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Get to Know Corporate Venture Capital (CVC) in Thailand: Overview, Highlights and Trends.

DIGITAL VENTURES March 08, 2017 3:44 PM

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The Faster Future | SCB FinTech Forum by SCB and Digital Ventures featured Mr. Polapat Arkkrapridi or Paul Ark – Managing Director of Corporate Venture Capital at Digital Ventures who shared on the overview, highlights and growing trends of Corporate Venture Capital or CVC in Thailand. With his profound experience in Corporate VC and as an angel investor, he touched on the following interesting topics.

Thailand at the 3rd wave of CVC

  • First wave of CVC in Thailand – Paul discussed that the beginning era of startup investments started among telecommunication industry as newborn technology and innovation at the time were mainly on mobile phones.

  • The second wave succeeded 4 years later, this was when financial institutions and banks such as SCB began investing in Fintech via Digital Ventures. These ventures expanded across the country and beyond with a total investment from all Thai banks in 2016-2017 accumulating to over 130 million USD.

  • The third wave or the latest one took place when various industries turned heads to the significance and seriously began to invest in startups. Industries in the energy and petrochemicals, chemicals as well as real estate sectors aimed to recruit fresh technology and innovation. Today, several corporates establish accelerator projects as well as Corporate Venture Capital. Such investment is viewed as having lesser financial burden (compared to the enormous revenue of the corporates) yet able to provide outcomes and outstandingly define business.

 Strategic Return as the Heart of Corporate VC

Although Corporate VC and Financial VC both look to invest in startups, yet their expectations in return prove quite different. Financial VC longs for financial or profit returns resulting from the development of the startups whereas Corporate VC seeks strategic returns. They hope to gain technological know-how and discover fresh innovation from the venture. Also, it looks to multiply business networks and nurture the ecosystem to deliver new, exciting products or services for the country.

Comparison: Financial VC vs. Corporate VC

For more information, visit Business Opportunity through Corporate Venture Capital