Thailand eyes crowdfunding

Thailand is hoping that crowdfunding could provide an alternative for small companies struggling to fund growth as banks cut back on lending.

Thai banks have tightened lending criteria as the economy falls short of government growth targets and the number of small- and medium-sized enterprises defaulting on loans rises.

The Securities and Exchange Commission expects to authorise the first Internet portal, that would match firms seeking funding with small equity investors, by the end of the year, Sarica Apiwatthakakul, director of intermediary licensing and SME financing department, said in a written response to questions on Friday.

A small number of crowdfunding portals already exist in Thailand, such as www.taejai.com and www.perdmuak.com, mostly raising funds for charity and rewards-based funding.