Investment funds are sprouting up to finance Southeast Asia’s rising tech companies.
The spread of internet use in the wake of global capitalism offers one of the best chances for technology companies to access greater funds.
Last year’s initial public offering of Facebook shares and the company’s US$1-billion acquisition of Instagram triggered a global investment boom in tech firms, said Vitaya Arunanondchai, a partner of the newly established M8VC venture capital fund.
Asian tech firms, especially those in China, have been attractive to European and US investors.
But now Southeast Asia is drawing attention as share prices of Chinese tech firms get too high. Japanese investors are also moving out of China in light of political conflicts, said Mr Vitaya.
“Thailand has become a hub of Southeast Asia thanks to the country’s strong basic infrastructure and high population,” he said.
M8VC was formed by eight investors with business backgrounds in banking and technology. The company positioned itself as an investment centre for Southeast Asian venture capital networks and has 38 partnership funds.
Mr Vitaya said the company will spend 100 million baht this year on incubator-type ventures with a minimum investment amount of 300,000 baht each.
“We plan to invest in 3-5 incubators this year,” he said.
M8VC will also invest in three mature firms with a minimum investment of 10 million baht each.
InVent, the venture capital arm of Shin Corporation, has allocated 10%of its free cash flow to invest in techrelated firms, mainly in telecommunications, digital content, entertainment and media, said Suphajee Suthumpun, Shin’s chairwoman for media and new business.
“We have position ourselves as a corporate venture and will invest in businesses that provide us with synergy,” she said.
InVent last year entered its first venture deal with Ookbee, a digital publication firm, in a drive to tap the burgeoning e-book market. The company acquired a 25% stake for 57.8 million baht.
Ms Suphajee said the company will close another deal in digital content business soon.
Given the imminent rise of thirdgeneration (3G) mobile broadband service, the new digital TV era and the greater acceptance of mobile technology, InVent sees many opportunities for tech entrepreneurs.
Jay Jootar, chairman of the Venture Catalyst Group, said his firm’s investment style differs from most, as the company likes to build the ventures from scratch.
“We act like a corporate venture,investing in targeted technologies and seeking talented engineers to develop and incubate them,” he said, adding that the group will spin off a business once it matures.
Mr Jay said Venture Catalyst has the financial support of China’s Foxconn Technology Group, the world’s biggest contract manufacturer, and Power-All Networks, the cloud computing firm.
The company has allocated 40 million baht for potential investees this year, with an additional 100 million baht designated for the next few years.
Sopon Punyaratabandhu, the president of Vnet Capital Co, said the information and communications technology industry,especially e-commerce and applications for smartphones and tablets, will be the hot area this year with the launch of 3G commercial service.
Vnet plans to invest 100 million baht this year in well-established companies and start-ups.
“We believe our connections and experience will help to build investee companies,” said Mr Sopon.
“We not only chip in money but also coach entrepreneurs and help them to grow businesses and solve problems in commercial and practical ways.”
Suwipa Wanasathop, vice-president for business development at the National Science and Technology Development Agency, said the office is offering low-interest loans in a drive to promote tech-related firms.
The agency also has a joint-venture fund for firms looking to commercialise research technology. The fund has set aside 200 million baht for investment in 2012.
The Thai government has also allocated 40 billion baht under a fouryear budget for the Tang Tua Dai Fund,with 5 billion designated for this year.
The fund is designed for young would-be entrepreneurs with university degrees, said Mrs Suwipa.
Reference :
Suchit Leesa-Nguansuk. ADVENTURES IN CAPITAL. Bangkok Post (TECHNOLOGY). ฉบับวันที่ 20 มีนาคม พ.ศ. 2556.– ( 58 Views)
