The Thai startup ecosystem is seeking a boast. The Board of Investment of Thailand (BOI) lately launched a new fund to enhance the competitiveness of local startups. It is basically aimed to match the investments made by venture capital funds. It is said to offer up to 50 million baht for each company and simultaneously provide a much-needed boost to startups in targeted industries.
The fund was approved last month by the National Competitiveness Enhancement for Targeted Industries Policies Committee chaired by Finance Minister Pichai Chunhavajira. It is learned to provide financial support to startups ranging from 20 million to 50 million baht.
BOI Secretary-General Narit Therdsteerasukdi said that the initiative mainly focuses in the early stages of startups and specifically to those which are at the pre-Series A to Series A levels. The primary intention of the initiative is to aid the companies in their business expansion efforts as well as to help them in becoming internationally competitive. The ultimate goal is to assist them in reaching to the unicorn status.
The required eligibility is that the startups should be established under Thai laws and at least 51% of its shares should be held by Thai nationals. Moreover, the founders should hold at least 60% of the shares. Moreover, the startups should also have secured at least 15 million baht from a venture capital fund that is listed with the National Innovation Agency. The targeted industries for the initiative include digital technology, electronics, modern automobiles, agriculture, food, medicine, biotechnology and robotics.
Eligible startups will also benefit from tax incentives under the policies of BOI and receive assistance with visa and work permits for foreign experts they hire. Narit emphasized on the importance of funding and human resources in the growth of the startups.
