New VC firm to help local IT start-ups
Four information-technology companies have invested Bt10 million to set up Iyara VC, a venture and angel capital fund, to support local software and IT companies.
The firm expects to invest Bt300 million over five years in about 100 start-ups and reap a return on investment of five to 10 times.
The four founders are MSL Software, AdaSoft, Comanche International and Synature.
Somboon Sukheviriya, president of Comanche International, said yesterday that Iyara VC aimed to develop sustainable software and IT companies.
It will pass on experience to new start-ups to build up their business in both the domestic and international markets.
Iyara VC will provide up to Bt3 million in angel funding to a company in exchange for an equity stake of up to 25 per cent in the company.
The new firm started business three months ago.
Iyara VC is also expected to help local software and IT companies survive in the market in the long term. Apichai Sakulsureeyadej, director of MSL Software, said the company would first focus on software development in four markets – retail, tourism, government, and food and beverages.
However, a start-up seeking investment from Iyara VC must have completed 70-80 per cent of its development programme.
"I think local software firms have high potential to develop products and services to support both local and international markets and can enlist more funding from international venture capitalists," he said.
Wissanuphong Wongwas, CEO of AdaSoft, said the firm had already invested in one start-up called FIXZY and was negotiating with three others about funding.
Chatchai Tolertmongkol, a marketing and business development executive at Synature, said: "We will transfer our experience to start-ups and will help them run their business with reduced risk so that they can achieve sustainable growth in the market."
