BANGKOK, THAILAND – Media OutReach – November 30, 2023 – The National Innovation Agency (public body) or NIA, under the Ministry of Higher Education, Science, Research and Innovation, partners with the Digital Economy Promotion Agency (depa) under the Ministry of Digital Economy and Society, Thai Venture Capital Association (TVCA) and Beacon Venture Capital, to host the “NIA x depa VC NIGHT” event. This collaborative effort aims to create a strong investor network and foster investment in Thai startups, preparing them to play an important role in advancing the country’s economic and social landscape through the power of innovation.
Ms. Supamas Isarabhakdi, Minister of Higher Education, Science, Research and Innovation, highlighted the ministry’s commitment to propelling the country’s economy and society through an innovation-driven approach, with a particular focus on startups and young entrepreneurs. The Ministry actively plays a supporting role in integrating new generations into the Thai startup ecosystem and facilitates the expansion of startups’ business operations, thereby promoting their growth. This is achieved through the Alpha program within the Startup Thailand League, in collaboration with over 50 educational institutes across Thailand. The initiative resulted in more than 61 companies being registered among the participating student teams, representing an economic value exceeding 100,000,000 baht.
She also said that currently many universities have created funds dedicated to investing in student startups. Examples include CU Enterprise at Chulalongkorn University, M Venturer at Mahidol University, and Angkaew Holding at Chiang Mai University. These initiatives actively encourage the integration of innovation and cutting-edge technologies into business operations, with a strong commitment to continued expansion and development.
Therefore, hosting today’s “NIA x depa VC NIGHT” event is a commendable starting point, with NIA and depa as the main hosts, along with partner agencies such as the Thai Venture Capital Association ( TVCA) and Beacon Venture Capital. The event aims to strengthen the investor network and boost investment in Thai startups. This initiative highlights the collaboration between government agencies and the private sector, demonstrating their shared commitment to advancing the country’s economic and social systems through the capabilities of innovation and technology entrepreneurs, commonly known as startups. Recognizing that a crucial element in building a robust and globally competitive Thai startup ecosystem is the alignment of goals and concerted efforts across all relevant sectors. It is essential that stakeholders communicate consistently, support each other and work together transparently. The Guidelines for Public-Private Cooperation in Future Market Development, presented today, constitute important and intriguing proposals that the Ministry is committed to advancing and translating into concrete actions in the future.
Dr Krithpaka Boonfueng, Executive Director of the National Innovation Agency (public body) or NIA, stressed that the NIA aspires to serve as a guiding force and facilitator in innovative finance. The objective is to foster the development and support of innovative businesses within specific sectors, generating economic and social impacts, promoting environmental sustainability and improving the overall quality of life of citizens. This objective is to be achieved through the implementation of unconventional financial support mechanisms and the establishment of links with partners in the sector of innovative finance, investment and the innovation market, which, will ultimately stimulate the growth of innovative entrepreneurs.
This year, a complete overhaul of the mechanisms aimed at promoting and supporting SMEs and startups in various dimensions was carried out. A notable improvement is financial support for market expansion and investment opportunities. This includes the introduction of a new grant funding mechanism known as “enterprise co-financing”, developed in collaboration with the Technology and Innovation Enterprise Development Fund (TED Fund). Additionally, the focus is on activities such as Invest Startup Thailand, strategically designed to drive increased investment in startups in the country. For example, there is a dedicated effort to cultivate knowledge about investing in startups, commonly referred to as the “Angel Investor” initiative, the development of investor networks, encompassing both venture capital (VC) and equity -enterprise risk (CVC), as well as business matching activities and the provision of a platform for startups to present their business plans to potential investors. NIA views these strategic operations as crucial tools that will propel startups towards sustainable growth in the global market.
To assist. Teacher. Dr. Nuttapon Nimmanphatcharin, President and CEO of the Digital Economy Promotion Agency, underlined depa’s commitment to fostering industrial development and digital innovation. The agency is dedicated to promoting digital startups through various mechanisms. The strategic plan includes strengthening the competitiveness of digital startups, with a particular focus on creating innovative financing promotion mechanisms, including co-investment initiatives. Additionally, the depa aims to facilitate the creation of a fund dedicated to elevating digital startups globally.
Additionally, a collaborative effort is underway with relevant agencies to attract highly qualified individuals to work in Thailand, facilitated by the Global Digital Talent Visa mechanism. In addition, a concerted initiative with the Board of Investment (BOI) has been put in place to create a market for digital startups. This includes the implementation of measures to grant a total exemption from corporate tax, up to 100% of the investment, without limit of amount, when purchasing products or services from startups digital services recorded in the digital services account. These strategic measures are designed to foster the growth of digital startups, positioning Thailand as a key hub for the development of the digital startup sector and investments in the region.
Mr. Sarun Sutuntivorakoon, President of the Thai Venture Capital Association (TVCA), commented on the current investment landscape in Thailand. Currently, there are a limited number of unicorns in Thailand, leading to a shortage of business experts and a lack of supporting infrastructure. This contributes to the lack of reputation of startups and the limited number of venture capital participants. This situation highlights the problem of the low number of emerging unicorns. On the other hand, the success cycle in foreign countries involves a higher number of successful startups. This success attracts experts who collaborate to build the appropriate infrastructure. In turn, this instills confidence in investors, making them eager to invest, thereby facilitating the continued emergence of new startups.
Therefore, collaboration with government entities such as NIA and Depa is not only necessary, but also essential to overcome challenges and drive success. This collaboration rests on two essential pillars: first, a focus on equity through government financial support mechanisms, as evidenced by the success stories of countries like Israel and Singapore that have propelled their countries from obscurity to prosperity , becoming centers of technology and innovation. Second, it is essential to fundamentally focus on education, involving preparing children for the future by instilling them with business knowledge and experience. This approach ensures that graduates are equipped to immediately create their own startup.
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