The Thailand Tech Startup Association (TTSA) is calling for the government to provide a variety of tax and investment incentives and increase access to alternative financial sources to help new and young tech entrepreneurs.
"Tech start-ups will play an important role in driving growth in the digital economy and having a positive effect on all aspects of the economy through innovative services, e-commerce, digital content, big data and the Internet of Things," chairman Patai Padungtin said yesterday.
The number of tech start-ups reached 500 in 2014, but with only 5% successfully raising capital worth a combined US$80 million.
Mr Patai said young entrepreneurs with agility and proper funding could create a wave of disruption that would let companies drive the country's economic growth and develop a digital-based economy.
The TTSA recently submitted a white paper to the government asking for state assistance in three areas: tax privileges, eased investment regulations and funding assistance for tech start-ups.
Mr Patai said a two-time tax reduction for those who use products and services from Thai tech start-ups would help local entrepreneurs.
A tax break for angel investors who invest in start-up tech companies would also spur direct investment from individuals in start-ups.
Moreover, liquidation preference for investors in bankrupt start-ups would protect venture capitalists from losses and ensure that they got back their initial investment ahead of other parties.
Providing alternative funding for start-ups would be an important step to improving access to finance. The existing privileges provided by the Board of Investment lack provisions for angel investment.
Mr Patai urged the government to craft a national tech start-up agenda similar to Singapore's.
Collaborations with international incubators such as Silicon Valley could also boost local start-ups.
Mr Patai said an industrial zone for tech start-ups should be set up, with tax breaks for firms that locate there.