Major venture capitalists are eyeing huge investment opportunities in startups with the focus on artificial intelligence (AI), transformative digital healthcare, and the emerging field of so-called pink technology.
Thailand's strong healthcare, agriculture and tourism industries and local companies' continued investment in innovations are among the factors making the country a strong launchpad of startups, according to venture capitalists.
Major firms are fuelling the innovation by investing in technology, generating a thriving innovation ecosystem with real-world use cases and high demand for cutting-edge solutions.
BRIGHT FUTURE FOR AI
Andrew Ng, managing general partner of AI Fund, a globally-renowned AI pioneer, said he sees opportunities for a bright AI future in Thailand, particularly for key applications for tourism, healthcare and agriculture sectors.
"I strongly believe Thailand is a great place for AI applications by leveraging the country's unique strengths," he added.
Moreover, the country has AI and startup ecosystem momentum from the movement of developers and projects from large companies, Mr Ng added.
AI Fund has teamed up with KX Venture Capital (KXVC) to identify new startup opportunities, aiming to build the startups to serve Thailand and the global market.
KXVC is the venture capital arm of Kasikorn Business-Technology Group (KBTG).
Mr Ng added that the fund would like to work with multiple types of businesses to explore industry pain-points that can be solved by AI.
To support the startups, the fund will start with an initial idea, followed by market and technical validation to assess the project feasibility.
Then the startups will focus on recruiting a strong chief executive to lead the organisations.
After deep customer engagement to refine the concept, they will build a product prototype to test its potential. If the prototype shows promise, the fund will inject capital to fuel the startups' pre-seed growth.
KBTG group chairman, Ruangroj Poonpol, said the world has reached the peak of AI transformation as AI is now pervasive in everyday life, with businesses actively adopting this technology.
According to Mr Ruangroj, 2030 is predicted to be a pivotal year for AI-driven economic revolution. Domain-specific AI, also known as vertical AI, is poised to dominate across industries.
The economic impact of AI will be monumental, contributing an estimated US$15.7 trillion to global GDP. Asia is expected to experience significant growth, with a potential $1-trillion boost to its GDP.
Mr Ruangroj said Thailand is well-positioned to become a leader in generative AI (GenAI). Both the public and private sectors in Thailand demonstrate a strong interest in and early adoption of GenAI technologies, creating a unique opportunity for local companies.
BOOMING HEALTH TECH
"The healthcare industry, with its global worth exceeding $9 trillion, stands as a colossal market poised for even greater significance in the years to come," said Mr Ruangroj, who is also chairman of Disrupt Health Impact Fund.
The first group of co-investment partners in Disrupt Health Impact Fund includes Digital Health Ventures (DHV), which is the innovation and venture arm of Samitivej Hospital Group; Thana Asset Co Ltd; Saha Pathana Inter-Holding Public Co Ltd; and Sripatum University.
Thailand's healthcare sector is experiencing a surge of innovation, through the use of AI, deep tech, and bio tech, he added.
These technologies revolutionise healthcare by making it smarter and more efficient, reimagining humans' biological limitations, and solving prevalent and complex issues with scientific advancement, he said.
Mr Ruangroj said global health tech has high growth, particularly with people aged over 65 years old.
"Mega trends are reshaping healthcare, which will bring tremendously lucrative opportunities in the next decade," he added.
According to Mr Ruangroj, the global digital health sector is predicted to reach $275 billion by 2031, while the preventive care sector is expected to reach $415 billion in the same period.
The self-care sector is expected to reach $26.5 billion by 2031, while the holistic wellness sector is expected to expand to $8.47 trillion by 2027.
Mr Ruangroj said the health tech sector also has high entry barriers for newcomers.
He cited CB Insights as saying that global digital health tech funding continued to grow 48% on a quarterly basis in the first quarter of this year, while funding in other industries, except AI, slowed down.
The growth of global health tech funding was supported by an increasing number of fundraising rounds worth over $100 million, which were largely directed at biotech startups and other players leveraging AI.
Jantanarak Tuekaew, managing director of Disrupt Technology Venture Co, said Thailand is well positioned as an Asian medical hub, thanks to its strong health infrastructure of 1,300 public and private hospitals and affordable fees, which are 50-70% lower than in Western countries.
She added that her venture will invest in revenue-generating startups in pre-series A to B.
"We invest in the US, EU, Israel and Asia-Pacific, with a ticket size of $500,000-2 million and target investment in 10-15 companies in the healthcare field, both domestically and internationally, within the next three to five years," said Ms Jantanarak.
PROFITABILITY IS KEY
"Investment in startups slowed down due to the challenging world economy in the past 2-3 years," Sam Tansakul, managing director of Krungsri Finnovate, told the Bangkok Post.
Venture capital firms will look for profitable startups. In Thailand, most of the fundraising by local startups has taken place at the series A round, not at higher levels, Mr Sam added.
Finnovate has established a new fund to invest in small startups in pre-series A. The new fund, Finno Efra Fund, worth 1.3 billion baht, was set up in partnership with EfraStructure and Krungsri Finnovate.
Apart from providing money, the fund will offer accelerator programmes, mentors, and knowledge sharing to help early startups expand, he added.
Mr Sam said that startups in marketing technology, or MarTech, have grown as they create new tools for customers to optimise marketing efforts and reduce costs.
The other promising startups are those offering AI-powered services, firms in the environmental, social and governance field, and those with industrial technology for manufacturing.
Mr Sam also sees opportunities in the mobility area, particularly in the two-wheeled motorbike business. The segment offers great opportunities for Thais as they can import components for assembly. He said Thais can build faster-speed bikes with higher capacities than those of rivals.
He added that IT outsourcing service is also an attractive business as it can address the shortage of skilled resources amid demand for digital transformation. One potential area of the service is application testing.
He said that fintech startups could not compete with banks, but they still have good opportunities in wealth management and payment business.
Korawad Chearavanont, executive chairman and founder of AI developer firm Amity Solutions, said Thailand needs talent to refine and train GenAI agents. By fostering the development of the right skillsets, Thailand can play a significant role in the future of AI application development.
Amity Solutions and parent company Amity Corporation have just successfully raised $60 million in a Series C funding round.
UNLOCKING THE PINK ECONOMY
Thailand could become a "pinktech" hub, capitalising on untapped business opportunities stemming from the LGBTQ community, according to Canvas Ventures Co Ltd, a multi-family venture capital office.
Pinktech refers to technology and products tailored to address the specific needs and interests of members of the LGBTQIA2S+ community.
LGBTQIA2S+ stands for lesbian, gay, bisexual, transgender and trans, queer and questioning, intersex, asexual or agender, and two-spirit.
"Thailand has one of the largest LGBTQIA2S+ populations in Southeast Asia at around 7 million," Tanachai Kulsomboonsin, co-founder of Canvas Ventures, told the Bangkok Post.
"Thailand's Pink Economy is not just a niche -- it's a burgeoning market estimated to be worth billions of baht," said Mr Tanachai.
The end of the "startup winter" is here, but many pinktech ventures are still focused on ideation, not monetisation. This highlights a need for a shift in mindset: from passion-driven projects to sustainable businesses.
Mr Tanachai cited the survey conducted by Thammasat AI Centre and Canvas Ventures International with 105 respondents from investors and startups, private and public. The survey found that 47.4% of the respondents identify LGBTQIA2S+ as a substantial and eager consumer base.
Meanwhile, 80% of local pinktech startups are in their early stages, brimming with ideas but needing mentorship and funding to grow.
"Investors can play a crucial role by providing guidance on financial modelling and market validation," said Mr Tanachai.
The unmet needs of this community represent a goldmine for innovative pinktech solutions.
Although investors are buzzing with interest in pinktech, a staggering 88.9% have not made the leap yet, according to the survey.
Thailand's government is open to supporting pinktech, but policy specifics are lacking, such as tax incentives for pinktech startups, funding for research, and streamlined licensing processes, the survey says.
While corporate Thailand is increasingly embracing LGBTQIA2S+ inclusion, deeper engagement is needed. "It's not just about rainbow logos; it's about understanding the unique needs and challenges of the community," said Mr Tanachai.
"This could lead to innovative products, services, and workplace policies that benefit both businesses and the LGBTQIA2S+ community."