One Asset Management (ONEAM) is joining hands with partners to provide support to tech startups via ONE-FINEPE-UI, Thailand's first accelerator fund.
Chief executive Pote Harinasuta said ONEAM sees opportunities to help strengthen the potential and increase the efficiency of tech startups in the country.
ONEAM is cooperating with Krungsri Finnovate Co Ltd and E-frastructure Co to set up ONE Finno Efra Private Equity (ONE-FINEPE-UI), a mutual fund that invests in Finno Efra Private Equity Trust.
With a size of 1.3 billion baht (roughly US$35 million), Finno Efra Private Equity Trust invests in non-listed companies and startups with a focus on digital transformation, including technologies that help increase innovation in industrial production, as well as marketing tech for developing artificial intelligence systems to help process market data analysis and evaluation.
The trust also plans to target tourism-related technology that can increase flexibility and convenience for ticket booking, travel planning, and e-commerce and lifestyle businesses using technology in daily life.
Investment per deal is expected to be in the range of 8-40 million baht, said Mr Pote.
ONE-FINEPE-UI is in the initial public offering process. The fund's units are slated for allocation between Nov 11-28, with a minimum investment of 500,000 baht and a maturity of 10 years.
He said ONE-FINEPE-UI is the first accelerator fund in Thailand, aiming to provide knowledge to startup executives through highly skilled mentors, trainers and coaches.
This mentorship is to be developed by Krungsri Finnovate and E-frastructure, which have experience in startup investment.
"We see this as an opportunity to increase the returns and investment options for Thais by focusing on startups," said Mr Pote.
ONE-FINEPE-UI invests in startups from seed to pre-series A or early stage development. That means the investment carries high risks and will only be offered to investors who can tolerate the risk level, such as ultra-accredited or institutional investors, he said.
Sam Tanskul, managing director of Krungsri Finnovate and co-trust manager of Finno Efra Private Equity Trust, said ONE-FINEPE-UI will allocate around 60% of its investments to Thai startups and 40% in Southeast Asia.
"While there are many promising startups in the market, they often lack access to sufficient funding opportunities. This trust will provide a valuable platform for startups to secure funding, gain knowledge and build important connections," he said.
"Many startups are looking for channels to expand their businesses without a large amount of capital. They have solid fundamentals, which are essential for business growth, and their products are well-suited to the market."
Pawoot Pongvitayapanu, chief executive of E-frastructure and co-trust manager of Krungsri Finnovate, said startups can grow up to 10 times, much faster than small and medium-sized enterprises.
"This is a good opportunity for wealthy investors because startups have adapted after the Covid era. I believe ONE-FINEPE-UI fund provides a new dimension for investment in which investors don't have to wait too long to capture good returns," said Mr Pawoot.
"Thailand has a strong startup base that is ready to help transform the country. This is the goal of this fund."