Not all startups can become a unicorn, a new business with a valuation of over $1 billion, but all unicorns begin as startups. Startups need a foundation to support their growth and boost their chance to become unicorns.
Beacon Venture Capital Co Ltd (Beacon VC), a subsidiary of Kasikornbank, has a project called Katalyst Startup Launchpad, which creates an ecosystem for nurturing new startups.
Beacon VC invests in startups in the stage of stable business growth, says managing director Thanapong Na Ranong. But the company also sees the need to nurture new startups, which led to the project’s creation two years ago.
Based on the “close friends of startups” concept, Katalyst Startup Launchpad has seen 52 teams graduate over the past two years. Many of them succeeded in growing their business with the knowledge learned.
Thanapong said Beacon VC wants Katalyst Startup Launchpad to serve as a “sandbox” for new startups to grow.
Beacon VC focuses on investing in startups with minimum Series A funding, as the goal is to use their innovations in boosting the business potential of Kasikornbank.
To help early-stage startups grow, Beacon VC creates a strong community and ecosystem for them while providing them with knowledge and advice, according to Thanapong.
Under the Katalyst Startup Launchpad project, seminars, workshops and academic events have been organized in collaboration with Stanford Thailand Research Consortium in the form of e-learning. The mentor team includes lecturers and former students of Stanford University, as well as experts from Beacon VC.
“We believe these startups can grow and create impacts on the industry in the future. Certain startups with products may do business with the bank or get services from the bank. We want to create an ecosystem to make Thai startups strong,” Thanapong said.
Unlike in the previous years, this year’s project course will involve more offline learning activities, he added.
In the third year, Katalyst Startup Launchpad 2022 will be held under the concept of “jumpstarting your idea through the entrepreneurial mindset”. It is a nine-week free intensive course between August 23 and October 24, 2022.
Course participants learn about business ideas, analysis of customer demands, improvement of competitiveness, brand building, product development, entrepreneurship, marketing, financial management, and business planning, among other matters.
In the last week of training, three startup teams with the best performance win total cash prizes totalling 800,000 baht and the chance to work with Kasikornbank.
All graduates of the course are given KATALYST by KBank certificates from Kasikornbank and Stanford University.
This year’s focus is on startups involved in the sectors of B2B, FinTech, Health Tech, Travel Tech, EdTech, and Green Tech.
Golden year for startups
2021 was a golden year for startups and venture capitals, with the highest investment value globally. Thailand saw more investments in unicorns.
The Covid-19 pandemic boosted the need for more digital technologies and innovations, which in turn led to increased investments in startups.
In 2022, startup companies have seen a decline in investment and their value due to economic impacts resulting from war and inflation.
Startups need to have a stable business in order to survive future challenges as their “golden age” seems to have been over. They have to be self-sustained and have enough funds that allow them to survive for at least three years because external funding will become more difficult.
“To survive for three years, you have to have good self-management skills, with sufficient income and expenditures that are not too high. The burn rate is not as high as in the past. You have to be able to survive with the strength of your products and services,” Thanapong said.
Improvements for participants
Kasama Jatejarungwong, founder and CEO of The Omelet, said that its participation in the Katalyst Startup Launchpad project helped the company improve its potential and portfolio.
The Omelet has experience in running social enterprises for large corporations like Shell, Toyota and Amway, according to Kasama.
She said that by joining the project, her team could tune up their work for better mutual understanding between them. Also, they could access guidance from many world-class mentors.
“I didn’t have high expectations when first joining the course,” she said. “What impressed me was that [the mentors] read 80 presentations every week. We got valuable feedback from them.”
Also, Katalyst Startup Launchpad offers her team a better chance to join world-class projects by tech giants like Microsoft and Alibaba, Kasama said.
The Omelet aims to attract 1 million customers in Southeast Asia to its messaging business within 2025.
Meanwhile, Krisada Ungmaneeprasert, co-founder of SafeTrip Co Ltd, said that by participating in the Katalyst Startup Launchpad project, his team could realize their idea of developing a navigation system that notifies users of locations prone to dangers and road accidents.
Thanks to the project, his business skills have been improved while his network of startup allies is expanding.
“The fact that the project is carried out online allows me to join although I live in Udon Thani. We were trained from zero until we could develop our business plans,” he said.
