Traditional Capital Raising - Thailand

The Total Capital Raised in the Traditional Capital Raising market market for Thailand is forecasted to reach US$402.00m in 2024.
Venture Capital emerges as the dominant player in the market with a projected market volume of US$327.70m in 2024.
When compared globally, the United States is expected to generate the highest amount of Capital Raised (US$159.0bn in 2024).
Thailand's capital raising market sees a resurgence in traditional methods as local businesses prioritize stability and long-term growth over riskier alternatives.

Definition:

The Traditional Capital Raising market relates to venture investment in startups and emerging companies that are not yet generating positive or significant revenue but have high growth potential. The capital is mostly raised from venture financial institutions, and minorly from banks.

Structure:

The market consists of two segments:
- The Venture Capital market refers to private equity funding that is offered to startups and emerging companies.
- The Venture Debt market refers to the combination between equity and debt financing, which is used to finance the early stage and growth stage capital-backed companies.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Although the Traditional Capital Raising market is highly competitive in investment opportunities due to the rapidly high growth rate of startups and emerging companies, it has become more popular for these businesses who cannot get traditional loans from banks, to develop and grow their businesses or projects.
Key players in this market are companies such as Sequoia Capital and Hercules Capital.

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Venture Capital
Venture Debt

Traditional bank loans
Digital capital raising

The Traditional Capital Raising market in Thailand is experiencing significant growth and development.

Customer preferences: Thai investors have traditionally favored traditional capital raising methods such as bank loans and private equity investments. However, there has been a shift in customer preferences towards alternative methods such as crowdfunding and initial coin offerings (ICOs). This change is driven by the desire for more diverse investment opportunities and the potential for higher returns.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Thailand is the increasing popularity of crowdfunding. This method allows individuals to invest in startups and small businesses, giving them access to a wider range of investment opportunities. The rise of crowdfunding platforms has made it easier for entrepreneurs to raise capital and has democratized the investment process. Another trend in the market is the emergence of ICOs. This method of capital raising involves the sale of digital tokens or coins to investors. ICOs have gained popularity in Thailand due to the potential for high returns and the growing interest in blockchain technology. The Thai government has also been supportive of ICOs, implementing regulations to protect investors and promote transparency in the market.

Local special circumstances: Thailand's growing digital economy and tech startup ecosystem have contributed to the development of the Traditional Capital Raising market. The government has implemented various initiatives to support the growth of startups and encourage innovation. This includes the establishment of startup hubs, tax incentives, and regulatory reforms. Furthermore, the Thai Securities and Exchange Commission (SEC) has introduced regulations to facilitate crowdfunding and ICOs. These regulations provide a framework for fundraising activities and protect investors from fraudulent schemes. The SEC's proactive approach has created a favorable environment for capital raising in Thailand.

Underlying macroeconomic factors: Thailand's strong economic growth and stable political environment have also played a role in the development of the Traditional Capital Raising market. The country's GDP has been steadily increasing, creating a favorable investment climate. Additionally, the government's focus on digital transformation and innovation has attracted both local and foreign investors to the market. In conclusion, the Traditional Capital Raising market in Thailand is experiencing growth and development driven by changing customer preferences, emerging trends such as crowdfunding and ICOs, local special circumstances including a supportive government and growing tech startup ecosystem, and underlying macroeconomic factors such as strong economic growth and political stability. These factors have created a favorable environment for capital raising in Thailand and are likely to continue driving the market's growth in the future.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.