Agency unveils B1bn startup co

The National Innovation Agency (NIA) will make an aggressive move to co-invest in startups through different models to unlock startup growth opportunities in Thailand and overseas.

One model is the planned establishment of a private equity (PE) trust valued at 1 billion baht to invest in promising startups.

The move comes right after the third version of the royal decree governing the establishment of the existing NIA takes effect on June 30.

The 2026 version of the legislation aims to strengthen the NIA's role in developing the country's innovation sector and supporting the commercialisation of research and inventions.

Krithpaka Boonfueng, executive director of the NIA, said that by the end of this year, she expects local startups to be able to access more sources of state funding, mainly during their pre-Series A to Series A funding rounds.

The third version of the decree allows the NIA to hold shares, become a partner, or enter into joint ventures with individuals or legal entities in activities related to its objectives, provided that profit-making is not the main purpose.

The legislation further permits the agency to invest in trusts established for joint investment activities connected to its mission.

Shareholding, partnerships, joint ventures, trust investments, and borrowing must comply with criteria to be set by the cabinet.

Ms Krithpaka said the NIA plans to introduce three funding models.

The first and current model is that it will pursue co-funding with private businesses to provide grants covering 75% of project value.

The second model involves the establishment of a PE trust fund valued at 1 billion baht, of which at least 500 million baht will be initially contributed by the NIA and the Stock Exchange of Thailand (SET), while the remainder will come from potential private partners. It will be managed by a fund manager.

The third model is the establishment of a holding company, together with other holding firms founded by universities, to co-invest in startups.

Under all these models, the NIA will limit its shareholding in startups to a maximum of 20% to allow startup founders the flexibility to manage their businesses.

The NIA funding will focus on deep tech and digital technologies with high growth potential.

Under these three models, the agency will allocate 40% of its total budget to the PE trust, while the rest will be split equally between the holding company model and the co-funding model.

Moreover, the NIA plans to discuss with the Finance Minister the provision of tax incentives or tax exemptions for investors in startups, including companies that use product licences from universities' R&D to develop their businesses. The tax incentive will apply only to revenue generated from such licences.

"Currently, tax exemption for expenses only covers R&D, but we think this should be expanded to cover innovation investment," Ms Krithpaka said.

She said that the cabinet recently approved the NIA to oversee the 'Innovation List', with the responsibility transferred from the National Science and Technology Development Agency. The transfer will be completed by October.

The Innovation List is an official register of products and services researched and developed by Thai individuals or organisations in Thailand that have received formal certification and registration.

The primary objective is to encourage government agencies to procure innovations on the list, thereby creating a market and driving research towards commercialisation.

The NIA will build a platform to allow private businesses applying to have their innovations listed to track the listing process, making it more transparent, and will open the approval process for the Innovation List to external experts.

The NIA also plans to introduce tiers for listed innovations. For example, some innovations may remain on the list for four to five years before expiring, while others may stay for a maximum of eight years, a change from the current flat eight-year period.

"The eight-year period will still be provided to wellness, health tech or other forms of deep tech that have a longer lifecycle."

Ms Krithpaka said the NIA will allow startups to pitch solutions for government project pain points. The winner, or selected applicants, will be guaranteed access to upcoming government projects.

All these methods will ensure Thai startups have the ability to scale globally, she added.