Thailand is becoming a hub for AI and medical technology innovation

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Venture capitalists are increasing their investment commitment in startups focused on artificial intelligence (AI), transformative digital healthcare and the emerging pink technology sector.

Industry experts say Thailand’s thriving healthcare, agriculture and tourism industries, as well as local companies’ continued investment in innovation, make the country a prime base for startups.

Large companies drive innovation by investing in technology, creating a dynamic ecosystem with practical applications and high demand for advanced solutions.

Andrew Ng, Managing General Partner of AI Fund and a world-renowned AI pioneer, highlighted the significant opportunities for AI applications in Thailand’s tourism, healthcare and agriculture sectors.

“I strongly believe that Thailand is an excellent place to apply AI, leveraging the country’s unique strengths.”

Ng added that the dynamism of Thailand’s AI and startup ecosystems is being boosted by the migration of developers and projects from large companies.

Startup Opportunities

AI Fund has partnered with KX Venture Capital (KXVC) to identify new startup opportunities, aiming to serve both the Thai and global markets. KXVC is the venture capital arm of Kasikorn Business-Technology Group (KBTG).

Ng expressed the fund’s interest in working with a variety of companies to solve industry problems with AI. The fund supports startups by starting with an initial idea, then validating it in the market and technically, recruiting a strong CEO, engaging deeply with customers to refine the concept, and building a product prototype. If the prototype shows promise, the fund will provide pre-seed capital for growth.

KBTG Chairman Ruangroj Poonpol noted the ubiquitous impact of artificial intelligence on everyday life and the active implementation of this technology by enterprises.

“2030 is predicted to be a turning point for an economic revolution driven by AI.”

Ruangroj added that domain AI is expected to dominate across industries. The economic impact of AI is expected to be monumental, contributing an estimated $15.7 trillion to global GDP, with Asia potentially seeing an increase of $1 trillion.

Ruangroj also said Thailand is well-positioned to become a leader in generative AI (GenAI). Both the public and private sectors in Thailand have shown great interest and early adoption of GenAI technology, which creates unique opportunities for local companies.

Medical technology boom

“The healthcare industry, valued at more than $9 trillion globally, is a colossal market that will only become more important in the years ahead.”

The first group of co-investment partners in the Disrupt Health Impact Fund include Digital Health Ventures (DHV), the innovation and venture arm of Samitivej Hospital Group, Thana Asset Co Ltd, Saha Pathana Inter-Holding Public Co Ltd and Sripatum University.

Thailand’s healthcare sector is experiencing a surge in innovation through AI, deep tech, and biotechnology. These technologies are revolutionizing healthcare, making it smarter and more efficient, challenging human biological limitations and solving complex problems through scientific advances.

Ruangroj has noticed significant growth in the global medical technology market, especially among people over the age of 65.

“Megatrends are changing the face of healthcare, which will create incredibly lucrative opportunities over the next decade.”

The global digital health sector is expected to reach $275 billion by 2031, preventive care $415 billion, self-care $26.5 billion, and holistic wellness $8.47 trillion by 2027.

Financing medical technologies

Ruangroj also mentioned that the health tech sector has high barriers to entry for newcomers. CB Insights reported that global digital health funding grew 48% quarter-on-quarter in the first quarter of this year, driven by large funding rounds for biotech startups and AI players.

Jantanarak Tuekaew, Managing Director of Disrupt Technology Venture Co., highlighted Thailand’s position as an Asian medical hub, supported by a solid healthcare infrastructure consisting of 1,300 public and private hospitals, as well as affordable fees that are 50-70% lower than in Western countries.

Jantanarak said his venture will invest in revenue-generating startups at pre-Series A and B stages.

“We are investing in the US, EU, Israel and Asia Pacific, with a target of $500,000-$2 million. Over the next three to five years, we plan to invest in 10-15 healthcare companies, both domestic and international.”

Sam Tansakul, Managing Director of Krungsri Finnovate, believes that investments in startups have declined in the past two to three years due to the difficult economic situation in the world.

“Venture capital firms will now be looking for profitable startups.”

Startups raising funds

In Thailand, most fundraising by local startups has been in the Series A round, not at the higher levels, Tansakul added. Finnovate has set up a new fund, Finno Efra Fund, worth 1.3 billion baht to invest in small startups in pre-Series A, in partnership with EfraStructure and Krungsri Finnovate.

In addition to providing capital, the fund will offer accelerator programs, mentors and knowledge sharing to help early-stage startups grow. Tansakul has seen growth in MarTech startups that create new tools to optimize marketing and reduce costs, as well as AI-based services, environmental, social and governance companies and industrial technology for manufacturing.

Tansakul also sees opportunities in the mobility space, particularly in the two-wheeled motorcycle industry, where Thais can import components for assembly and build faster, larger-capacity bikes. IT outsourcing services are also attractive, addressing the shortage of skilled resources in the face of digital transformation demands.

Although financial technology startups are unable to compete with banks, they still have a chance to grow in the area of ​​wealth management and payments.

Korawad Chearavanont, executive chairman and founder of AI solutions company Amity Solutions, stressed the need to hire talent who can develop and train GenAI agents. He suggested that developing the right skills could enable Thailand to play a significant role in the development of AI applications.

Amity Solutions and its parent company, Amity Corporation, recently raised $60 million in a Series C funding round.

Pink economy

Thailand could become a “pinktech” hub, tapping into untapped business opportunities for the LGBTQ community, according to Canvas Ventures Co Ltd, a venture capital firm for Multi-Family. Pinktech refers to technology and products tailored to the specific needs and interests of LGBTQIA2S+ members.

Tanachai Kulsomboonsin, co-founder of Canvas Ventures, said Thailand has one of the largest LGBTQIA2S+ populations in Southeast Asia, numbering around 7 million.

“Thailand’s pink economy is not just a niche, it is a growing market estimated to be worth billions of baht.”

The end of the “startup winter” is near, but many pinktech ventures are still focused on ideation rather than monetization, underscoring the need to move from passion-driven projects to sustainable businesses.

Tanachai cited a study by Thammasat AI Centre and Canvas Ventures International that found 47.4% of respondents consider LGBTQIA2S+ to be a significant and willing consumer base. However, 80% of local pinktech startups are in their early stages, brimming with ideas but needing mentoring and funding to grow.

“Investors can play a key role by providing guidance on financial modeling and market validation.”

The unmet needs of this community are a goldmine for innovative pinktech solutions. Despite investor interest, 88.9% have not yet invested in pinktech, according to the study.

Although the Thai government is open to supporting pink technology, concrete actions such as tax incentives, research funding and streamlined licensing processes are lacking.

Corporates in Thailand are increasingly embracing LGBTQIA2S+ inclusion, Tanachai said, but deeper commitment is needed.

“It’s not just about a rainbow logo, it’s about understanding the unique needs and challenges of communities. This can lead to innovative products, services and workplace policies that benefit both companies and the LGBTQIA2S+ community.”

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