The Science and Technology Ministry will inject 2.5 billion baht in tech and innovation funds to boost the tech startup industry.
Atchaka: Startups need to look overseas
The funding is part of the government's policy of helping industry make the Thailand 4.0 transition.
"Startups are an important pillar as they are the new economic warriors creating value and shaping an innovation-based economy for the country, helping Thailand escape the middle income trap," Atchaka Sibunruang, the science and technology minister, said yesterday at "Startup Thailand 2017: Scale up Asia", held at Queen Sirikit National Convention Centre.
"We will keep on supporting local startups, helping them to grow faster and expand to overseas markets," she said, adding that making Thailand's startup ecosystem attractive for Asia and Indochina is one of the ministry's missions.
Of the 2.5 billion baht in funds, the first batch of 772 million will be allocated over the next several months.
"A committee will be set up to take care of the budget, defining qualifications and criteria for investment in startups," said Mrs Atchaka.
Last year, the government vetted 8,000 proposals from startups, opting to give support in various forms to 700 firms employing 7,500 people. That number is expected to increase to 1,500 startups in 2017.
Mrs Atchaka said in 2016, US$86 million (2.93 billion baht) in funding flowed into startups from various sources, growing 150% from 2015.
At present, some $300 million in corporate venture capital is ready to be invested in startups in Thailand.
Last year, the Startup Thailand 2016 event attracted some 4 billion baht of investment for business matching.
The industry is still challenged as only 5% of startups are successful, she said, adding that most Thai startups are still focused on the domestic market.
"This should encourage them to expand overseas to scale up their market opportunities," said Mrs Atchaka.
The government is also providing incentives to startups, offering five- to eight-year corporate tax waivers for co-working space businesses, as well as a 10-year capital gains tax exemption to draw venture capital investment.
The ministry is also working with 28 universities to run training courses for startups and entrepreneurs, with some 3,000 students set to participate this year.
There will be a total of 27 startup innovation districts, some invested in by the government and some by private companies. One, backed by a 230-million-baht investment from Chulalongkorn University, will be located at Siam Square.
The government is now considering changes to the Thailand Civil and Commercial Code to allow startup employees to hold stakes in their companies.
"We are also considering having startup visas for foreign workers in special areas such as software code development," said Mrs Atchaka.
There will be international collaboration in startup training and business matching as Thailand is now working with 20 countries to that end.