The COVID-19 crisis has exacerbated the challenges faced by Thai startups, with only a few likely to survive. Today, as the pandemic situation improves, many startups are beginning to land, primarily due to a lack of investors. The big question is: what is the path to survival for Thai startups?

Businesses in Thailand during the COVID era need efficiency, incorporating digital solutions into their operations. I spoke with some startup founders before the pandemic and learned that many Thai startups might not last much longer. In the post-COVID landscape, many are starting to land due to the absence of investors. Some are shutting down, while others are downsizing, desperately seeking ways to survive and generate revenue as quickly as possible.

I would advise that before shutting down or landing, consider what assets or strengths your business currently has, such as software, a customer base, or a business model. Try to find larger companies to partner with; at the very least, you can sell your business and still make some money or continue to grow.

Another approach is to pivot your business model to something related or that can be expanded upon, starting from what you already have. By adapting, you might attract investors again. If your business still shows promise, consider streamlining operations or going into hibernation instead of shutting down immediately. Cut costs as much as possible to extend your runway until the market rebounds, at which point you can re-enter. Sometimes, a slight shift in perspective can lead to significant improvements.

Therefore, I encourage startup founders to engage with others more frequently and broaden their horizons. You might discover new insights or opportunities. If you feel overwhelmed, now might be a good time to land, but it requires some finesse. Create multiple options before deciding to shut down; you might find someone with complementary needs to collaborate with.

Currently, the government is implementing various policies and has established a fund that brings together major companies in Thailand, such as PTT Group, CP, Thai Beverage, etc. They have created a fund called InnoSpace, which is now injecting capital to support startups in Thailand. This provides a solution for those looking to land their businesses, allowing them to issue convertible debentures, which means they can sell shares to the public.

This allows for the sale of shares to investors, functioning similarly to a loan, where investors can convert their loans into shares in the future. I see this as an opportunity for entrepreneurs, not just startups, to access new methods of raising funds more easily.

While the above may represent the perspective of startups seeking survival, for those already in business looking to invest, these two groups seem to inhabit different worlds. The challenge is how to bring these two worlds together.

I believe that businesses in Thailand, especially during the COVID era, require efficiency and the integration of digital solutions, but many are unsure how to achieve this. Everyone wants to find tech talent, but there is a shortage, particularly among older generations. Meanwhile, younger individuals can do everything mentioned but lack funding. Thai startups have great technology but lack the right matches.

However, older business leaders may need to make more effort to connect with the younger generation in the startup scene. Similarly, young entrepreneurs should also strive to reach out to their older counterparts. When these two groups converge, it creates a harmonious collaboration: the older generation has the funds and seeks technological assistance, while the younger generation has the technology but lacks capital. It's essential to find that connection.

Investing in early-stage startups requires relatively low capital, primarily spent on hiring. Some businesses may only need a few hundred thousand or 1-2 million baht, depending on their growth stage. The advantage of low initial investment is that it is not expensive, but the downside is a higher risk of failure.

Therefore, if we can assist them in areas where we excel, it can lead to fruitful collaborations. In the post-COVID era, I believe we will see fewer instances where investments of 20-30 million baht are necessary; with just a few hundred thousand or a million baht, you can find the type of company you want. If you previously wanted to invest in certain startups before COVID, I recommend reaching out again; prices have significantly decreased. Investing in technology startups not only helps support Thai startups but also presents an interesting investment opportunity.

SOURCE : www.bangkokbiznews.com