# Thailand’s startups to benefit from new BOI fund

- Link: https://www.thailand-business-news.com/companies/154732-thailands-startups-to-benefit-from-new-boi-fund
- Published: 2024-08-06T10:28:06+07:00
- Author: J. Allan

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.

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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.

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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.