A group of business entrepreneurs have created a new breed of startup company, funded by an angel investment network of 35 Thai affluent investors with a pool of capital investment of US$35 million.
The startup firm, Shift Ventures Co, does not possess any capital to start at the early stage like other conventional startups do.
The 35 angel investors will only start making an investment in a venture once Shift Ventures sees any growth potential.
Founded by three businessmen, Gavin Opaswongkarn, Wilert Orawanwong and Worawisut Pinyoyang, Shift Ventures has only 1 million baht in registered capital.
"The creation is aimed at strengthening the ecosystem of the local technology startups and small and medium-sized enterprises, to push them towards new the value-based economy model dubbed Thailand 4.0," said Mr Worawisut, who serves as managing partner at Shift Ventures.
Shift Ventures was formed to address the problem of startup companies who largely lack funding to expand their businesses, as most funding is seed investment provided to early-stage, high-potential growth companies.
Mr Worawisut said Shift Ventures is not a venture capital fund that asks angel investors to put their own finance into a startup company at an early stage. "We position ourselves as a business consulting and matchmaker for angel investors, startups and small companies," he said.
Shift Ventures will find businesses with high growth potential, then propose it to the angel investment network. Angel investors will decide how much they will investment in each, and they can be involved in managing the invested company.
Angel investors can also negotiate directly with the company they want to invest in, bypassing Shift Ventures.
Mr Worawisut said Shift Ventures will assist angel investors to assess the risk return profile of these companies before making an investment.
Shift Ventures will earn revenue via consulting fees plus a percentage of the total amount of money the startup can raise, he said.
Shift Ventures currently has 35 angel investors in its network, called the 1000x Club, led by Kongkiat Opaswongkarn, chief executive of Asia Plus Group Holdings, and Suvabha Charoenying, managing director of Thanachart Securities.
Other investors are Rit Thirakomen, chairman of MK Restaurants; Sura Kanittavikul, chief executive of Com7; and Worawut Oonjai, chief executive of COL, the operator of Central online marketplace.
Shift Venture will focus on investing in retail companies, food and beverage, property, healthcare, and technology-driven businesses in financial technology, travel and education.
Mr Worawisut said Shift Ventures has established a local startup network, called Founderhood Club, through a partnership with Growfish, a co-working space company, and FireOneOne, one of Thailand's leading tech startups.
The Founderhood Club will hold intensive training courses to provide basic knowledge on how to develop products.
Shift Ventures expects to invest in 10 startup companies within this year, said Mr Worawisut.