BOI launches matching fund to boost competitiveness of startups

Startups in targeted industries will soon enjoy financial support from the Board of Investment of Thailand (BOI), after it recently launched a new fund to match the subsidy provided by the venture capital fund at up to 50 million baht per company.

BOI secretary-general Narit Therdsteerasukdi said on Wednesday that the fund was approved last month by the National Competitiveness Enhancement for Targeted Industries Policies Committee, chaired by Finance Minister Pichai Chunhavajira.

The move aims to support Thai startups in targeted industries, who are in the process of fundraising to expand their businesses, covering those in pre series A to series A levels, he said.

Narit said the BOI would be providing financial support of 20 million to 50 million baht to match the amount that the startup has received from the venture capital fund. The fund is expected to help them in business expansion and compete at the international level, as well as in becoming a unicorn, or a privately owned startup valued at over US$1 billion.

To be eligible, the startup must be set up under Thai laws, with at least 51% shares held by Thai nationals, and the founder(s) must hold at least 60% of shares. The startup must also have received at least 15 million baht from the venture capital fund that is listed with the National Innovation Agency.

Targeted industries for eligible startups include digital, electronics, modern automobile, agriculture, food, medicine, biotechnology, and robotics. The candidate must also present a clear business plan with focus on expanding at the international level, including but not limited to international fundraising and overseas market penetration.

Narit said that besides financial support, eligible startups would also enjoy tax benefits under BOI’s policies, as well as benefits provided to foreign experts that the companies hire, including visa and work permit facilitation. 

"Funding and human resources are crucial factors for the growth of startups. The BOI is therefore committed to supporting startups in these aspects through a fund aimed at enhancing their competitiveness,” he said.

“They will be provided with sufficient capital to advance technology development as well as new products and services, expanding into the global market, and increasing their chances of growing into unicorns. It is an important step in helping Thailand become a regional innovation hub,” he added.