• Recent layoffs, losses, and shutdowns at three Temasek-backed startups signal cracks.
• While well-funded, the turmoil puts under scrutiny Temasek’s claim.
• Centralized decisions amid unproven ideas heighten risks.
Summary
A recent wave of staff departures, financial losses, and shutdowns across three startups backed by Temasek point to growing pains with the state investment firm’s venture-building efforts.
Tumultuous Period
Public records and insider accounts analysis show Temasek-funded startups GoodWorker, Trustana, and Affinidi have weathered a tumultuous period.
GoodWorker shut down entirely following steep layoffs, while Trustana and Affinidi underwent restructuring and voluntary separation schemes that cut personnel by over 40% and 30%, respectively.
Portfolio struggling
Parent firm LemmaTree has also seen its staffing sliced in half. The talent bleed follows combined losses surpassing $20 million across the firms amid struggles to achieve product-market fit.
Trustana and Affinidi specifically pivoted business models and wrote off nearly $2 million in inventory and intangible assets.
Is venture building the answer?
While the startups have ample funding to tap from Temasek’s $306 million investment so far, analysts note the restructuring puts its venture-building strategy under scrutiny.
Temasek maintains the method delivers superior results compared to traditional startup funding.
However, the turmoil points to potential internal pitfalls in incubating and scaling ventures.
With intensive hands-on support yet centralized decision-making, charter changes and executive turnover can profoundly destabilize operations. Backing largely unproven ideas heightens risks should momentum falter.
Still, given Temasek’s deep resources and 12 other startups in development, the investor likely views a few flameouts as acceptable breakage toward outsized unicorn rewards from any runaway successes.
Temasek-backed startups flounder, testing venture building
