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January 29, 2025

Overview of Thai Startup Growth and Opportunities in 2024

In 2024, Thai startups were ranked 54th globally and 4th in Southeast Asia, demonstrating good development potential. This reflects the capabilities of Thai entrepreneurs, government support, and collaboration across industries working to build an ecosystem that drives startup growth within the country.


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Thailand has three cities Bangkok, Chiang Mai, and Phuket ranked among the top 1,000 global startup ecosystems and is considered one of the best countries in Southeast Asia to launch a new business. Researchers from StartupBlink believe Thailand has the potential to be a compelling startup hub, although the ecosystem is still in its early stages.


Overview of the Thai Startup Ecosystem

Over the past 40 years, Thailand has developed its economy through reforms and social innovation. While recognized as a world-class tourist destination, the impact of COVID-19 has spurred the government to promote the startup ecosystem for future economic stability. Though still trailing neighbors like Singapore and Malaysia, these efforts represent significant steps in unlocking the potential of the domestic ecosystem.

Furthermore, Thailand attracts “Digital Nomads,” professionals who can work anytime, anywhere with internet access. Bangkok and Chiang Mai are popular hubs. With innovative new policies, the government aims to leverage this group's knowledge and skills, fostering collaboration between local and international entrepreneurs to develop interconnected projects benefiting Thai workers.


Progress in Creating Domestic Unicorns

Thailand boasts good infrastructure, a moderate cost of living, and reasonable business expenses. It has also seen successful startups become unicorns, valued at over $1 billion USD, including:

  • Line Man Wongnai

  • Flash Express

  • Ascend Money

The success of these unicorns not only demonstrates the potential of Thai startups in the global market, but also inspires a new generation of entrepreneurs. It also attracts both domestic and international investors to the Thai market, further strengthening the country's startup ecosystem.

 

 

Supportive Government Policies

 

The Thai government actively promotes startups through various policies, such as:

  • Tax incentives: A 10-year corporate income tax exemption for investments in startups, incentivizing investment in the technology sector.

  • Visa programs: Facilitating the entry of foreign experts into Thailand:

    • Smart Visa: Attracts foreign tech experts and startup founders.

    • Long-Term Resident Visa: Offers comprehensive benefits, including tax breaks, to attract high-potential individuals for long-term investment and residency.

    • Elite Visa: For long-term tourism.

  • Infrastructure development: 

    • Projects like U-Tapao Airport

    • High-speed rail

    • The Purple Line Project

These mass transit systems support the Thailand 4.0 vision and the Eastern Economic Corridor (EEC) as a hub for advanced technological innovation.

 

 

Investment from CVCs and Regional VCs

 

Thai startups benefit from support by domestic Corporate Venture Capitals (CVCs) and are attracting increasing investment from regional Venture Capitals (VCs). This strengthens the ecosystem and broadens access to resources and networks for entrepreneurs.

 

Currently, Thai startups receive support from domestic CVCs like:

  • SCB 10X

  • Beacon Venture Capital

  • AddVentures by SCG

  • Invent

  • True Incube

  • Singha Ventures

They are also attracting investment from prominent regional VCs such as:

  • Golden Gate Ventures

  • Openspace Ventures

  • Quona Capital

  • Vertex Ventures

These investments provide Thai startups with increased resources and international networks, enhancing their global competitiveness.

 

 

Overview of the Global Investment Market and Business Deals in 2024

 

In 2024, the global investment market showed continuous growth. This was compared with the growth of major stock market indices such as the FTSE 100, S&P 500, Nikkei 225, and Nasdaq. Nasdaq experienced the highest growth at 45.3%, while the S&P 500 and Nikkei 225 grew by 41.6% and 26.9%, respectively.

 

Growth of Business Deals: From January to September 2024, deal growth for small, mid-sized, and large businesses stood at 9.7%, 9.6%, and 8.7% respectively.

 

Average Deal Value: The average deal size showed a downward trend from 2021-2023 but recovered in 2024, with an average value of $9 million.

 

Number of Deals and Fundraising: There were a total of 266 deals in 2024, compared to 262 deals in 2023, with the total fundraising consistent with market growth.

 

Analysis of this data points towards a steady recovery and growth in the economic system and investment market in 2024. This reflects investor confidence and the adaptability of businesses on a global scale.

 

 

Capital Market Trends

  • The global public capital market continued to grow, based on the aforementioned data, especially in 2024. This was fueled by the Fed's first interest rate cut since 2020 and the recovery of diverse profit growth after a sluggish period in the post-pandemic era. However, the growth of technology stocks began to slow down compared to the past two years. In Q3 2024, technology stocks yielded a return of 2.35% but still saw an increase of 51% for the year.

  • Meanwhile, Venture Capital fundraising continued to decline due to a lack of exits and reduced late-stage investment. Despite these limitations, excitement surrounding Generative AI became a key driver, accounting for one-third of all VC funding directed towards AI startups.

  • During 2024, exits, such as initial public offerings (IPOs) or mergers and acquisitions (M&A), remained low compared to the period before 2021. In 2024, only a few prominent IPOs were recorded, such as Reddit, Astera Labs, and Tempus AI, along with a total of 230 IPOs (a 28% decrease compared to the previous year). Mergers and acquisitions totaled 6,252 deals, a slight decrease of only 0.4%. However, the IPO outlook for 2025 looks brighter, with prominent names like Klarna, Revolut, and Databricks preparing to enter the stock market.

  • As the value of companies in the public capital market (stock market) tends to increase, it might lead to an increase in the value of private companies as well, especially in attractive industries like AI, which currently holds a high value due to market demand and substantial investment.

Growth of Funding and Number of Deals in Thailand

 

Fundraising in Thailand experienced continuous growth from 2018-2023, reaching a peak in 2022 with a fundraising value of nearly 500 million USD. The number of deals in Thailand reflects the increasing growth of the Startup Ecosystem, especially in the prominent E-commerce and Fintech industries.

 

Role of CVC and VC:

  • Investment in Thailand continues to be supported by domestic CVC (Corporate Venture Capital), such as banks and large companies that invest in startups to accelerate growth in their respective industries.

  • Regional VC investors are also starting to play a crucial role, enabling Thai startups to attract higher levels of funding.

 

Key Deals in 2024:

In 2024, several companies attracted substantial investment, such as Ascend Money, Amity, Freshket, HD, and Cryptomind, reflecting the attractiveness of various industries.

 

 

Thai Capital Market Trends:

  • Fundraising in Fintech and E-commerce remains prominent, particularly for high-potential companies such as Opn and Pomelo, which have attracted significant investments.


Conclusion

Thailand’s startup ecosystem is changing for the better with collaboration between investors, government, the private sector, and entrepreneurs. By maintaining this progress and supporting innovative growth, Thailand has the opportunity to become one of the region’s leading technology hubs in the future.



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Source:

https://www.startupblink.com/startup-ecosystem/thailand?page=1
https://www.bangkokpost.com/business/general/2889297/researcher-offers-pointers-on-shaping-a-startup-nation
https://www.morningstar.com/markets/13-charts-stocks-bonds-q3-roller-coaster-rallies https://foundershield.com/blog/tech-ipos-2024/?utm_source https://www.cmri.or.th/uploads/images/1680512022CapSnap-7_3_Apr_2023.pdf?utm_source 

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