A ‘unicorn’ is a business term to call startups with a business value over 1 billion US dollar, which many entrepreneurs aspire to achieve. Some of the world’s renowned startup unicorns include Airbnb, Grab, Snapchat, Pinterest, and Alipay. Before they were able to reach their level of development up to this point, they had to go through many stages of funding.
The path to reach the unicorn stage is not easy. Viable products and good business models may be some of the foundations for a strong startup; but in order to succeed, a startup needs other factors such as facilities, professional advice, startup funding in Thailand, knowledge, networks, supporting services, and many other facets of business development. Funding is one of the most important elements for startups to develop their products/services and expand their business. The levels of funding for startups are divided, depending on business values.
Here are the general levels of startup funding:
1. Seed Round
Business value 3-6 million US dollars (90-200 million Baht)
Seed round or Pre-series A is the basic level of funding for startups who have viable products/services and want to expand or develop to be more efficient and reach more customers. This group of startups generally needs to continuously improve their knowledge, explore more connections, and meet many investors for more funding opportunities.
2. Series A & B
Business value 10-60 million US dollars (300 million -1.8 billion Baht)
Series A & B is the next level of funding for startups who are looking to expand their customer base, change their business model, or launch new products/services. This group of startups is generally scaling, so they need professional consultants in various fields and venture capital firms to support them.
3. Series C
Business value over 100 million US dollars (more than 3 billion Baht)
Series C is a high-value funding suitable for startups who have already entered the international market or at least a regional market, and need funds to develop new technology to improve their products/services or even to acquire another company. This group of startups requires specialised advice and maybe incentives from the government to expand its business internationally.
For many startups, Series C is their final funding round as their businesses have reached maturity and can sustain themselves. However, some startups opt to continue to raise funds in Series D and E rounds. Some go on to have a business valuation of over 1 billion US dollars, which means they have achieved the level of being a unicorn.
With the establishment of True Digital Park as Thailand’s first startup ecosystem, we offer support to startups by giving more opportunity for them to raise their skill levels, seek networks, and expand their meetings with investors, in the hope of strengthening them for these funding rounds. Hopefully, we will see Thai startup unicorns soon.
For more information about VC funds in Thailand, contact True Digital Park to schedule a tour of our facilities and discuss the needs of your startup.