Numbers speak: Thailand experiences 29 times growth of tech investments in past 4 years
The latest Techsauce report reveals why Thailand is set to rival Indonesia and Singapore in terms of tech investment
Thai digital industry seems to be on the roll lately, with the government announcing national e-payment system and funding to build its local startup ecosystem.
Despite several shortcomings, a recent report by resource portal for tech and business news Techsauce highlighted the progress the country is making in tech investments — and this should spur regional investors into looking at this market, instead of sticking to Singapore or Indonesia.
“There are so many hidden unicorns in Thailand and undervalued ventures that deserve funding in Thailand, but in Southeast Asia, investors have traditionally looked first at Indonesia and Singapore. Our latest research shows that Thailand is beginning to genuinely rival them,” said Techsauce Co-Founder Amarit Charoenphan in a written statement.
He also mentioned Thailand’s solid infrastructure, business stability and low operating costs as the factors that make the country “a perfect storm for startups.”
The report was made based on data collected by the team since 2012. The report follows the second annual Techsauce Summit set to happen on July 23-24.
e27 compiled key findings from the report for your reading convenience.
The most intriguing findings from the report is the number of funded startups in Thailand, which had risen rapidly in the last four years. When the research began in 2012, there were only three funded startups, with only one VC & corporation and two angel investors active in the country.
Enter 2015, the numbers rose to 59 funded startups, 56 VC & corporation and 30 angel investors. The year also saw six exits; in 2012, there were none.
As of June 2016, the numbers have risen to 72 funded startups, 60 VC & corporation, 30 angel investors, and eight exits.
The total disclosed funding in 2016 reached US$108 million (with the record held by Orami at US$15 million, though it is also important to note than most funding rounds in 2016 were undisclosed), compared to 2015 number of US$89 million and 2014 number of US$55 million.
As seen in the graphic below, e-commerce/marketplace is a wildly popular sector to invest in.
Also Read: Central bank governor asks fintech startups in Thailand to register with the bank
The report estimated that M&A activities in the country amounted to more than US$150 million, but only US$37 million of it are disclosed. Of all the disclosed ones, the highest record went to online payment provider Paysbuy which was acquired by dtac for US$24 million in 2008.
500 Startups and 500 Tuktuks scored top position as the most active investor in Thailand, with 31 deals in total. They are followed by InVent with nine deals and CyberAgent Ventures with seven deals.
Though the number of VC funds raised experienced a 50 per cent decline between 2013-2014, it has risen 170 per cent from 2014 until present day.
Between 2012-2015, there were at least US$79 million raised by VC funds in Thailand, with the record broken by Inspire Ventures in 2013 with US$25 million (the majority were also undisclosed).
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Image Credit: Sven Scheuermeier on Unsplash
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