InnoSpace Thailand Co, a joint venture between the public and private sectors, is expected to raise capital of 640 million baht in its first stage of funding, higher than the expected 500 million, as there are 10 agencies taking part as startup incubators, says the Industrial Promotion Department.
InnoSpace Thailand, in partnership with Cyberport Hong Kong and the Israeli Economic and Trade Mission, is the startup incubator.
The incubator is supported by the 10 local agencies, including financial institutions, energy companies, industrial conglomerates and state departments.
"They [the agencies] will earmark the first capital funds in InnoSpace Thailand and act as shareholders," said Kobchai Sungsitthisawad, the department's director-general. "The 10 agencies are expected to sign the shareholder agreements in July, while the first-year operations of InnoSpace Thailand will not focus on gaining profits."
The Industry Ministry said earlier that the project's host was also required to settle on establishing InnoSpace before the next government is formed.
Initiated in January 2019, InnoSpace's many partners include PTT, Siam Cement Group, CP Group, ThaiBev, Bangkok Bank, the Electricity Generating Authority of Thailand, Bangkok Dusit Medical Services, Siam Commercial Bank, Thai Union, Sahapat Group and SME Development Bank.
Tevin Vongvanich, InnoSpace's chairman of the advisory committee, said the venture firm aims to create 50 startups in 2019. They will be provided business know-how programmes and financial tools in order to encourage them to enter the global market.
"We have three local startups in the digital tech sector," Mr Tevin said. "The ministry will promote and support them as the new generation to connect with global trends and technology."
In a related development, 30 agencies from companies, state enterprises and leading universities signed a memorandum of understanding to take part in an enhancement of the network and ecosystem for startups.
Both the public and private sectors have attempted to establish this plan but failed for several years.
The ecosystem for startups will run from creation, incubation, coaching and business matching to commercial sales.
Mr Tevin said the ecosystem for startups previously lacked synergy with business networks.
During fundraising and preparation of shareholder agreements, InnoSpace Thailand will seek executives and working staff, he said.