New VC funds to boost startup growth in 2024

This year, the growth of startups is anticipated to see a significant boost as several new venture capital (VC) funds emerge, following a period of slowed activity during the pandemic and recent crypto winter. Among these is the Finno Efra Fund, valued at 1.3 billion baht, co-established by EfraStructure and Krungsri Finnovate, with operations set to commence in March.

Pawoot Pongvitayapanu, the tech pioneer and angel investor behind EfraStructure, has previously invested in 48 startups. However, this year he transitioned from angel investor to investing via EfraStructure, aiming to increase the number of startups in pre-series and series A funding rounds.

“Finno Efra will groom 10 startup teams for four months, with funds of US$200,000 to US$2 million per startup.”

The fund’s investment focus is geared towards businesses driving impactful change and digital transformation across various sectors, including fintech, edutech, health tech, agritech, and mobility tech. Industrial tech, marketing tech, human resources tech, travel, e-commerce, and lifestyle tech are the primary areas for investment in terms of digital transformation.

Sam Tansakul, managing director of Krungsri Finnovate, indicated that the new fund is focused on investing in small startups, aiming to foster sustainability and facilitate economic development. Pawoot’s diverse startup portfolio is designed to minimise risk and create synergy among startups, thus fostering collective growth. The startups he has previously invested in span a broad spectrum of industries, from e-commerce, e-logistics, fintech, and advertising to health tech and games.

In 2023, his investments generated revenue of 2.6 billion baht, involving 1,623 employees and 344 programmers. Pawoot ‘s startup portfolio has reportedly helped entrepreneurs generate sales of 82 billion baht, enabling them to export to more than 100 countries and employ 17,600 staff, assist 300,000 patients, reduce travel costs by 1 billion baht, and provide digital skills to 18,540 individuals.

Three startups in which Pawoot has invested, including social listening platform Wisesight, construction platform Builk, and telehealth platform Dietz, are set to launch initial public offerings soon.

“We saw that in the past few years, there was a lack of new startups, particularly in the seed and pre-series A rounds.”

Additionally, another VC fund is anticipated to be established by True Incube, a startup incubator under True Corporation. Suphachai Chearavanont, chairman of True Corporation, suggested that True might utilise True Incube to establish a VC fund worth US$200-300 million. The company also plans to seek more strategic partnerships to increase the fund size to US$500 million, creating a more substantial impact, reported Bangkok Post.