Technology-based startups in Thailand have grown rapidly in recent years, although startups with a high potential for development impact remain at a nascent stage, according to a new report by the Asian Development Bank.
A combination of indigenous entrepreneurship and a supporting ecosystem of policies and supporting players have helped drive the growth of the country’s tech startup scene, according to the report, Thailand’s Evolving Ecosystem Support for Technology Startups, released today. Fintech and e-commerce dominate the landscape, while startups with high development impact—those focused on education (edtech), health (healthtech), agriculture (agritech), and the environment (greentech)—have developed more recently.
These sectors are considered especially important because of their potential to contribute to human capital development, agricultural productivity, and climate change mitigation. However, they tend to attract less venture capital and support for several reasons. Rather than services, they often offer products, which must be manufactured and require advanced manufacturing capability. In addition, product development takes time, while venture capital seeks short gestation periods and quick returns.
