For many entrepreneurs, accessing VC funds in Thailand is their main initial goal in launching their startup. While it certainly won’t be a guarantee of success. Gaining funding can provide much-needed breathing room. It can also offer the ability to take the next step in developing the products and business structure that will ultimately be able to create a viable and robust company out of a fragile startup with a good idea.
But entrepreneurs also have to be aware of the cautions that come with an investment of VC capital. You have to ensure that the VC that is interested in investing in your startup truly understands your motivation, your products and services, and your overall goals for launching the company.
Unless you’re both on the same page, you’re setting yourself up for potholes and roadblocks all along the road to success. You have to understand the investment from the VC’s point of view as well as your own if you want the partnership to be successful and long-lasting.
Trust and Knowledge
Trust and knowledge should be the building blocks of your relationship before you’re awarded any VC funds in Thailand. Trust, in that you’re both confident that the other partner will provide what they’ve promised in the deal. And you both to know how to follow through to the satisfaction of both partners.
Accepting VC funds in Thailand always means that the entrepreneur will be both gaining something and losing something. They will gain the financial ability to realise their dreams, but they lose the autonomy to do this without any supervision. But by having trust and knowledge about the VC’s strengths in business, this loss of independence can work to your advantage.
The VC rarely wants to take over operations. A hands-free investment is preferable to a labour-intensive one. Once they get involved with day-to-day operations in anything other than an advisory capacity, their investment becomes problematic.
Strengths and Weaknesses
Both parties should bring clearly-defined strengths to the relationship and should accept their just as clearly-defined weaknesses as well for the relationship to work.
Regular communication with the VC builds a stronger and healthier relationship. They realise you’re young and don’t have experience in every aspect of the business world. But they’re investing in your idea, your reason for launching a startup. They don’t expect you to be the ideal businessman, but they’re willing to take a risk that you can do what you’ve promised.
From an entrepreneur’s perspective, making use of the VC funds in Thailand should also mean making use of their knowledge of technology as it relates to the business world, along with their depth of experience. It can increase the VC’s level of trust that they’ve made a sound investment. It can also increase the chances of them continuing to support your company through the years and making a concerted effort for you to achieve that much-coveted unicorn status.