Startup | Startup Thailand

Tag: Startup

  • EdTech Is On A Rise

    The preventive measures to contain Covid-19 have changed the landscape of the education and while the outbreak creates opportunities for EdTech startups, venture capital suggests that the auspicious online platforms must encompass entertainment and education.

  • 8 Tips: How Startups Can Survive The COVID-19 Economic Crisis

    For startups, this will be a particularly difficult time. In the recessions of 1982, 2000, and 2008, funding for startups dried up. While many have heard me say that great startups are often created during market downturns — sometimes, easier said than done. Survive This is pretty obvious. If you don’t survive, there is no upside. So all of the strategies below are about survival. It is time to put aside the wonderful plans to become a huge company with world-beating products. None of this matters if you don’t survive. Cash is king Startups don’t generally die for a lack of ideas. They die because they run out of cash. Put in place a plan to conserve cash. Be aggressive in this plan; early action will be much more impactful than later action. Have at least 12 months of cash on hand, because it is likely that is what you will need. Even if the COVID-19 crisis resolves itself much sooner than that, the turmoil left in its wake will persist, particularly for startup. Forget about raising money Angels will continue to invest, but expect smaller rounds, at lower valuation, in companies that don’t require large amounts of cash. For existing portfolio companies, the sudden downturn in the market, coupled with the disruption of almost all business as usual will cause fundings to stall. While VCs and angel investors might have cash to invest, the pullback will trigger a triage mode (as it did in previous downturns), where investments will be in select companies. Even some good companies won’t get financed. Assume that this pullback will last until after the COVID-19 crisis is over and add a few months to that for them to get back on their feet. M&A will dry up; if you were in discussions last month, expect that nothing will happen until this crisis ends. If you are lucky, you might get your existing angel investors to help carry you a bit, but expect it to be really costly and only if you have a plan to make the money last a long time. And, as I believe is always prudent, communicate well with you shareholders, giving them the bad news and the good. Revenue is likely to be curtailed If you are counting on contracts in the pipeline to close, you shouldn’t. Most big companies, government clients, and especially small and medium businesses will also go into survival mode. Unless you are supplying a product or service that they consider absolutely mission-critical, you should expect that revenue will be deferred for at least six months and probably longer. If you existing contracts have cancellation clauses, expect that some will be exercised. Opportunities If you have a way to shift some or all of your business to be part of a solution to the COVID-19 problem, stay alert to do so. For example, even as GM is closing plants, it is looking at how to make ventilators and respirators. While there will be great economic dislocation that affects small and large businesses, there are still some opportunities, especially for direct-to-consumer businesses. People are sheltering at home and online a lot. If you are selling something that will make their lives better during this difficult period, there are opportunities. Examples might be things like online learning or classes, online consulting, or even things that bring a smile in these difficult times. Similarly, any product or service that makes working from home easier will have a ready market (if your customers can find you online). Downsize While this is a really difficult decision, survival is the single most important thing. Many companies will have to pare back to the essential. Salaries will need to be slashed (as they were in 2000 and 2008), if companies will survive. While the pandemic will certainly curtail travel, make that a policy. Cut all contract help that can be cut. Cut marketing and sales spend until your customers are back to work and buying once more. Again, any step that cuts your burn early on, will have a lasting impact on the later cash balance and your cash horizon. Non-equity cash raise Look for sources of cash that are non-equity. Think of ways to get government grants. Explore the SBA programs that have been put in place to help small businesses. Be creative about finding sources of cash to stay alive, including potentially doing some short-term deals that help the immediate crunch. These are things that you would never have considered doing three months ago. Stay alert for the inflection point As with almost all things in life, this too will pass. It is hard to tell what the country and market will look like when this is past, but if your company is alive and flexible, there will be great opportunities. Watch for it, since none of us can predict when it will happen. Reference: LinkedIn, Dan Rosen, chairman of Seattle-based startup investment group Alliance of Angels.

  • NIA Joins Hands With Banks To Back Struggling Startups

    NIA together with state banks will provide loans with zero interest for tech startups and allocates 50 million baht to support innovative entrepreneurs that are focusing on coping with the Covid-19 outbreak.

  • Unicorn Layoffs Keep Piling Up As The Economy Gets Worse

    The backdrop for today’s layoffs is a faltering American economy. Home builder confidence recorded the “biggest drop in history,” while retail sales fell 8.7% in March, what CNBC noted was “the most ever in government data,” and CNN Business reported that American factories’ output fell 5.4% in March, “their steepest one-month slowdown since 1946.”

  • NIA-NSTDA And Thai Startups Visit Huawei In China

    During March 11-12, 2019, the MOST Startup working group of Science and Technology Ministry, led by National Innovation Agency (Public Organization) or NIA and National Science and Technology Development Agency (NSTDA) together with the winning teams of Startup Thailand Pitching Challenge 2018 visited the operation of Huawei Technologies in China.

  • Thai startups proposed 7 guidelines to the government to make Thailand a ‘Startup Nation”

    More than 600 Thai startups has recently joined together to propose seven guidelines to the government in a bid to push Thailand a ‘Startup Nation’ and enhance competitiveness of Thai startups to compete with other countries. The goal is to make the economic impact by 5% of Thailand’s gross domestic product (GDP), create 50,000 jobs and increase the number of innovative start-ups to more than a thousand.

  • NIA and CEA join force to accelerate startups

    Thailand and Australia are tightening relationship through the collaboration of National Innovation Agency (NIA) and QUT Creative Enterprise Australia (CEA) of Australia in supporting innovation entrepreneurs of both countries.