According to Tech in Asia and the World Bank, Thailand has only about 180 funded startups — far behind Singapore (1,800), Indonesia (900), and Vietnam (400). Yet Thai startups still managed to raise a record USD 1.25 billion in 2022, showing that the country’s startup ecosystem has untapped potential. Many promising business ideas may simply be slipping under the radar.
That momentum, however, has cooled. Funding fell back to around USD 1.0 billion in 2023, and in 2024 so far, deal activity has reached just over USD 500 million, with seed and pre-Series A rounds dominating. This shift underlines that while early-stage interest remains, larger growth rounds are more elusive — and Thailand risks losing ground to its neighbors if the gap persists.
So what’s holding Thailand back from becoming a true startup hotbed?
Early-stage capital gaps. More seed and Series A funding is needed to prevent promising ideas from fading too early.
Global-standard talent. Local and international professionals, from CFOs to engineers, are needed to professionalize operations and craft equity stories that resonate with investors beyond Thailand.
Exit strategies. IPOs on markets like Nasdaq could provide higher multiples, global visibility, and deeper investor pools. But they also bring real challenges — compliance, costly listings, and investor scrutiny — that Thai founders must prepare for.
Policy support. The government should streamline SME regulations, upgrade infrastructure, and create incentives that encourage risk-taking and innovation.
Lack of truly independent venture capital. While Thailand has many corporate venture capital (CVC) arms, there are relatively few VC funds that are wholly independent — meaning they are not part of large conglomerates and can take high-risk, high-growth bets without needing to align with a parent company’s core business. True Incube (of True Corporation) or PTT Ventures are very active, but their investment mandates often include synergy with existing corporate assets. Compared to Vietnam’s Dragon Capital, or independent funds with pure VC mandates in Singapore or elsewhere, Thailand’s ecosystem still lacks scale in this “free-standing” VC sector.
These efforts are not just about producing unicorns for headlines. A thriving startup ecosystem can help address pressing domestic challenges — from digital inclusion to sustainable energy — while positioning Thailand as a regional hub for innovation.
There are lessons from neighbors. Singapore leveraged government-backed funds and tax incentives, Vietnam attracted global VCs with its young workforce and competitive costs, and Indonesia has built unicorns through sheer market size. Thailand, sitting in between, must carve out its unique edge by combining talent, capital, and governance.
The government should focus not only on redistributing wealth — with the top 10% already holding 75% of the nation’s financial assets — but also on growing the pie by fostering private-sector game changers. The next decade will determine whether Thailand remains stuck in the middle of the pack — or rises as ASEAN’s next true innovation hub.
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Dai Kadomae, CFA, CPA
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