Thailand has an opportunity when it comes to tech startups by developing new models such as venture building programmes to connect aspiring entrepreneurs with skilled technologists.
Strengthening a collaborative rather than a competitive startup ecosystem is essential to drive development of new startups in the country, said Warin Ratchananusorn, director of the Digital Startup Institute.
The institute operates under the Digital Economy Promotion Agency (depa).
He said Thai digital startups have continued to face significant challenges, including limited access to funding, a shortage of in-depth mentorship, restricted international networks, and inflexible government mechanisms.
Many traditional businesses are still unable to fully adopt digital technologies, resulting in fewer opportunities for local startups to grow and conduct real-world testing with them, said Mr Warin.
There are around 400 active startups in Thailand, of which 200 have gained depa's funding support so far of around 800 million baht.
He said Thailand has strong potential in the areas of human resources, technological readiness, and growing cross-sector collaboration.
"Thailand has the capacity to build a robust digital startup ecosystem," said Mr Warin.
The number of new startups is declining, especially those in the idea stage, due to a lack of proper ecosystem support such as funding sources, out-of-date regulations, and new models of incubating programmes connected with deep tech, he said.
Depa has provided funding to local startups covering three stages of development: the idea, the early stage and the growth stage.
"This year we're eager to seek specific idea startups applying for our funding," said Mr Warin.
According to StartupBlink's Global Startup Ecosystem Index 2024, Thailand dropped two spots to rank 54th globally in 2024, falling from 50th in 2020 and 2021, 53rd in 2022, and 52nd in 2023, respectively.
In terms of the Asia-Pacific rankings, Thailand's startup ecosystem remained in 11th place from 2021 through 2024.
Thailand was ranked 17th globally in 2024 in terms of total impact of global startup events on the ecosystem.
The index also shows Thailand's startup ecosystem is heavily concentrated in Bangkok.
The funding amount for startups in Thailand was US$400 million in 2020, $600 million in 2021, $1.3 billion in 2022 and $1 billion in 2023.
Funding for startups in Southeast Asia tallied $8.5 billion in 2020, $23.5 billion in 2021, $16.5 billion in 2022, $8 billion in 2023 and $4.5 billion in 2024.