Foreign Venture Capital Starts To Seek Greener Pastures

[george]

Foreign venture capital starts to seek greener pastures

BANGKOK: -- Poor investment returns coupled with a lack of experience in the venture capital business on the part of Thai partners has forced foreign investors to start withdrawing investment from Thailand, a senior Thai economic official said on Monday.

Chittraporn Taechacharn, director of the Office of Small and Medium Enterprises Promotion (OSMEP), said that the large-sized venture capital business is now migrating to smaller firms operated by Thais as foreign investors have begun withdrawing their investment here.

She said that overseas investors believe that investment returns in Thailand now are too low as compared to China and Vietnam.

The problem persists, she said, adding that local venture capital businesses prefer to invest in companies run by Thais of Chinese origin, because other local firms do not have sufficient experience in the business.

In addition, Thailand still has no law protecting venture capital shareholders, which forces investors to avoid investment in firms having venture capital funds as the major shareholder, she said.

The average investment in the business angel area, Mrs. Chittraporn said, is about Bt90 million (US$3,150), indicating that such firms generally prefer investing in newly established companies, accounting 47 per cent of total investment.

Firms which are already growing or which have achieved mature business growth are less attractive investment targets, she said.

Finding that investment law in Thailand is still poor, most business angel investors prefer to find reliable business partners in starting the venture.

Mrs. Chittraporn said her office will encourage more small and medium-sized enterprises to use financial services to strengthen their businesses.

--TNA 2007-05-08

[CymruAmByth]

Assuming you cut-and-pasted this article, one must point out the following:

90m THB equates to $2,761,380 USD (using xe.com as of today) and NOT $3,150 USD.

Is it any wonder the investments are leaving when simple mathematics cannot be checked prior to printing?

[Mid]

a senior Thai economic official

good morning .............................

[CymruAmByth]

This might help also!

[highdiver]

"Chittraporn Taechacharn, director of the Office of Small and Medium Enterprises Promotion (OSMEP), said that the large-sized venture capital business is now migrating to smaller firms operated by Thais as foreign investors have begun withdrawing their investment here."

yet another looking to make headlines, but just to be fair there is the answer from 4 days ago.

not that this one is not making headlines as well. but its nicer to be optimistic....

Friday, May 04, 2007

Venture capital fund activity expected to surge

NUNTAWUN POLKUAMDEE

Investment by venture capital funds is expected to rise twofold this year, focusing on the property sector, according to Kunakorn Makchaidee, president of the Thai Venture Capital Association.

Global venture funds would shift toward South and Southeast Asia this year as their economies were expected to post the highest economic growth rates, based on strong performance in the agribusiness, food and logistics sectors.

Thailand will be in the spotlight as the economy was expected to revive in the second half of the year, Mr Kunakorn said.

Investments made through members of the Thai Venture Capital Association totalled 5.44 billion baht in 2006, with 1.6 billion invested in small and medium-sized enterprises. The overall figure was up sharply from 1.14 billion baht in 2005.

''Global venture funds are expected to pour investment all over the Asia region and will focus on sectors that have potential in the eyes of the G7 industrialised countries,'' Mr Kunakorn said.

The top destination for venture capital in 2006 was the agricultural business, followed by energy and non-bank lenders. Electronics businesses were the top investment destination in 2005, followed by the automotive and agricultural sectors.

Agriculture-related, food and logistics businesses will be most popular for venture capital investment in 2007, but the property sector has begun to attract more interest because of cheap asset prices.

''Investors expect the property sector to rebound in the first half of 2008. There is stronger interest in the sector, although the correction is much smaller than in the period before 1997 economic crisis,'' Mr Kunakorn said.

He said the agribusiness sector was poised for significant changes over the next five years due to the government's promotion of Thai food in the international market. The agribusiness sector had slowed during the past three years due to the bird flu.

The Charoen Pokphand Group is expected to remain the market leader due to its five-year plan to revamp its supply chain with a goal to be the world's top exporter of poultry meat and pork.

Non-bank financing including venture funds and factoring represent new opportunities for future investment as they are expected to play more active role in the credit market after the establishment of a deposit insurance agency.

As well, merger and acquisition activity in the banking sector is likely to continue at a brisk pace as local institutions look to strengthen their competitiveness. In the past few months, GE Capital has taken a significant stake in Bank of Ayudhya, TPG Newbridge in BankThai, and Scotiabank in Thanachart Bank.

Regulators' plans to liberalise brokerage commission fees over the next five years will also strengthen M&A activities.

''Political risk is currently the most worrisome factor, but we expect it to be resolved in the first half of 2008,'' Mr Kunakorn said. ''Despite an economic slowdown in this year, foreign direct investment through venture capital funds will increase as the timing is good to buy local assets.''

The Thai Venture Capital Association now has 12 members, seven of which are foreign funds. One of the foreign members has $630 million (22.05 billion baht) in total asset size, he noted.

Bangkok Post

[JR Texas]

"Chittraporn Taechacharn, director of the Office of Small and Medium Enterprises Promotion (OSMEP), said that the large-sized venture capital business is now migrating to smaller firms operated by Thais as foreign investors have begun withdrawing their investment here."

yet another looking to make headlines, but just to be fair there is the answer from 4 days ago.

not that this one is not making headlines as well. but its nicer to be optimistic....

Friday, May 04, 2007

Venture capital fund activity expected to surge

NUNTAWUN POLKUAMDEE

Investment by venture capital funds is expected to rise twofold this year, focusing on the property sector, according to Kunakorn Makchaidee, president of the Thai Venture Capital Association.

Global venture funds would shift toward South and Southeast Asia this year as their economies were expected to post the highest economic growth rates, based on strong performance in the agribusiness, food and logistics sectors.

Thailand will be in the spotlight as the economy was expected to revive in the second half of the year, Mr Kunakorn said.

Investments made through members of the Thai Venture Capital Association totalled 5.44 billion baht in 2006, with 1.6 billion invested in small and medium-sized enterprises. The overall figure was up sharply from 1.14 billion baht in 2005.

''Global venture funds are expected to pour investment all over the Asia region and will focus on sectors that have potential in the eyes of the G7 industrialised countries,'' Mr Kunakorn said.

The top destination for venture capital in 2006 was the agricultural business, followed by energy and non-bank lenders. Electronics businesses were the top investment destination in 2005, followed by the automotive and agricultural sectors.

Agriculture-related, food and logistics businesses will be most popular for venture capital investment in 2007, but the property sector has begun to attract more interest because of cheap asset prices.

''Investors expect the property sector to rebound in the first half of 2008. There is stronger interest in the sector, although the correction is much smaller than in the period before 1997 economic crisis,'' Mr Kunakorn said.

He said the agribusiness sector was poised for significant changes over the next five years due to the government's promotion of Thai food in the international market. The agribusiness sector had slowed during the past three years due to the bird flu.

The Charoen Pokphand Group is expected to remain the market leader due to its five-year plan to revamp its supply chain with a goal to be the world's top exporter of poultry meat and pork.

Non-bank financing including venture funds and factoring represent new opportunities for future investment as they are expected to play more active role in the credit market after the establishment of a deposit insurance agency.

As well, merger and acquisition activity in the banking sector is likely to continue at a brisk pace as local institutions look to strengthen their competitiveness. In the past few months, GE Capital has taken a significant stake in Bank of Ayudhya, TPG Newbridge in BankThai, and Scotiabank in Thanachart Bank.

Regulators' plans to liberalise brokerage commission fees over the next five years will also strengthen M&A activities.

''Political risk is currently the most worrisome factor, but we expect it to be resolved in the first half of 2008,'' Mr Kunakorn said. ''Despite an economic slowdown in this year, foreign direct investment through venture capital funds will increase as the timing is good to buy local assets.''

The Thai Venture Capital Association now has 12 members, seven of which are foreign funds. One of the foreign members has $630 million (22.05 billion baht) in total asset size, he noted.

Bangkok Post

JR Texas: Interesting use of the word "starts" in the title. I think this has been happening for the past six years. Those that were perceptive enough to see where Thailand was going started investing in other places like Vietnam, China and Malaysia a long time ago.

What we are seeing now is the realization among growing numbers of people that investment outflows are exceeding investment inflows.

With no positive changes set to occur to the visa/business/banking rules and regulations, the situation will no doubt continue to get worse.

[Dakhar]

If a boat is sinking, one should quickly find the leak and plug it. But in Thailand, for some reason, makeing the hole bigger is the sollution. I don't understand the logic, maybe the idea is to make the hole more obvious?

You would think a country so full of pride would not allow this to happen.

Flush!

[PeaceBlondie]

Khun Chittraporn is quoted, "The problem persists, she said, adding that local venture capital businesses prefer to invest in companies run by Thais of Chinese origin, because other local firms do not have sufficient experience in the business."

If she wasn't misquoted by a factor of 1000 (as in her US$ reference), is she saying that the newest investors in Thailand only trust Thais of non-Thai origin? Arai nah?

[JR Texas]

If a boat is sinking, one should quickly find the leak and plug it. But in Thailand, for some reason, makeing the hole bigger is the sollution. I don't understand the logic, maybe the idea is to make the hole more obvious?

You would think a country so full of pride would not allow this to happen.

Flush!

JR Texas: Good one!

[cclub75]

Khun Chittraporn is quoted, "The problem persists, she said, adding that local venture capital businesses prefer to invest in companies run by Thais of Chinese origin, because other local firms do not have sufficient experience in the business."

If she wasn't misquoted by a factor of 1000 (as in her US$ reference), is she saying that the newest investors in Thailand only trust Thais of non-Thai origin? Arai nah?

I understand this way : in addition to the problem of foreign venture capital... the local venture capital businesses (that must be thai chinese too) prefere to invest in... thai chinese businesses.

But as you said, there might be some translation issues (as usual).

[wintermute]

Khun Chittraporn is quoted, "The problem persists, she said, adding that local venture capital businesses prefer to invest in companies run by Thais of Chinese origin, because other local firms do not have sufficient experience in the business."

If she wasn't misquoted by a factor of 1000 (as in her US$ reference), is she saying that the newest investors in Thailand only trust Thais of non-Thai origin? Arai nah?

I understand this way : in addition to the problem of foreign venture capital... the local venture capital businesses (that must be thai chinese too) prefere to invest in... thai chinese businesses.

It makes a lot of sense if you think about it. Non-chinese thais who can afford to start investment or venture capital firms usually got their start through some form of nepotism or family connections. Thus the business expertise may not be there. The thai-chinese have been making money hand over fist through the typical overseas Chinese business ingenuity for centuries.

Edited May 8, 2007 by wintermute

[cclub75]

It makes a lot of sense if you think about it. Non-chinese thais who can afford to start investment or venture capital firms usually got their start through some form of nepotism or family connections. Thus the business expertise may not be there. The thai-chinese have been making money hand over fist through the typical overseas Chinese business ingenuity for centuries.

Indeed. But what an admission of weakness...

Basically, the thais thais if i may say are peasants, servants and employees. And will remain so.

And the thai chinese businesses feed the... new thai chinese businesses, through venture capital.

So basically, by pushing away the "foreign" venture capital, the thais are loosing the only way to finance thais thais companies.

It's perfect.

Edited May 8, 2007 by cclub75

[wintermute]

It makes a lot of sense if you think about it. Non-chinese thais who can afford to start investment or venture capital firms usually got their start through some form of nepotism or family connections. Thus the business expertise may not be there. The thai-chinese have been making money hand over fist through the typical overseas Chinese business ingenuity for centuries.

Indeed. But what an admission of weakness...

Basically, the thais thais if i may say are peasants, servants and employees. And will remain so.

And the thai chinese businesses feed the... new thai chinese businesses, through venture capital.

So basically, by pushing away the "foreign" venture capital, the thais are loosing the only way to finance thais thais companies.

It's perfect.

The same situation exists in Malaysia but they have some truly mind boggling native affirmative action programs that are supposed to balance things out but instead puts unqualified incompetent ethnic malays in charge. At least Thailand isn't going this route yet however you have to realize the feudal elite families have always been in charge of Thailand through a combination of monopolization and control over the civil sector. They are a pretty exclusive bunch that even the new money chinese-thai haven't been able to fully breach.

[Steely Dan]

It makes a lot of sense if you think about it. Non-chinese thais who can afford to start investment or venture capital firms usually got their start through some form of nepotism or family connections. Thus the business expertise may not be there. The thai-chinese have been making money hand over fist through the typical overseas Chinese business ingenuity for centuries.

Indeed. But what an admission of weakness...

Basically, the thais thais if i may say are peasants, servants and employees. And will remain so.

And the thai chinese businesses feed the... new thai chinese businesses, through venture capital.

So basically, by pushing away the "foreign" venture capital, the thais are loosing the only way to finance thais thais companies.

It's perfect.

What I find mind boggling is that the Thai Baht is so strong, will there be a sudden realisation of whats happening and the Baht plummet to 50 to the dollar overnight? Well years ending in a '7' have a turbulent history in Asia so who knows? Anyone for a condo in Pattaya?

[Steely Dan]

Of course the foreigners will be blamed for pulling out their money leading to them being made scapegoats for a failing economy, which could cause a negative cycle if foreigners feel less welcome and start leaving, and with the archaic and protectionist land and employment laws who could blame them?

Edited May 9, 2007 by Steely Dan

[unforgiven]

"Chittraporn Taechacharn, director of the Office of Small and Medium Enterprises Promotion (OSMEP), said that the large-sized venture capital business is now migrating to smaller firms operated by Thais as foreign investors have begun withdrawing their investment here."

yet another looking to make headlines, but just to be fair there is the answer from 4 days ago.

not that this one is not making headlines as well. but its nicer to be optimistic....

Friday, May 04, 2007

Venture capital fund activity expected to surge

NUNTAWUN POLKUAMDEE

Investment by venture capital funds is expected to rise twofold this year, focusing on the property sector, according to Kunakorn Makchaidee, president of the Thai Venture Capital Association.

Global venture funds would shift toward South and Southeast Asia this year as their economies were expected to post the highest economic growth rates, based on strong performance in the agribusiness, food and logistics sectors.

Thailand will be in the spotlight as the economy was expected to revive in the second half of the year, Mr Kunakorn said.

Investments made through members of the Thai Venture Capital Association totalled 5.44 billion baht in 2006, with 1.6 billion invested in small and medium-sized enterprises. The overall figure was up sharply from 1.14 billion baht in 2005.

''Global venture funds are expected to pour investment all over the Asia region and will focus on sectors that have potential in the eyes of the G7 industrialised countries,'' Mr Kunakorn said.

The top destination for venture capital in 2006 was the agricultural business, followed by energy and non-bank lenders. Electronics businesses were the top investment destination in 2005, followed by the automotive and agricultural sectors.

Agriculture-related, food and logistics businesses will be most popular for venture capital investment in 2007, but the property sector has begun to attract more interest because of cheap asset prices.

''Investors expect the property sector to rebound in the first half of 2008. There is stronger interest in the sector, although the correction is much smaller than in the period before 1997 economic crisis,'' Mr Kunakorn said.

He said the agribusiness sector was poised for significant changes over the next five years due to the government's promotion of Thai food in the international market. The agribusiness sector had slowed during the past three years due to the bird flu.

The Charoen Pokphand Group is expected to remain the market leader due to its five-year plan to revamp its supply chain with a goal to be the world's top exporter of poultry meat and pork.

Non-bank financing including venture funds and factoring represent new opportunities for future investment as they are expected to play more active role in the credit market after the establishment of a deposit insurance agency.

As well, merger and acquisition activity in the banking sector is likely to continue at a brisk pace as local institutions look to strengthen their competitiveness. In the past few months, GE Capital has taken a significant stake in Bank of Ayudhya, TPG Newbridge in BankThai, and Scotiabank in Thanachart Bank.

Regulators' plans to liberalise brokerage commission fees over the next five years will also strengthen M&A activities.

''Political risk is currently the most worrisome factor, but we expect it to be resolved in the first half of 2008,'' Mr Kunakorn said. ''Despite an economic slowdown in this year, foreign direct investment through venture capital funds will increase as the timing is good to buy local assets.''

The Thai Venture Capital Association now has 12 members, seven of which are foreign funds. One of the foreign members has $630 million (22.05 billion baht) in total asset size, he noted.

you guys are crapin your pants because Taksins gone and know one is in touch with their navel .Relax

[Dakhar]

Of course the foreigners will be blamed for pulling out their money leading to them being made scapegoats for a failing economy, which could cause a negative cycle if foreigners feel less welcome and start leaving, and with the archaic and protectionist land and employment laws who could blame them?

The Tais could, and they will.

[JR Texas]

"Chittraporn Taechacharn, director of the Office of Small and Medium Enterprises Promotion (OSMEP), said that the large-sized venture capital business is now migrating to smaller firms operated by Thais as foreign investors have begun withdrawing their investment here."

yet another looking to make headlines, but just to be fair there is the answer from 4 days ago.

not that this one is not making headlines as well. but its nicer to be optimistic....

Friday, May 04, 2007

Venture capital fund activity expected to surge

NUNTAWUN POLKUAMDEE

Investment by venture capital funds is expected to rise twofold this year, focusing on the property sector, according to Kunakorn Makchaidee, president of the Thai Venture Capital Association.

Global venture funds would shift toward South and Southeast Asia this year as their economies were expected to post the highest economic growth rates, based on strong performance in the agribusiness, food and logistics sectors.

Thailand will be in the spotlight as the economy was expected to revive in the second half of the year, Mr Kunakorn said.

Investments made through members of the Thai Venture Capital Association totalled 5.44 billion baht in 2006, with 1.6 billion invested in small and medium-sized enterprises. The overall figure was up sharply from 1.14 billion baht in 2005.

''Global venture funds are expected to pour investment all over the Asia region and will focus on sectors that have potential in the eyes of the G7 industrialised countries,'' Mr Kunakorn said.

The top destination for venture capital in 2006 was the agricultural business, followed by energy and non-bank lenders. Electronics businesses were the top investment destination in 2005, followed by the automotive and agricultural sectors.

Agriculture-related, food and logistics businesses will be most popular for venture capital investment in 2007, but the property sector has begun to attract more interest because of cheap asset prices.

''Investors expect the property sector to rebound in the first half of 2008. There is stronger interest in the sector, although the correction is much smaller than in the period before 1997 economic crisis,'' Mr Kunakorn said.

He said the agribusiness sector was poised for significant changes over the next five years due to the government's promotion of Thai food in the international market. The agribusiness sector had slowed during the past three years due to the bird flu.

The Charoen Pokphand Group is expected to remain the market leader due to its five-year plan to revamp its supply chain with a goal to be the world's top exporter of poultry meat and pork.

Non-bank financing including venture funds and factoring represent new opportunities for future investment as they are expected to play more active role in the credit market after the establishment of a deposit insurance agency.

As well, merger and acquisition activity in the banking sector is likely to continue at a brisk pace as local institutions look to strengthen their competitiveness. In the past few months, GE Capital has taken a significant stake in Bank of Ayudhya, TPG Newbridge in BankThai, and Scotiabank in Thanachart Bank.

Regulators' plans to liberalise brokerage commission fees over the next five years will also strengthen M&A activities.

''Political risk is currently the most worrisome factor, but we expect it to be resolved in the first half of 2008,'' Mr Kunakorn said. ''Despite an economic slowdown in this year, foreign direct investment through venture capital funds will increase as the timing is good to buy local assets.''

The Thai Venture Capital Association now has 12 members, seven of which are foreign funds. One of the foreign members has $630 million (22.05 billion baht) in total asset size, he noted.

you guys are crapin your pants because Taksins gone and know one is in touch with their navel .Relax

JR Texas: "Investment by venture capital funds is expected to rise twofold this year, focusing on the property sector, according to Kunakorn Makchaidee, president of the Thai Venture Capital Association. ....Thailand will be in the spotlight as the economy was expected to revive in the second half of the year, Mr Kunakorn said....investors expect the property sector to rebound in the first half of 2008."

I think they have been listening to the Everly Brother's Greatest Hits!

Drea-ea-ea-ea-eam, dream, dream, dream

Drea-ea-ea-ea-eam, dream, dream, dream

When I want you in my arms

When I want you and all your charms

Whenever I want you, all I have to do is

Drea-ea-ea-ea-eam, dream, dream, dream

When I feel blue in the night

And I need you to hold me tight

Whenever I want you, all I have to do is

Drea-ea-ea-ea-eam

I can make you mine, taste your lips of wine

Anytime night or day

Only trouble is, gee whiz

I'm dreamin' my life away

I need you so that I could die

I love you so and that is why

Whenever I want you, all I have to do is

Drea-ea-ea-ea-eam, dream, dream, dream

Drea-ea-ea-ea-eam

I can make you mine, taste your lips of wine

Anytime night or day

Only trouble is, gee whiz

I'm dreamin' my life away

I need you so that I could die

I love you so and that is why

Whenever I want you, all I have to do is

Drea-ea-ea-ea-eam, dream, dream, dream

Drea-ea-ea-ea-eam, dream, dream, dream

The real estate crash is not happening.......things are wonderful in Thailand......it is the Land of Smiles.....the visa/business rules are easy to understand, logical, and great for Thailand's economy.....global warming will not cause the oceans surrounding Thailand to rise......dream, dream, dream, dream............