by Evan Sixtin
The Stock Exchange of Thailand (SET), with the help of the public and private sectors, has officially released its Launchpad and Investment Vehicle for Enterprises (LiVE), a blockchain-fueled crowdfunding platform built to fund Thailand startups and small and medium-sized enterprises.
SET Looks to the Future with Blockchain Tech
Following in the footsteps of the Australian Securities Exchange (ASX) and the Hong Kong Stock Exchange (HKEX), the SET, based in Bangkok, established Live Fin Corp Co. Ltd. where 99.99 percent of the shares are held by the SET. Its innovative creation, LiVE, the technical platform, built and based on a blockchain infrastructure, will provide Over-the-Counter (OTC) trading to assist startups and SMEs in Thailand to access capital funding.
Eight companies from business sectors such as Mobile Applications, Consumer Products, and Medical Equipment have already joined with over 50 more businesses to follow suit.
“SET is determined to offer growth opportunities through the creation of a complete startup ecosystem, inclusively from the business management education for startup and SME entrepreneurs to assistance in connecting with institutional and accredited investors. “LiVE” platform will be a key mechanism to help drive forward Thailand’s growth especially enabling startups and SMEs to have more financial accesses through crowdfunding,” explained SET President Kesara Manchusree.
“Businesses can utilize LiVE to promote to a wider target group while using partnership to expand customer base. In addition, this platform also offers opportunities for investors, both individual and corporate, who are qualified by the Securities and Exchange Commission (SEC) regulations, to select to invest in their preferred business with growth potential.”
Businesses Must be Audited to Join Blockchain Platform
There are a few rules and guidelines, however, which a business must conform to participate in this new blockchain-based platform. The first and foremost is that they have to be companies registered in Thailand.
Additionally, the founders and executives must carry no criminal records, and certified auditors must conduct a financial statement audit. More specifically, in order to raise over THB 20 million ($625,000), an eligible business must prove they have previously raised at least THB 5 million ($156,000), or be endorsed by a certified sponsor. For fundraising over THB 100 million ($3 million), financial statements audited by SEC-certified auditors must be presented.
Four types of investors will be accommodated: 1) Institutional investor, 2) Venture capital, 3) Corporate venture capital, and 4) Specific investor with an annual income of no less than THB 4 million ($125,000) or with combined assets worth at least THB 50 million ($1.5 million) and at least one year of investment experience.
The LiVE platform is just another example of the evolution of blockchain technology expanding at an unprecedented pace in a multitude of directions to increase convenience and expand access within the financial sector, as well as in almost every other public and private arena including real estate, education, and so many other areas of life.