Venture Capital - Thailand

Thailand

Highlights

Thailand is expected to see the Total Capital Raised in the Venture Capital market market reach US$327.70m in 2024.
The Early Stage market is set to dominate the market with a projected market volume of US$159.20m in 2024.
When compared globally, the United States will lead in Capital Raised, with US$136.6bn in 2024.
Thailand's Venture Capital market is experiencing a surge in tech startups attracting foreign investors due to the country's growing innovation ecosystem.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Thailand has been experiencing significant growth and development in recent years.

Customer preferences: Thai entrepreneurs have shown a growing interest in seeking venture capital funding to support their innovative business ideas. This is driven by the desire to scale up their businesses and expand into new markets. Additionally, Thai startups are increasingly looking for investors who can provide not only capital but also strategic guidance and industry connections to help them navigate the competitive business landscape.

Trends in the market: One of the key trends in the Thai Venture Capital market is the increasing number of local and international venture capital firms setting up operations in the country. These firms are attracted by the growing startup ecosystem and the government's efforts to promote entrepreneurship and innovation. As a result, there is a greater availability of capital for Thai startups, leading to increased funding rounds and larger deal sizes. Another trend in the market is the focus on specific sectors such as technology, e-commerce, and fintech. Thai startups operating in these sectors have been able to attract significant investment due to their potential for high growth and disruption. This trend is also driven by changing consumer preferences, with more Thais embracing digital technologies and online shopping.

Local special circumstances: The Thai government has implemented various initiatives to support the growth of the Venture Capital market. This includes the establishment of government-backed venture capital funds and the introduction of tax incentives for investors. These measures aim to attract more capital into the market and encourage investment in innovative startups. Furthermore, Thailand's strategic location in Southeast Asia and its strong economic growth have made it an attractive destination for foreign investors. The country serves as a gateway to the broader ASEAN market, which has a combined population of over 600 million people. This presents significant opportunities for startups to scale their businesses and access a larger customer base.

Underlying macroeconomic factors: Thailand's strong economic growth and stability have played a crucial role in the development of the Venture Capital market. The country has a well-established financial system and a growing middle class, which provides a favorable environment for startups to thrive. Additionally, the government's commitment to digital transformation and innovation has created a conducive ecosystem for entrepreneurship. In conclusion, the Venture Capital market in Thailand is experiencing rapid growth and development, driven by customer preferences for capital and strategic support, as well as the government's initiatives to promote entrepreneurship. The increasing number of venture capital firms, focus on specific sectors, and favorable macroeconomic factors have contributed to the growth of the market. With continued support from the government and the availability of capital, the Thai Venture Capital market is expected to further expand in the coming years.

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.