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Thailand’s startups to benefit from new BOI fund
The Board of Investment of Thailand (BOI) has launched a new fund to provide financial support of 20 million to 50 million baht to Thai startups in targeted industries, matching the amount they have received from venture capital funds.
Key Takeaways
- The Board of Investment of Thailand (BOI) has launched a new fund to help local startups expand.
- Therdsteerasukdi explained that the BOI will provide funding of up to 50 million baht to match the amounts granted by venture capital funds.
- To apply for funding, companies must be incorporated under Thai law and have at least 51% of their shareholding under Thai ownership
The initiative will seek to match the subsidy granted by the venture capital fund of up to 50 million baht per company. To apply for funding, companies must be incorporated under Thai law and have at least 51% of their shareholding under Thai ownership, and the founder(s) must hold at least 60% of shares.
The Secretary General of the BOI, Narit Therdsteerasukdi, explained that the fund was approved by the Committee on Policies for Improving National Competitiveness for Specific Industries.
The measure aims to help the expansion of new Thai companies in specific industries that are in the fundraising stages.
Therdsteerasukdi added that the BOI will provide funding of up to 50 million baht to match the amounts granted by venture capital funds.
The fund will seek to help various startups expand by helping them compete internationally within the technological world, with the ultimate goal of helping them become unicorns with a valuation of US$1 billion.
Startup Eligibility Criteria
- Startups must be set up under Thai laws, with at least 51% of shares held by Thai nationals and the founder(s) holding at least 60% of shares.
- Startups must have received at least 15 million baht from a venture capital fund listed with the National Innovation Agency.
- Eligible startups must be in targeted industries such as digital, electronics, modern automobile, agriculture, food, medicine, biotechnology, and robotics.
- Startups must present a clear business plan focusing on international expansion, including international fundraising and overseas market penetration.
BOI Support
- The BOI will provide financial support of 20 million to 50 million baht to match the amount the startup has received from the venture capital fund.
- Besides financial support, eligible startups will also enjoy tax benefits under BOI’s policies and benefits for hiring foreign experts, including visa and work permit facilitation.
- The funding and support are aimed at enhancing the competitiveness of startups, enabling them to advance technology development, create new products and services, and expand into the global market, increasing their chances of becoming unicorns.
Objectives and Significance
- The initiative is an important step in helping Thailand become a regional innovation hub. [[10]]
- It aims to support Thai startups in their business expansion and competition at the international level, as well as their potential to become unicorns. [[11]]
The startup ecosystem development in Thailand
The startup industry in Thailand has been experiencing significant growth, particularly as we move through 2024. This growth is driven by a combination of government initiatives, a vibrant talent pool, and increasing investment from both domestic and international sources.
Thailand’s strategic location in Southeast Asia, coupled with its relatively low cost of living and doing business, makes it an attractive destination for startups. The country is home to a vibrant talent pool, with skilled professionals available at a fraction of the cost compared to Europe and the USA.
The Thai startup ecosystem is also benefiting from increased venture capital investment. The number of startup funding deals has been on the rise, with significant investments flowing into sectors such as fintech, e-commerce, and health tech. This influx of capital is helping startups scale their operations and innovate, contributing to the overall growth of the industry.
Moreover, Thailand’s focus on digitalization and technological advancement is playing a crucial role in this growth. The national economic plan for digitalization is pushing more growth toward the tech startup scene, providing the necessary infrastructure and support for startups to thrive.
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