Management and governance of venture capital: A challenge for commercial bank

Venture capital (VC) improves the nation's innovative capacity by making investments in early stage businesses that offer high potential but high risk. This paper is concerned with the venture investment fund programmes in Thailand. In particular, the study describes and analyses the VC management of the Small and Medium Enterprise Development Bank of Thailand (SME Bank), the bank set up to help small businesses realise their entrepreneurial potential. Currently, SME Bank is gearing towards helping technology-based businesses create new innovations. The role of technology financing is the great challenge for SME Bank as the bank needs to garner the integrated financial and entrepreneurial support as well as a network of alliances. The paper proposes the model of VC management for changing the innovative environment to create the tech economy. Innovative initiatives at SME Bank would be useful for economies in other developing countries to launch programmes supporting the diffusion and commercialisation of innovations.