TVCA’s Investors Survey 2018, in collaboration with the National Innovation Agency and Kasikorn Research Center, explores the profile and opinion of local and international investors based in Thailand on various topics including the fund profile, fund deployment, evaluation metrics and their opinion on the Thailand ecosystem.

1. 1
TVCA SURVEY
Presentation for Startup Thailand 2018

2. 2
The majority of the investors surveyed were Thai or at least locally-based, with most of
them being corporate venture capital firms (CVCs).
VC Profile
Source: TVCA survey.
93%
7%
Nationality of Investor/Company
Local Foreign
23%
60%
3%
10%
3%
Corporate Structure for Investor
VC CVC Angel Private Equity Government

3. 8
Exactly half of the sample CVCs fell into the Financial or Telecommunication industries,
a fact which likely affect the direction of investment and technology development.
VC Profile II
Source: TVCA survey.
22%
28%
11%
17%
0% 6%
17%
CVC Breakdown
Financial Telco
Energy Property
Agro & Food Commerce
Other
23%
60%
3%
10% 3%
Corporate Structure
VC CVC
Angel Private Equity
Government
Predominant group of investors are
CVCs, which may result in corporate
culture clash with startups.
Predominant groups of CVCs are
those affiliated with Telco and
Financial companies, respectively.
This both reflects the corporate
realities of such companies – success
requires more technological
integration than in other industries –
and may also influence the direction
of investments.
The Agriculture industry was not
represented in the sample.

4. 17
The total amount of Thai startup funding between 2011-17 is only one-fifth of the total
amount of capital allocated amongst investors active in the Thai ecosystem.
Fund Deployment
Source: Techsauce; TVCA.
1.0 2.1
9.7
42.7
33.2
86.0
105.6
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
0
20
40
60
80
100
120
2011 2012 2013 2014 2015 2016 2017
Thai Startup Funding 2011-17 (USD mn)
Estimated total funds raised YoY growth
50.42
[Not to scale]
1,310.82
Total fund allocated (USDmn)
Average fund size (USDmn)

5. 22
The average (mean) deployment of funds for each investing entity is limited, more so when two outliers are
excluded. Moreover, the distribution is bottom-heavy and from the sample around one-fourth did not invest.
0%
50%
100%
150%
200%
250%
0 5 10 15 20 25
Percentage of Funds Deployed
Fund Deployment II
Source: Kasikorn Research; TVCA survey.
Summary Statistics
Adjusted Mean % of Fund
Deployed 31%
Median 25%
Lower Quartile 5%
Upper Quartile 52%
Companies Investing 0% 5

6. 26
The limited number of companies that investors have allocated funds to suggests limited
investment opportunities.
Fund Deployment III
Source: Kasikorn Research; TVCA survey.
0
5
10
15
20
25
30
Less than 1 1 to under
3
3 to under
5
5 to under
10
10 or
greater
100 or
more
Investor Strategy: Average Investment Per
Startup (Actual/Expected USDmn)
How many companies have you
invested in?
Unadjusted Adjusted
Total 179 95
Average per
Investor
6.6 3.8
50.42
Average fund size (USDmn)
An overwhelming 90% of investors surveyed (both having deployed funds and otherwise) intend to inject less
than three million dollars into each startup. Given average fund size this would entail that the average-sized fund
invests in more than 16 startups – more than four times the current adjusted mean*.
USDmn average investment per startup
(actual or expected)

7. 27
The limited number of companies that investors have allocated funds to suggests limited
investment opportunities.
Fund Deployment III
Source: Kasikorn Research; TVCA survey.
0
5
10
15
20
25
30
Less than 1 1 to under
3
3 to under
5
5 to under
10
10 or
greater
100 or
more
Investor Strategy: Average Investment Per
Startup (Actual/Expected USDmn)
How many companies have you
invested in?
Unadjusted Adjusted
Total 179 95
Average per
Investor
6.6 3.8
50.42
Average fund size (USDmn)
An overwhelming 90% of investors surveyed (both having deployed funds and otherwise) intend to inject less
than three million dollars into each startup. Given average fund size this would entail that the average-sized fund
invests in more than 16 startups – more than four times the current adjusted mean*.
USDmn average investment per startup
(actual or expected)
Number of investors in each
range of investment strategy

8. 28
0.0 20.0 40.0 60.0 80.0
Manager/Startup team
Strategy/Business model
Market size/Opportunity
Synergy
Technology/Innovation
Other
Revenue/Traction
Business partners
Social responsibility/develop.
What are the most important evaluation metrics for
investment decisions?
A tested business model is an important metric – with exactly half the investors stating that revenue
generation is a prerequisite for investment. However, it is not the most important deciding factor.
Evaluation Metrics
Source: TVCA survey.
50%50%
Is Revenue Generation
Necessary?
Yes No

9. 41
Lack of entrepreneurship, and lack of tech talent, cited as the biggest challenges for the
development of the Thai startup ecosystem.
Challenges facing Thai Startups
Source: INSEAD for Global Innovation Index and Global Talent Competitive Index; TVCA survey.
0.0 20.0 40.0 60.0
Lack of entrepreneurship
Lack of tech talent
Regulatory
Lack of differentiation
Market size
Other
Market readiness
Capital Gains Tax/Dividend Tax
Visa/ Work Permit
Corporate/Personal Income Tax
Competition from foreigner
What are the greatest challenges to the development of
the startup ecosystem in Thailand?
Global Innovation Index
2017
51 – Thailand
7 – Singapore
47 – Vietnam
Global Talent Competitive Index
2018
87 – Vietnam
2 – Singapore
70 – Thailand
[Illustrative]
Entrepreneur-led

10. 55
Almost all the investors plan to deploy more capital within the next three years, with
almost two-third willing to venture outside Thailand for new investment opportunities.
Looking Ahead – Future Investment Plans
Source: TVCA survey.
[Illustrative only]
The geographically disparate nature of responses
reflects borderless nature of startups and their
funding – Thai startups are actually competing with
startups everywhere.
Local competition comes from both incumbent
Singapore and newcomer Vietnam.
No
Yes
Do you have plans for further investments
over the next 1-3 years?
97%
3%
Do you currently have plans to invest
outside of Thailand?
Yes
No
37%
63% 26%
18%
16%
8%
5%
0%
5%
10%
15%
20%
25%
30%
USA Singapore Israel China Vietnam
Countries investors most interested
in for investments abroad

11. 59
Agritech, AI/Big Data, and Financial innovation were the sectors investors specified as
those they were most interested in. However, funding into those sectors remain limited.
Looking Ahead II – Key Sector and Issues
Source: Techsauce; TVCA.
Despite their popularities amongst respondents,
actual investments in all sectors have been limited,
with the most funded sector having been Fintech*,
which attracted a mere 5.5% of funding in 2017.
33% 33%
22%
0%
5%
10%
15%
20%
25%
30%
35%
Agritech/F…
AI/BigD
ata
Fintech
Technology sectors the investors are
most interested in
0.00
50.00
100.00
150.00
2011 2012 2013 2014 2015 2016 2017
Fintech Funding as Proportion of Total
Startup Financing in Thailand (USDmn)
Fintech
5.5%

12. 66
Even though several notable structural issues exist, they are not insurmountable, but they
require consideration in both the short and medium-long terms.
Looking Ahead III – Key Considerations
Source:
[Illustrative only]
Difficulty in attracting funding
for startups in general
Structural Issues
Underdeveloped
entrepreneurship
Insufficient supply of skilled
tech talent
Low rural technology literacy
Development Roadblocks Countermeasures
While issues such as lack of entrepreneurship would be
naturally alleviated over time and with experience, others
such as the lack of tech talent need intervention in both
the short and medium to long terms.
Short-Term
Accelerator/incubator programs
CVC-injected expertise
Tax incentives and work permits
for local and foreign skilled tech
workers
Medium-Long Term
Computer science education
initiatives in secondary school
Government-led initiatives to
promote general tech literacy
Limited local market (e.g. for
agritech, micro-financing etc.)

13. 71
What lessons have we learned from the survey? What could a startup do to attract
funding?
Startup Troubleshooting
Source:
[Illustrative only]
Startup
• Test business model out
early in limited market.
• Speak to/study established
industry players and even
incumbents both local and
regional.
• Get to know experienced
investors even before
funding round. Discuss
your business plans.
• Recruit a strong tech-team,
avoid outsourcing.
• Have revenue generation as
a key medium-term goal so
project eligible for post-
seed funding.
• Reach out to investors,
particularly CVCs – they
want to give you their
money!