The Stock Exchange of Thailand (SET) has officially introduced a blockchain-driven crowdfunding platform for startups in the country.
The recent crowdfunding marketplace from the SET known as LiVE is established on a blockchain that makes it possible for startups and small businesses to have access to funding from venture capital funds and institutional investors directly through peer-to-peer trading.
A statement from the SET explains that eight firms from both public and private sector have joined the platform during its introduction with an additional 50 firms planning to be part of the blockchain-driven funding platform.
The launch comes after the conclusion of a plan that was initiated in March 2017 when the SET announced its plans to run a marketplace that will be operated by a blockchain that will provide access to trading units. The present tool for small business and startups limits trading in board lots, or units of 100. During the time the plan was set, a SET official noted that close to 600 firms had registered with the stock exchange operator, showing interest to invest in a startup using blockchain technology.
“LiVE” platform has been developed with the use of blockchain technology as an infrastructure for participating businesses to expand and get connected with future alliances,” an excerpt from the announcement read.
Firms are required to be registered in Thailand and can qualify as an institutional investor, a venture capital investor, a corporate venture capital investor, or a specific investor with an yearly income if more than THB 4 million ($125,000), or combined assets worth over THB 50 million ($1.5 million) to be able to be part of the blockchain platform.
SET President Kesara Manchusree noted: “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. Businesses can utilize LiVE to promote to a wider target group while using the partnership to expand the customer base.”