loss of customer confidence and significant financial instability. The scandal not only tarnished the bank’s reputation but also raised concerns about the robustness of internal governance frameworks within financial institutions in the region.

This case underscores the critical importance of strong internal governance structures, including independent oversight, effective risk management, and a culture of accountability, to prevent such catastrophic failures.

The Continuum Approach

At Continuum, we work with financial institutions to close these policy gaps—before they become liabilities.

Our approach includes:

• Crime Insurance that aligns with operational infrastructure and addresses insider threats.

• D&O Coverage that reflects current regulatory realities, shareholder activism trends, and global exposures.

• Modernized PI Policies tailored for firms offering complex or cross-border financial services.

• Cyber Insurance that aligns with the use of third-party vendors and decentralised IT operations to address unknown external and threats.

We believe risk management should evolve with innovation. Because in a fast-moving financial landscape, governance isn’t just about compliance—it’s about resilience.

If you think “it won’t happen to us,” you’re exactly who it will happen to. Because in fintech, risk moves just as fast as innovation—and ignoring it isn’t just naive, it’s costly.

Real-World Examples of Fintech Failures

$20M Loss at a Leading Neobank

In 2022, Revolut—one of the world’s most prominent digital banks—suffered a major financial blow after attackers exploited a flaw in its U.S. payment system. Due to differences between U.S. and European transaction protocols, the platform mistakenly issued refunds for declined card payments. Criminal groups quickly took advantage, withdrawing erroneous refunds in cash via ATMs. The scheme went undetected until a partner bank flagged suspicious outflows. While no customer funds were affected, Revolut absorbed a net loss of $20 million—at a time when it was under regulatory scrutiny for a UK banking license. The incident highlighted the hidden costs of internal system weaknesses. (Source: The Hacker News)

Executive Impersonation in Singapore

In 2024, a shocking incident in Singapore exposed the risks of deepfake technology. A finance director was tricked during a Zoom call by fraudsters impersonating his CEO using AI. The scam was so convincing, he nearly wired US$500,000 to the attackers. Fortunately, his last-minute suspicion stopped the transfer, but not before the company launched a full-scale investigation. (Source: ChannelNewsAsia)

User Panic in the Philippines

Later that year, GCash—one of the Philippines’ most popular e-wallets—faced a major trust crisis. Users woke up to find small sums missing from their accounts. Although GCash insisted it was a “technical glitch,” panic spread across social media. The Department of Information and Communications Technology (DICT) launched an investigation, and even the Philippine Senate called for stronger fintech oversight. Regardless of the explanation, public confidence took a serious hit.

$600M Hack on a Crypto Unicorn

In 2022, Vietnam’s Sky Mavis, creator of Axie Infinity, suffered one of the largest crypto hacks in history. Attackers exploited security weaknesses and stole $600 million in digital assets. The company scrambled to patch vulnerabilities, raise emergency funds, and rebuild trust with users. The breach underscored how even the biggest fintech names can face collapse from a single cyber incident.

Collateral Damage: Reputation, Investors, and Regulators

When a founder or top executive gets hacked or impersonated, the consequences ripple far beyond IT headaches. The above cases highlight how quickly things can go wrong. Let’s break down the collateral damage that a cyber-attack on a startup leader can inflict:

1. Reputation Damage

Trust disappears fast. Customers fear their money or data isn’t safe and switch to competitors. Think GCash or Axie Infinity—once trust eroded, recovery was uphill.

2. Investor Doubts

Funding slows or stalls. Investors may demand stricter governance—or walk away entirely. Lawsuits are also on the rise as investors hold leadership accountable.

3. Regulatory Scrutiny

Authorities investigate, impose fines, or pause operations. In Southeast Asia, regulators are becoming more aggressive about fintech security lapses.

For fintech startups, a cyber incident can be fatal, driving away users, scaring off investors, and triggering regulatory crackdowns. Many focus on growth first and overlook security until it’s too late. But more startups are now waking up to the real cost of these risks—often after a close call or seeing others fail.

Why Fintech Risk Management Matters

For fintech founders, cyber resilience isn’t optional—it’s essential. Leaders themselves are high-value targets, and one compromised account can open the floodgates. Practicing basic cyber hygiene—strong passwords, 2FA, and avoiding phishing—can make a big difference. Even seasoned CEOs, like Hootsuite’s founder, have learned this the hard way.

Startups should embed security into their culture early: train employees, update systems, secure cloud infrastructure, and restrict data access. And just as important—have a crisis plan. Know who will respond, how to lock down systems, and how to communicate in a breach scenario.

Finally, insurance is your financial safety net. Even with strong defences, incidents happen. Cyber, D&O, and PI insurance can mean the difference between survival and shutdown. Demand is growing fast in Asia-Pacific for good reason—startups can’t afford to go unprotected.

How Continuum Helps Fintech’s Protect Themselves

The right protection can mean the difference between recovery and collapse after a cyberattack. At Continuum, we help fintech’s build financial resilience through insurance solutions designed for real-world risk.

Fintech risk management is no longer optional — it’s essential. Cyber threats can unravel your startup in a matter of hours, damaging your reputation, scaring off investors, and halting operations. Alarmingly, these threats are increasingly targeting founders and executives.

What Went Wrong:

• Poor Risk Assessment: Heavy reliance on high-risk lenders without adequate safeguards.

• Regulatory Scrutiny: Operating across multiple jurisdictions posed compliance and oversight challenges.

• Investor Distrust: Lack of transparency led to eroded credibility and lost customer loyalty.

At Continuum, we help fintech companies avoid these pitfalls. Our tailored insurance solutions—Directors & Officers (D&O), Professional Indemnity, Cyber, Crime, and Specie Insurance—empower businesses to navigate complex markets with confidence.

From governance protection to cyber resilience, Continuum’s comprehensive packages ensure you stay ahead of risks before they become catastrophic.

Scroll down to explore the lessons learned and how to protect your business from similar setbacks.

Case Study: Investree – A Cautionary Tale of Fraud and Compliance Failure

One real-life example of a fintech setback is the downfall of Investree, a pioneering peer-to-peer lending startup in Indonesia. Founded in 2015, Investree was one of the country’s most established P2P lenders, facilitating around IDR 14 trillion (USD 900 million) in loans by late 2023. However, its success was undermined by a combination of internal governance issues, fraud, and regulatory compliance failures.

In October 2024, Indonesia’s Financial Services Authority (OJK) revoked Investree’s business license, citing multiple failures:

1. Fraud: Allegations of the co-founder diverting company funds to personal accounts, exploiting the platform as a guarantor for unrelated loans.

2. Regulatory Non-Compliance: The company’s non-performing loan (NPL) ratio spiked to 16% – far above the maximum allowed by regulators.

3. Governance Failures: Lack of oversight allowed the CEO to engage in misconduct unchecked.

Investree’s collapse illustrates the dangers of inadequate Fintech Risk Management in Southeast Asia. Companies that do not prioritize compliance, governance, and risk assessment are setting themselves up for failure.

What Went Wrong: Lack of Oversight and Planning

Investree’s collapse illustrates how a combination of leadership misconduct and poor oversight can fatally undermine a fintech startup. First, there was a clear breakdown of internal governance: a CEO was able to siphon funds for personal use without immediate detection. This suggests weak internal controls – for instance, lack of independent board supervision, inadequate auditing, or an overly centralized power structure that allowed one individual to override safeguards.

Second, Investree failed to heed regulatory requirements and warnings. The company’s skyrocketing NPL ratio was a red flag that its lending practices or risk assessments were not sufficient. Regulators had put the company on notice to fix these issues, but the response was too little, too late.

Key Lessons for Fintech Startups in Southeast Asia

To prevent similar incidents, fintech startups should prioritize:

1. 1. Compliance & Governance: Ensure adherence to local regulations from the start. Regular audits and transparent governance frameworks are essential.

   2. Fraud Detection Systems: Implement robust monitoring tools to detect and prevent financial irregularities.

   3. Crisis Management Plans: Prepare for potential crises with risk management measures including insurance coverage.

   4. Stakeholder Engagement: Build relationships with regulators, customers, and investors to maintain credibility.

How Continuum Can Help

At Continuum, we understand that Fintech Startups face a unique set of risks and challenges, particularly in Southeast Asia, where the regulatory environment can be complex and rapidly evolving. Our Fintech Insurance Package is designed to help you mitigate these risks and provide a safety net against unforeseen incidents.

Our Fintech Insurance Package includes:

At Continuum, we believe that effective risk management is a crucial part of growth, not a hindrance to it. With our tailored insurance solutions, fintech startups can focus on scaling their businesses with the confidence that they are protected against the most common and costly risks.

To learn more about how Continuum can help you safeguard your fintech startup, book a free consultation with us today.

In today’s digital education landscape, learning platforms have become the beating heart of international schools and education providers. Whether used for academic instruction, compliance training, or hybrid curriculum delivery, these platforms are mission-critical infrastructure.

But what happens when that infrastructure goes dark?

A single platform outage can snowball into a full-blown crisis—leading not only to reputational damage but also to expensive lawsuits and unexpected liabilities. Learning platform outage liability is no longer just an IT concern—it’s a legal and financial one too.

Business Impact of Learning Platform Outage Liability

It’s not just downtime—it’s disruption across your entire educational operation.

1. Lost revenue from subscription cancellations, SLA breaches, or halted tuition payments
2. Operational gridlock when students, staff, or corporate clients can’t access essential resources
3. Legal exposure from dissatisfied parents, institutions, or employees who rely on uninterrupted service
4. Reputational damage from social media backlash and lost stakeholder confidence

These risks are compounded for international schools and edtech providers that serve cross-border learners with diverse legal obligations.

Real Case: Firefly Learning Platform Outage During COVID-19

In March 2020, UK-based edtech company Firefly Learning, which supports over 480 schools globally, faced a critical platform outage during the early days of COVID-19 lockdowns.

As global school closures pushed thousands of educators and students online, Firefly’s infrastructure buckled under the pressure, resulting in major disruptions to virtual classrooms. Educators were unable to assign homework or access content, and parents flooded forums with complaints.

The incident not only impacted day-to-day learning but also exposed the liability risks edtech providers face when failing to meet service expectations during critical moments.

Where Does Educators Liability Insurance Come In?

When these failures happen, it’s not just about fixing code—it’s about managing fallout. And that’s where Educators Liability Insurance comes in.

A platform outage can trigger claims from multiple directions:

1. Parents and Students may file lawsuits for disruption of education, emotional distress, or failure to deliver promised services.
2. Corporate Clients may invoke breach of contract or non-performance clauses.
3. Employees may raise claims if internal systems affect teaching responsibilities or employment conditions.
4. Regulators may investigate for compliance breaches, especially if data security is compromised during the outage.

How Educators Liability Insurance Protects You

At Continuum, we provide a packaged insurance solution tailored for educational institutions, including edtech companies and international schools. Coverage typically includes:

1. Directors & Officers (D&O) Insurance 
   Shields your leadership from claims of mismanagement, breach of duty, or poor decision-making during crisis handling.
2. Professional Indemnity Insurance 
   Covers service delivery failures, including educational content not being accessible or up to required standards.
3. Employment Practices Liability
   Protects against wrongful termination or discrimination claims if staff are affected by the outage.
4. Cyber Insurance 
   Covers liability if the outage is linked to a breach or cyberattack affecting sensitive student or client data.

Why Schools and EdTech Providers Need It Now More Than Ever

Whether you’re running an international school or a digital learning platform, your risk profile is evolving.

Your exposure now includes:

1. Misconduct during extracurricular activities or study tours
2. Claims of defamation, discrimination, or failure to educate
3. Allegations of improper data handling or lack of security protocols
4. Legal action from regulatory authorities in cross-border operations

Educators Liability Insurance helps institutions navigate the complexity of today’s learning environment—protecting both financial health and leadership integrity.

How Continuum Supports Digital Learning Providers

At Continuum, we work with edtech companies and learning platforms across Southeast Asia to help them prepare for the unexpected. From evaluating coverage gaps to securing tailored D&O and PI insurance, we help our clients protect what matters most—their leadership, their users, and their long-term growth.

Because when your platform goes offline, your entire business could be at risk.

Looking to future-proof your learning platform?

Contact Continuum today for customized insurance solutions tailored to the needs of digital-first education providers.