‘Historic’ billion baht fund aims to fuse tech startups with SMEs
The Federation of Thai Industries is establishing a 1 billion baht fund with the Thailand Science Research and Innovation agency to provide funding for tech startups to work with small and medium-sized enterprises (SMEs), federation president Kriengkrai Thiennukul told a press conference on Friday.
Called the Innovation One Fund, it is being described as Thailand’s first fund to focus on matching tech startups with small and SMEs in order to strengthen their competitiveness and, ultimately, the overall economy.
The Innovation One Fund was created because SMEs have difficulties accessing money, technology and the innovative resources they require to thrive in the digital economy, federation president Kriengkrai said.
The fund will also help Thai startups scale up their operations, he said, adding that it will focus on the next generation of technology startups capable of providing innovative solutions to SMEs.
"Three criteria are used to determine which tech startups will be funded. For starters, their innovations have to meet the needs of SMEs. Second, they have to have a feasible business plan. Third, they have to be able to show they can turn a profit,” Kriengkrai said.
He said the federation has an experienced team to verify candidates for access to the fund.
The Innovation One Fund is primarily funded by TSRI, a public sector organisation that is looking for a new cooperative model to incubate Thai startups and help them flourish. TSRI also supports the development of Thailand’s manufacturing ecosystem.
TSRI director Pattamawadee Pochanukul described the new fund as “historic”, saying the government is providing new supportive measures that allow the private sector to take the lead.
The government will be a facilitator in terms of money, markets, and regulations, she said.
"The fund's initial investment of 1 billion baht will help both tech startups and researchers improve their intelligent innovations in order to truly benefit the country's economy and social well-being. It is the bridge that allows them to cross the dead valley. It will also convert our SMEs into innovation-driven enterprises," she explained.
Anek Laothamatas, Minister of Higher Education, Science, Research and Innovation, said the fund highlights the government's effort to use research and development as a main engine to drive Thailand's economy and society.
Thailand's private sector has exponentially improved the country's economy, proving that the government should listen to entrepreneurs in order to catch up to transformations in the global economy, Anek said.
The government “must be a close and strong partner for all levels of business”, he said.
The Higher Education, Science, Research, and Innovation Ministry should provide academic know-how and provide international technology to the private sector, particularly SMEs, Anek said.
The federation said the first phase of the Innovation One Fund will last three years.
This year, it plans to invest in at least five tech startups. The fund has already signed a partnership with Innospace and CU Enterprise, two of Thailand's leading venture capital firms, to assist the tech startup.
