SMART NATION- Bangkok Beta - Government meets design

Powered by Anix Lynchat the request of Board Committee of Digital Economy

Sep 2015

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@anixlynch

Engage. Minimum Viable Product. Disrupt!

Prototyping a new EconomyFinding “Best Practices” to build a “Tech Ecosystem” is easy. Problem comes from Localization, Prioritization and Engagement of all the right parties to really deliver on promises.

We are in the right place and the right time to prototype Smart Thailand 3.0 (Ver.1, aka ”Digital Economy”) Failure is part of a journey, but also a door to breakthroughs. The risk is highest if we do nothing.

Bangkok Beta

@anixlynch

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@anixlynch

IMPACT* 2025

of Thailand’s GDP’s contributed by tech startups (*+USD$19B) Valuation equals to 5% of current SET stock exchange value in 2015 (50B valuation)

Startups created

Scale-ups > $1B Valuation (Superstar)

Jobs created

Effect in Economy

Startups

Superstars

Jobs

Economic Impact

* Globalise LLC has created a model to assess the economic impact in the economy of tech startup While the model shows linearity and direct output based on input, this is unlikely to be the case due to the very nature of startups, where a black swan like Uber can add up to a valuation larger than all the other startups combined, so it is a numbers game that can change from one year to another. However the model helps us understand risk and reward mechanisms and help us make decisions.

43,000 jobs

1-2 Unicorns, 30 centaurs

2,500 startups created

20-50B USD, mostly from top unicorns.

Attraction of tech multinationals. New type of foreigner. Talent

growth for traditional enterprise. higher general productivity

5%Assumption:

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@anixlynch

Deep dive and test drive the key changes for Thailand

Regula*ons Capital Open  Market One  lead  agency Talents

Remove obstacles Add incentives

Early Stage accelerator and seed funding (>$20M USD) Sufficient follow-on round

(> $250M USD)

Capital for traditional companies R&D

2nd time entrepreneurs angel

investment: Smart Money

Angels: See SEIS program in UK

Registration/Exit market Diversity/Immigration

FDA/FTA/IP/R&D Investor protections Private Equity Laws

Intellectual Property Law enforcement

Ease of doing business

Low regulation zone (Drones, Sharing Economy, Bitcoin,

freedom of speech)

High transparency Lean operation

For entrepreneur by entrepreneur Centralized authority

No silos No redundancy

Shared mutual goal One stop shop

One Shared Goal: entrepreneurs first!

Why our most successful

entrepreneurs are setting up their holding

companies in HK or SG? and exit in Japan?

Homegrown. Imported (Engineer, talents)

Call back diaspora. STEM reform

Support Wannaprenuers Silicon Valley Ambassadors

Entrepreneur visa Risk Taking Culture

Maximize Research/University

English!

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@anixlynch

2025 Milestones

Plan pilot throughuser-led design,

Bangkok Beta MVP

2016

DIY dream team

>100 startups per yearHigh Volume of startups

2017

2018

2019

2020

2025Thai lead agency is

formedby alliance of private

sectors

High-profile investors decide to move to Thailand

Large companies set R&D centers in

Bangkok

Over 100,000 English speaking

engineers

2015

High volume of high quality

startups

Active trade sale ofdeals over $200M

Center of ”Agri Tech”“Mobile Tech”

“SE Tech”

Birth of “Google of Food”

Prefer AEC over China and India.

Entrepreneurship become a desirable

career choice

Phase 1: Expense. InvestmentFully support until ecosystem becomes self sustained

Phase 2: Revenue.

Social Impact

Futuristic and affordable co-working space

opens right in downtown BKKFull year-round

accelerators, events

Thai first unicorn

Corporate VCs/FTA are considered as alternatives to in-

house R&D

>$200M Fund of Funds are

announced on TechCrunch

Free English, STEM, Growth Hacking courses become

available

World class university setup in Bangkok

Thai unicorns become MNCs

Diaspora /Veteran mentors /2nd time entrepreneur

returns to be a force in the digital economy

Thailand launchesVC-friendly matching

scheme

Top 10 Ease of doing business index

Top 15 Ease of starting business index

Better ranked than Malaysia

AirBnb acquihireThai startup. Set

developer base in Bangkok to

dominate tourism sector

Visualize Thai new economy

“Thai entrepreneur visa” rank high in

Google’s search

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@anixlynch

Game on! UKGot $300K? Love FinTech? 3 years visa!

ChileGovernment gives away $40K

without taking equity!

ChinaHeavily subsidized. Tencent launched +

100M USD Corporate VC. Alibaba is

actively hiring female MBAs who speak

Chinese. Business can be started in 4 days.

Let’s skip HK!

JapanGree. Rakuten. Softbank set up offices in

the U.S. Abe PM sent 200 representatives

from Japanese old-fashioned companies

to the Valley to learn and later come back

to reform Japan.

Secure $93K and be recognized as

high potential startup to get 2 year visa

Ireland

SingaporeHungry for knowledge? MIT.

General Assembly. TechStars ,

JFDI. BASH, Plug n Play, ASTAR

CanadaPermanent Visa granted only by

securing $45K of grant from angel

investor.

MalaysiaMAGIC. Stanford, Grabtaxi!

Diasporas are welcomed!

“The Race” to attract the stars

Create 3 full time job to get 2 years

visa. No fancy business plan is

required.

New Zealand

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@anixlynch

Top 5 Winners

2015 USA

Singapore

Israel

Ireland

UKSource: Compass, Aug 2015

@anixlynch

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@anixlynch

Same as the World Cup..building an innovative country

is about battling for superstars..

Unicorn $1B+ in value

Centaurs $100M+ in value

Little Pony $10M+ in value

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@anixlynch

Real Madrid :Getting Google’s Full Attention?

2010

ENISA: Debt to startups and R&D of

Companies.

1000s companies funded

2011

2012

2013

2014

2015

First exitsedreams, buyvip

(amazon). Spain in the map.

FondICO to support VCs

2 year-old Wallapop become

the First unicorn

SpainStartup Manifesto

100,000 engineers per year.

New private universities and Hackademies

Start to think about Startups. Request of

law changes.

GoogleCampus setup in Madrid

TetuanValley, SeedRocket,

StartupBootcamp, Telefonica Wayra

accelerators

Free co-working spaces across the

country

UPM, UPC top engineering schools,

initiate startup competitions

IE, IESE, top MBA schools, initiate

startup competition

Free Legal support offices

Entrepreneur Visa

VCs setup in Spain, Barcelona: Kibo,

ActiveVP

Telefonica Amerigo 300m fund of funds

Diaspora back from 500startups, etc.

Mentorship.

Barcelona Mobile World Congress

Exodus of engineers to UK, USA, employees at top startups

Spain Startup Summit

2008

Law of Entrepreneurs.Ease to start a company

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@anixlynch

Silicon Valley - The Storyboard

’79-‘96

Led by Netscape Cisco, Apple+100 firms were active

’97-‘00

’01-‘08

’09-‘13

2014

2015

Xerox, Apple

Internetcommercialization

Semi-conductor Boom

+50 firms

Subprime Crisis

Circuit commercialized

Stanford, Nasa, HP, US Defense

Internet Bubble

50s-70s

Cold War

New Power Rule:+100 social media firms

Crowd wisdom. sharing economy,

casual T-Shirt

Harvard/MIT rejected offers from McKinsey

and JP Morgan to launch a start-up

UBERISMWe are an Uber of “—“

Add the word“Tech” on everythingFinTech, InsureTech, RetailTech, AdTech

HBO’s hit show “Silicon Valley”

FB - Oculus VR the future of

Mobile and TV?

Alibaba Biggest Ever IPO

Obama hired +140 Silicon Valley geeks

at White House!

Everyone wants to work at Google

YouTube disrupted schooling

Just “Google it!”

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@anixlynch

Israel:The Pioneer. The Coach

International Cooporation e.g SIIRD

Import goods exempt from BAT and indirect tax

Support R&D Centers of foreign companies

Employment Grants

Birth of technology applied by Google,

IBM, MicrosoftLaunch of Yozma program

Pre-competitive and long term R&D, e.g..

MAGNET, TLEM

Entrepreneurs and Government jointed effort in

building economic miracles

Tel Aviv University becomes an

innovation machine.

20% Investment grants. R&D and tax

benefits

World’s 2nd mostinnovative country

Pre-seed and seed program (e.g.

TNUFA, NIBN, Life Science Fund)

Eliat Free Trade Zone

Offer World-class Education

Found technologies for

earth sustainability

(Water, FoodCyber security, medical etc )

Inspire “Entrepreneurship”

around the world

Leader - Smart City

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@anixlynch

Singapore:

2002*

2006*

2008*

2010*

2014

2015

IDA (Government) run by American Tech

Business manSteve Leonard

No.1 Asia’s SMART NATION

Free IP

40M funded to regional VCs

Government opened startup

branch in Silicon Valley

Launch of I Jamand accelerators

Singapore startup received follow-on

investment by U.S top VC Sequoia >7x return

1995

Put Southeast Asia on the World’s Geek Map

Over $2B to attract top US VCs

Private EquityHedge Fund Law

reform

NOC Program by NUS

TIS Matching Scheme by National Research

Foundation

Free co-working space at Block 71 as “Singapore’s

Silicon Valley”

The 1st Exit

Top University set up campus in Singapore

Min Kian and Tony Tan started to

work on startupStarted ACE

Startup investment S$1.7B

S$8 M digital inclusion fund

Started IIPL’s iGazelle

One Stop Shopenterpriseone.gov.sg

MIT launched program in Singapore

Not workingTried again

97% access to computer

87% access to broadband

Japanese funds rushed to Singapore

>146,000 tech talents(corporate partner, NICF)

>8,800 data release to public as

data.gov.sg, OneMap.

*Estimated Year

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@anixlynch

Government is partially run by non-Singaporean,

business man, geeks and entrepreneurs

Big fishes and small fishes support each other.Healthy ecosystem

Free market. The more competitors the better.

Social Recognition

PM honors entrepreneurs and tech ecosystem contributors.VCs are recognized as

“Innovation Management Pro”

English!!

Expat over 5M. English is an official

language. Broken Singlish OK!

Ambassadors&Entrepreneurs to The Valley

FriendlyCompetition

Accumulation of small things that changed big thingsSingapore’s cultural makeover

Government Diversity & Informality

To learn, to bridge, to convince top VCs, MNCs, startups and diasporas to

start in Singapore.

“If Japanese can speak English, even broken English,.. Japan will leave Singapore and China in the dust”

Mikitani Hiroshi, Rakuten CEO,

Abenomics Advisory Board ”Power to Compete”. April 2015

“Entrepreneurs are the modern age Warriors”

Lee Kuan Yew Lee Kuan Yew: The Grand Master's Insights on China,

the United States, and the World, February 2013

“it’s not just of talent but of insatiable questioning of authority, of determined informality”

Senor, Dan; Singer, Saul Start-up Nation: The Story of Israel's Economic

Miracle ”, September 2011

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@anixlynch

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@anixlynch

Partially agreed. Not sure

Thailand-only headache

Only genius knows (Breakthrough opportunities here!)

Low Hanging Fruit- Proven solutions

Most solutions are already known and provenRide the learning curve of others

Focus on “Low Hanging Fruit” (LHF) execution

Re-group short/mid/long term solutions

1 year3-5 years

10 yearsLHFs

Partially AgreedOnly genius knows

Thailand-only headache

166 month-bangkok beta

Assemble Dream TeamGearing  team  5  people  to  Plan.Do.  

Research.  (1  month)  

PreparaBon  closely  with  True.    

Set  advanced  assumpBons  (5  keys)  

 to  finalize  Advisory  Panel  members    

Engage  3rd  party  facilitators  

,secretary  team  (Legal,  Finance)  

and  government.  

1st MVPWrap  up    

2nd  MVP  prep    

(1  month)  

Executors  and  stakeholders  

incenBves  design.  

Engage.  

Keep  the  momentum  going!      

PrototypingImplement    LHFs  

Test  drive  (4  months)    

Re-­‐assess  (1  month)

Design Lab 3 daysPanel  and  gear  team  to  deep  

dive  into  5  keys  challenges.    

Re-­‐group  problems.    

Re-­‐adjust  Bmeline/KPI/

Milestones  

Engage  executors  

Set  budget  to  execute  LHFs

@anixlynch

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@anixlynch

With  ecosystem  building  

experience    in:  

USA,  France,  Spain,  UK,  

Israel,    Malaysia,  

Singapore,  Indonesia,  

Ireland,  Japan

5 champions each from each quadrant, breakdown into small diversified groups each to tackle 5 key challenges for 3 days in Bangkok, facilitated by world-class facilitator

Mix of advisory panel to come to BKK

GovernmentsSingapore.  Thailand.  Israel

Academics

Private  MNCs    +  Tech  Entrepreneurs

VCs/Accelerators

MREP  MIT  (Entrepreneurship)  

Tel  Aviv  (Tech)  

Chicago  (Economics,  Public  Policy)  

NUS  (Block  71)  

Sasin  or  KMUTT  (LocalizaBon)  

Khaffman(VC  Investment)

From  pony  to  unicorn,  both  

domesBc  and  overseas.  MNCs  

Khun  Supachai

\

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@anixlynch

- Great research. Cool stats. Nice presentation. - Analytics of public data by management experts. - Limited implementation - End Product = Research and recommendation - Less interactive learning process - Relying on top down - One size fits all. - Project can be abandoned due to low engagement

- Strategic influence. 6 month beta. Low Hanging Fruit first. - Analytics by ecosystem experts/entrepreneurs - Motivate executors through ownership of solutions. - Localization and country fit-focused - End Product= Champions who can potentially run. MVP - Grow what works. Repeat - Impact through interactive process. - Facilitated by world’s top tier executive academics - Localized by experts with experience with Thai governments - Executor-thinker. Bottom up. - Ecosystem building experience over 15 years. - Proven record of execution

Traditional Our approach

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@anixlynch

To be disclosed and selected after project assignment. Daily rate/Flights of advisory panels are included Advisory Panel/Potential Operators (N= 20)

SAMPLE  FRAMEWORK

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Insert your picture here!

LEGACY!

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@anixlynch

SAMPLE  KEY  CHALLENGES  ASSESSMENT  (TALENT)

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SAMPLE  CURRENT  MARKET  ANALYSIS

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@anixlynch

SAMPLE  COUNTRY  FIT  ANALYSIS

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@anixlynch

SAMPLE  GDP  IMPACT  ASSESSMENT

* Globalise LLC has created a model to assess the economic impact in the economy of tech startup While the model shows linearity and direct output based on input, this is unlikely to be the case due to the very nature of startups, where a black swan like Uber can add up to a valuation larger than all the other startups combined, so it is a numbers game that can change from one year to another. However the model helps us understand risk and reward mechanisms and help us make decisions.

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Some of the below items can potentially be managed through ground level change, but also effective public relations exercises. The first item, for example, is not going to change overnight. That said, the policy of attracting in-bound investment, for example, has been a stable policy despite changes in government. This message can be underscored in communications about the proposed program. An equally important communication may be that many of the macro political and economic factors referenced below will be addressed for the program, by putting in place effective counter measures. That is, ring-fencing the program with effective governmental controls, private sector involvement, governance etc. In short, the program becomes an example of what Thailand CAN do, with the effectiveness of the program (governance etc.) expanding out across the economy generally in terms of private sector activity and governmental behaviours. Structuring an effective program in a new and limited sector is easier than changing an entire economy and political framework.

1. Political and policy instability

(a) This will negatively impact the ability to attract capital; venture capital, in particular.

(b) Overly interventionist, policy driven governments – particularly one that is military – are of concern to investors, as such intervention distorts market efficiency and predictability (witness the current concern over China). There is a need to underscore policy consistency in Thailand, and a government focused on facilitating the investment / tech ecosystem, with private sector involvement in picking the “winners”.

(c) The concomitant security concern also:

(i) creates additional investment risk that impacts both the willingness to invest, and pricing; and

(ii) is a disincentive to attract and retain talented human capital.

(d) It should be highlighted, however, that despite the lack of political stability, there has been relative policy stability in respect of investment and the innovation.

2. Excessive red tape and lack of transparency

(a) Although Thailand has improved its global competitiveness ranking, “inefficient government bureaucracy” is still ranked highly as the most problematic factor for doing business in Thailand.

(b) Bureaucracy, especially if lacking in transparency is a disincentive to invest or locate in a country due to the increased set up costs and the perceived risk of uncertainty.

(c) There are a number of organisations in Thailand involved in innovation type activities – both government departments and private sector. A central coordinating authority should greatly improve economic and administrative delivery efficiencies and transparency.

3. Failure to attract and retain human capital

(a) Lack of repatriation incentives for Thai expats with relevant experience overseas

(b) Lack of incentives to attract foreign workers with relevant experience

(c) Complexity / unwarranted hurdles in obtaining a VISA

4. Failure to continue and expand improvement in the legal / regulatory regime in Thailand

(a) Corruption, is a significant concern amongst investors and businesses that might seek to locate in Thailand.

(b) Lack of adequate intellectual property protection is also a concern, particularly if the innovation focus is on business that are largely driven by development of intellectual property. Singapore’s IP regime is a strong incentive to technology-based start-ups to locate there, along with the attractive tax regime around IP.

5. Failure to distinguish itself from competitor markets: Singapore, U.S., Israel, and hence losing the competitive battle

(a) In short, Thailand needs to be seen as either best in class against what Singapore, the U.S. and Israel do, or as a viable alternative because of what it can offer that the others do not (or cannot). Examples of this might be: a strong relationship with China and Chinese capital, a gateway to South East Asia

Ibid., p.360. See fn 4. Thailand scores 38 on Transparency International’s Corruption Perception Index 2014, https://www.transparency.org/cpi2014/results, sighted 28 July 2015. “0” being highly corrupt and “100” being very clean. By comparison in the Asia Pacific region, Indonesia scores 34, China 36, Sri Lanka 38, Malaysia 52, Hong Kong 74, Japan 76, Australia 80 and Singapore 84. Thailand’s score of 38 is a marginal worsening from its score of 35 in 2013 and 37 in 2012. Relative to other countries, however, it has raised its ranking to 85 out of 174 countries, from 102 in 2013. Corruption ranks as the number one most problematic factor for doing business in Thailand: World Economic Forum, Op. Cit.1. p.360. Thailand ranks 104 out of 144 countries for intellectual property protection, with a score of 3.1 out of 7: World Economic Forum, Op. Cit.1., p.361. Singapore, on the other hand, ranks at 2. See: EY Global Tax Insights, “As and IP Hub, Singapore Can Offer More”, https://taxinsights.ey-vx.com/archive/archive-articles/as-an-ip-hub-singapore-can-offer-more.aspx, sighted 28 July 2015.

Barrier to delivery& Disclaimer

SMART NATION- Bangkok BetaYou don’t have to be great to start, you have to start to be great