Thai Stock Exchange launches blockchain crowdfunding platform to fund startups
According to a recent announcement from the Stock Exchange of Thailand (SET), a blockchain-based crowdfunding platform has been officially launched to improve access to capital fund for startups and small and medium-sized enterprises (SMEs) in Thailand.
Developed by the SET, LiVE is the first Thailand crowdfunding platform for startups and SMEs. The platform has officially launched with eight targeted businesses from various sectors such as mobile application, consumer products and medical equipment. It is expected to expand to include over 50 companies.
The LiVE crowdfunding platform provides the Over-the-Counter (OTC) trading service for startups and SMEs to access capital funding. Its infrastructure is supported by blockchain technology which allows participating businesses to expand and get connected with future alliances.
Businesses to be qualified to join LiVE have to be companies registered in Thailand, whose founders and executives carry no criminal records with financial statement audit conducted by certified auditors.
In order to raise over THB 20 million, an eligible business must present a record of previous capital raising of at least THB 5 million, or be endorsed by a sponsor. For fundraising of over THB 100 million, the financial statements audited by Securities and Exchange Commission (SEC)-certified auditors must be presented.
For a company to join the platform, it must first register as a member with proof of identity and go through a screening process. Then, it will have to prepare campaigns with a presentation and Q&A with investors. After a campaign is completed, the business will receive funding to support its business plans. The process is supported by the registrar of the platform.
There are four types of investors for this platform - institutional investor, venture capital, corporate venture capital and specific investor with annual income no less than THB 4 million or with combined assets worth no less than THB 50 million, and at least one year of investment experience.
Using the LiVE platform, an investor must first sign up to be a member with proof of identity. After that, the investor can meet companies listed on the platform and explore available offers. The platform aims to facilitate investment in listed campaigns and help investors become a shareholder. It also allows investors to trade their shares and reinvest in other campaigns.
For investors, the LiVE platform offers four major benefits: (1) to explore businesses with ease in the one-stop portal, (2) coverage of all investment processes including funding raising and trading, (3) ability to trade and settle with a trusted and transparent system, and (4) ensure shareholders’ benefits with trusted registrar services.
“LiVE platform will be a key mechanism to help drive forward Thailand's growth especially enabling startups and SMEs to have more financial accesses through crowdfunding. Businesses can utilize LiVE to promote to a wider target group while using partnership to expand customer base. In addition, this platform also offers opportunities for investors, both individual and corporate, who are qualified by the Securities and Exchange Commission regulations, to select to invest in their preferred business with growth potential," said Mr Kesara Manchusree, President of SET.
According to Mr Manchusree, SET is determined to offer growth opportunities through the creation of a complete startup ecosystem, inclusively from the business management education for startup and SME entrepreneurs, to assistance in connecting with institutional and accredited investors. To operate the crowdfunding platform, SET has established Live Fin Corp Co. Ltd.