INVESTOR DECK UPDATED ON 09/05/17
We aim to fostor innovation in the healthcare industry. The fundamentals of our business are based on the intention to develop a better environment, especially for researchers and innovators in the medical field, to help them get their projects off the ground. In Thailand, people with great ideas often find it difficult to translate their projects into tangibles. Many projects start off with good intentions only to fall by the wayside because of the hurdles in the process—be it acquiring funding, a research grant or other problems. Ruckdee believes research can play a critical role in achieving successful outcomes in the Thai medical industry that can benefit Thai society generally. In supporting the research community, we provide the following:
We have carefully developed Ruckdee as a model that supports project creators from an early stage. We help groom the business, suggest the best funding model, help execute the funding plan and support the project until it is launched. We also follow up on the progress of the project to ensure investor satisfaction.
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We bring in more diversified investment and more involvement from the private sector, either institutional or from individuals.
We strengthen communication channels within the community.
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We improve incentives for project creators, allowing them to retain their ownership whilst obtaining vital funding.
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OUR VISION We intend to address the deficiencies in investment into the future of healthcare innovation. Seeing the lack of attention in developing or commercializing healthcare researches, Ruckdee believes there needs to be a channel for opportunist investors to be able to explore the industry with ease. We provide a channel for investment into healthcare projects through “www.ruckdee.com�. We screen projects heavily to ensure the platform serves its original proposes of fostering innovation. To help investors understand the complexities of each project, Ruckdee gathers advices which can reflect all facets of the project, and digest it into a comprehensible piece of information. The digest informs investors about the risks and returns, to help investors select the type of investment suitable to their needs. Our revenue comes from the following:
Services Fee Profit sharing Commissions on fund raised
RUCKDEE is where healthcare meets business. Page 4
How can we help Ruckdee operates as a Consultancy + Investment channel
Seeing information asymmetry between the two, we work on facilitating conversations between investors and project creators.
Services to investors From the investor side, what differentiates us from other platforms is that investors get the assurance of the authenticity, feasibility and validity of the projects they are investing in from our trusted assessment service.
Services to creators From the project creators’ perspective, what they lack is not only funding but also market understanding and business expertise. We help groom their ideas, and assist them where necessary to successfully evolve their business.
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industry overview
THAI HEALTHCARE With core focus being Healthcare industry, we take careful assessment of its potential while positioning ourselves as an alternative source of support to the industry’s traditional space and its extension.
In Thailand, healthcare is a promising industry. The industry is expected to grow from THB841.2bn (US$24.6bn) in 2015 to THB892.3bn (US$25.2bn) in 2016: +6.1% in local currency. This projection is supported by the country’s aggregating demand for medical services and its increasing popularity as a medical tourism destination. Healthcare professionals also see opportunities in expanding into neighboring frontier markets, specially Myanmar and Vietnam.
Despite positive growth prospect, the main problem facing the industry is the lack of human resources and medical supplies. We therefore see the opportunity in tapping into innovation in traditional healthcare services and the forthcoming self-care innovation.
Number of Hospital Beds per 10,000 population
THAILAND HEALTHCARE SPENDING (% of GDP)
20
YEAR 2013
Number of DOCTORS per 10,000 population
4
Private Healthcare Expenditure Government Healthcare Expenditure
2013
10.5
2014 2015 Source: Economist Intelligence Unit, WHO
3.4
11.4
3.7 12.5
4.0
megatrends healthcare 1. AGING-POPULATION While in the middle of transition, Thailand is facing new challenges and opportunities in preparation for aging population. With the Second National Plan for Older Person (20022021) running, Thai government’s policies mainly focuses on supporting elder people, building aging-friendly society as followed: The government is urging businesses to hire more elder people to increase workforce on productivity, as well as limiting the rise in the cost of its modest pension scheme. The retirement age is considered to be extended in some sectors, which would benefit both senior employees and their organizations. New National Pension Act, created by the Civil Society Network on National Pension, is expected to be proposed and take place in 2017. This can guarantee the income security among the elders and improve the pension system, increasing the benefit for elders. Promoting the living of the elders, health services are provided through networks of health centers and primary care units run by The Ministry of Public Health (MoPH) Community health centers, which are available only in Bangkok, are generally staffed by 1-3 physicians and allied personnel. These centers provide curative, preventive and promotive but rarely on rehabilitative services.
By ranked third most rapidly aging population, Thailand currently moving into aging society. There are 15.8 percentage of total population which is over 60 years old and the number is expected to be increased into 37.1 by 2050 due to declining fertility rate and increasing life expectancy. Meanwhile, the working age population is expected to decrease around 11 percentage of a share of the total population by 2040. That means more Thai elders who will work daily.
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2. healthcare logistics According to Healthcare Supply Chain Excellence Centre (LogHealth), the major problem found in the healthcare supply chain is that there is no intermediates between the suppliers and the hospitals/ end-customers. Drug codes, standard languages and data format are diverse among the stakeholders. There is also no medium which can provide data transfer service among all stakeholders. With that, the whole supply chain problems are needed to be solved.
Model of the healthcare supply chain
Currently, Global Trade Item Number (GTIN) with GS1 standard code was introduced and 2,170 drugs were successfully registered into data pool, called DRUGNET, in 2015. Hospitals are now able to transfer Purchase Order (PO) and Advanced Shipment Notices (ASN) electronic data to the suppliers. LogHealth is also developing HC Link, a web application which provides Electronic Data Interchange (EDI), Vendor-managed inventory (VMI) and traceability. Supply Chain Traceability system and EDI, however, are still in middle of system testing. When the whole system is ready, drug database, along with data link system, will be available for all Thai players. The system will also reduce drug management cost and increase patient safety. With the data centralization system, the obtained data can be used in analysis or decision for better policies on national drug management.
3. digital healthcare In Thailand, there are various kinds of healthcare technology (HealthTech) startups established with different technologies, services, objectives, targets, roles, etc. These startups, however, share the same objective on disrupting the industry with their technologies. Health Tech Startup Thailand is a community consisting of HealthTech startup entrepreneurs and young changemakers who have their interests on healthcare technologies. This community is established in order to share the interesting information and keeping the connection between the startups. There are totally 16 startups in the community, categorized by their services, as below:
Reported by Startup Health in 2016: The Health Moonshot Movement, health sector was still keep rising in funding. More than 200 new investors from various institutions put their fund into health sector. Over 8 billion dollars were invested only in over 500 digital health companies, supporting from seed round to series A. Although the funding was sometimes slowed on the certain month, the trend still keep rising. Patient/Consumer Experience and Wellness were the top two most-funded subsectors, able to raise fund over a billion dollars
There are abundant of opportunities available in Thai healthcare industry, which allows the digital health companies to grow. However, the industry’s ecosystem still lacks of proper policies, medical law regulation, data standardization, medical information sharing and other issues supporting the growth of the companies. The entrepreneurs also have a hard time proving the technology to the customers and raising their funding. Digital health funding and deal count from 2010 – 2016 reported by StartupHealth
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4. Healthcare-related Industries - tourism Thailand medical tourism was initiated in 2003. As Thailand was well-known as a medical hub, there were estimated 2.53 million foreign patients coming to Thailand in 2012 for medical treatment, generating income of 4.9 billion dollars. The number was then increased into 2.81 million in 2015, generating 3 billion dollars. Thai healthcare remains competitive in terms of high quality certified medical service, experienced physicians and affordable price. Medical tourism is expected to be one of the main drivers for private hospital investment in the future. The government is looking for ways to support the development of medical tourism by having more local hospitals upgraded to meet international standards and to find ways of offering medical care to foreign tourists who become sick while travelling. Investments in medical tourism are concentrated in high tourist areas like urbanized Tier 2 cities, not just Bangkok as the sole market.
- food & agriculture A number of researches show that agriculture and food supply chain can affect people’s health issues, which are the cause of nutrition-related chronic diseases. To promote the wellbeing and community health, collaboration with health sectors is made to develop a sustainable food system. Healthy Food in Health Care Pledge is a framework that outlines steps to be taken by the healthcare industry with campaigns to support sustainable agriculture, reduce food waste and improve nutritional quality. As improving food quality is one of the biggest keys to better health, Food Insecurity Nutrition Incentive (FINI) provides grants to community organizations seeking to increase healthy food purchases by lowincome consumers. Unable to know what ingredient in what you eat, TellSpec develops a hand-held food scanner which is able to inform specific ingredients and macronutrients in our food through spectroscopy, preventing any contaminants and food allergies. By tracking calorie intake, the acquired data can be also used for food quality control and analysis, which is available on the users’ smartphone. In Thailand, agricultural authorities in Thailand, collaborating with IBM and FXA group, has launched a tracing system where food can be identified throughout the supply chain. IBM’s InfoSphere Traceability Server will be included in the system to trace down agricultural products produced in the country via barcodes and radio frequency identification (RFID).
- PROPERTY As aging society is coming closer, many solutions are brought up in order to support the future elders. Home Farm was the conceptual project of city-living in Singapore. With the combination of vertical-farming and living or future retirees, SPARK Company designed an apartment with farming ecosystem in order to support them and solve food security. Home Farm was awarded with Best Future-Experiment Project from World Architecture Festival in 2015. San Suk Smart City is a municipal project of San Suk council, known as the first smart city in Thailand. This project aims on improving the elders’ wellbeing in the area. In cooperation with Dell, Intel and IOT City Innovation Center, Intel technology-based IoT platform is introduced in Smart Healthcare system. This allows the physician to remote monitoring via wearable devices’ real-time data acquisition, which is stored in Cloud database. The elders’ data and insight from the system give the physician an efficient solution for emergency treatment. After proving the project’s possibility, its solution will be used in development of other smart city applications. Thai government also came up with the project ‘Senior Complex’ with the aim to improve life quality of the elders and reduce caring expense. Senior complex consisted of 3 zones: Hospice, Senior Housing and Nursing Home. The project is expected to start after receiving property allowance from Treasury Department.
5. PREVENTIVE MEDICINE More people are aware of health issues. Instead of waiting for the disease, being preventative and maintaining good health are the choices they make. Preventive medicine can be divided into three types of prevention, from vaccination, health counselling, screening tests, monitoring to disease management activities for adopting healthier lifestyle. In United State, many promotion and awareness programs have been set up by the government in order to promote the importance of preventive medicine. Early diagnosis and prevention reduces burden on other healthcare services. Being cost-effective, vaccination and health counselling programs have been supported in order to lower healthcare spending. Self-monitoring devices, as well as wearable electronic health trackers, will hold the key as they can conduct the test at their places.
According to Global Wellness Economy Monitor, global wellness industries had risen into 3.7 trillion dollars in 2015, which 999 billion went into Beauty & Anti-Aging and 563 billion went to Wellness Tourism. In Thailand, expenditure on wellness tourism grew up to 9.4 billion dollars, increasing annual growth from 2013 by 8.5%. This incident corresponded with increasing wellness trips by 1.5 million. Thailand was ranked 13th on Wellness Tourism markets.
Currently, there are wellness centers available in some Thai private hospitals such as Bumrungrad, Samittivej, Nonthavej, etc. However, there are few of them established in separation with the hospitals. They are also available only in Bangkok and Tier 2 cities, implying the accessibility of the customers. Thailand is claimed as the premier destination for anti-aging tourism, since it has the best technology and the most innovative Anti-Aging treatment programs. Thailand also has a wide variety of anti-aging and aesthetic clinic facilities in Bangkok and some tourist-attracted cities like Chiang Mai, Pattaya, Phuket, etc. Along with american board-certified anti-aging doctors, the customers are able to ensure about the medical standards. Page 14
Regulation Environment Although Thai government welcomes and encourages foreign investments, there are several foreign equity restrictions and Thai participation requirements that investors may need to consider to avoid possible inhibition. Foreign investment is supervised by a range of legislation, cabinet policies, trade association regulations, laws and other controls. Investors consider investing in Ruckdee or projects on Ruckdee may enquire into the followings: Foreign Business Act The scope of foreign participation in business activities in Thailand is under the supervision of The Foreign Business Act (FBA). The FBA prohibits foreigners, unless they are otherwise exempt, from participating in specified business activities and requires certificates or licenses to be obtained before engaging in such activities. The prohibition covers around 50 types of businesses. In practice, it is often possible for foreign business to participate in businesses by having the right proportion of ownership structure, voting rights or control of any kind.
Relevance: The FBA may apply when investing into projects
listed on Ruckdee through equity model. Ruckdee will publish the details and the allowance of foreign participation in each project through Ruckdee.com.
Financial Institution Business According to the Financial Institution Business Act (FIBA), B.E. 2551 (2008), shares of the company’s operating business related to financial institution that are owned by foreigners shall not exceed 25% of the total shares, and at least 75% of directors must be Thai.
Relevance: It remains unclear whether FIBA may affect foreign investment
into Ruckdee, as it is considered a funding channel, specially through equity and lending model. From our talk with the Security Exchange Commission, we have been confirmed that they are working on introducing a specific law for crowdfunding platforms. Currently we are aware that it is safest to raise fund without exceeding the above restriction. We are following this evolving regulatory environment with close attention.
securities law and regulation Transaction of securities is governed by the Securities and Exchange Act (SEA). The act sets Security Exchange Commission (SEC) as the regulator of the Thai Capital Market. Activities under the supervision of SEC include securitization, derivatives, and other equity or securities related activities.
Relevance: SEA only applies to security traded in primary and secondary markets. The
two markets deal with companies looking into making public offering or listed companies. Crowdfunding places new challenges for the SEC, as its operation is in gray area. However, for Thailand, SEC has expressed interest in governing equity crowdfunding activities and promised to issue regulations in support of the service within Q3 2016.
Distribution of Profit to Overseas The Civil Commercial Code (CCC) is the fundamental law that govern businesses’ operation. Section 1201 of the CCC supervises that the distribution of a dividend can only be made out of profit. A company must maintain reserve fund of 10% of its registered share capital. The distribution of profit to overseas may subject to Thai Exchange Control Law. Companies can conduct each remittance of funds for the repayments of loan to abroad or the remittance of capital to overseas investors, with an authorized juristic person. Required documents are such as the shareholder list, the sale and purchase agreement, written evidence of the loan and also the Foreign Exchange Transaction Form.
Relevance: The law lays out processes for the remittance of profit to foreign investors. This will apply to investors investing in equity, and royalty model.
Intellectual Property Thailand Intellectual Property protection is currently covered by three main laws which are the Trademark Act, the Patent Act, and the Copyright Act. The laws cover plant varieties, layout design of integrated circuits, and trade secrets. Thailand is member of the the World Trade Organization (WTO) and the Patent Cooperation Treaty (PCT), aligning the country’s intellectual protection effort with international standards.
Relevance: Many projects listed on Ruckdee introduce new concepts and may
seek for the protection from the laws. Ruckdee encourages project owners to obtain intellectual protection in all cases.
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KANAWAT CHANTARALAWAN, MD (EGG) Founder * Work experience * Department of Ophthalmology, King Chulalongkorn Memorial Hospital Bangkok, Thailand 2015-Present Resident Ophthalmologist Queen Savang Vadhana Memorial Hospital , Chonburi, Thailand 2014-2015 General Practitioner Harvard Medical School, Boston, Massachusetts, USA, 2012-2014 Vaccine and Immunotherapy Center/ 2012-2014 Massachusetts General Hospital Research Fellow * Education * Faculty of Medicine, Chulalongkorn University, Bangkok, Thailand
2007-2012
Prince Mahidol Award, Youth program Scholar
2012
Assist. Prof. KARNDEE LEOPAIROTE, PhD (AOR) Opportunity creator/ Strategic partner * Work experience * C-Asean Managing Director
- Present
* Previous experience * Executive Director of Future Innovative Thailand Institute (FIT) Advisor to Software Industry Promotion Agency (SIPA) Advisor to Deputy Minister of Commerce on Creative Economy Policy and Initiative National Sub-Committee, Creative Economy Policy and Initiative Thailand Competitiveness Committee, NESDB Head of Operations Management Department, Thammasat Business School, Thammasat University Executive Director, Thammasat Business Consulting Center (TBCC), Thammasat University Director and Program Advisor, Master in Service Innovation (MSI), College of Innovation, Thammasat University
paddy tan Startup doctor * Work experience * InterVentures (Singapore) Founder BST Consulting (Singapore/Hong Kong) CEO & Executive Director Integrated Chinese Medicine Holdings Limited (Hong Kong) Tech Advisor BASH (Singapore) Mentor * Previous experience * 1st Vice President of Mobile Alliance (Singapore) CEO & Founder of BAK2u (Singapore) CEO of TheFoundersCamp (Singapore) Director of Europe Connect (Singapore) Country Manager of Interactife (Singapore/Hong Kong) Business Development Engineer of Solectron Technology (Singapore)
PEERAPAT JATUKANNYAPRATEEP (PEACH)
PEEYAPAT RABIEB (DREW)
* Work experience * Bangkok Bank PCL 2015-Present Investment Banking Analyst
* Work experience * Asia Group Advisors Analyst
Chiang Mai University Lecturer in Economics * Education * CASS Business School, UK MSc Financial Mathematics
2012-2015
2011-2012
London School of Economics, UK 2010-2011 MSc Econometrics and Mathematical Economics University of Essex, UK BSc Economics
2007-2010
2016-Present
Bank of Thailand Assistant to Chairman
2014-2015
PTTEP PCL Intern
2013
Google/iLaw Google Fellow
2012
* Education * University College London, UK MA Economics and Business
2012-2014
Chulalongkorn University, Thailand 2008-2012 BA International Relations/Business Psychology
RARIN AUWATTANAMONGKoL (ZINE) * Work experience * Freelance Graphic Designer 2013-Present - Graphic Designer, Buriram Supply - Junior Creative, Area SE1 School Agency - Social Media analyst, The National Theatre - Event Marketer, Disclosure-Island record * Education * London College of Communication, UK 2014-2015 MA Advertising University of Nottingham, UK BMedSci Medical Science
2007-2010
ADVISORY BOARD Ms. Manida Zinmerman Hunton & Williams LLP Partner Mr. Trirat Chatkaew SSC IT Group CEO Mr. Axel Winter Standard Chartered Bank Global head, Retail bank architecture Mr. Prin Panichpakdi Credit Lyonnais Securities Asia (Thailand) Managing Director
operative team
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Our clients Ruckdee partners span medical & healthcare institutions, corporate strategic partners, and venture capital firms — they’re our allies who provide our companies and healthtech startups with varied perspectives and strategic insights on the healthcare industry. But the most valuable service we offer actually isn’t provided by us, it is truly the community of founders, innovators and those who heartly wish to see Thailand a healthier place by our own hands. We are incredibly fortunate that most successful founders working with us are willing to give the most back to the ecosystem, also helping to pave the way for the new ones. We work together to support one another on this journey to build a better healthcare system. AT THE MOMENT Ruckdee is working closely with a renowed distributor company in Thailand, seeking to expand their business range, diversify their portfolio and explore opportunities in the healthcare sector. Adhearing to this ambitious vision, we are currently conducting a healthcare ecosystem research in which we determine to indentify the gaping holes through conducting focus groups with various stakeholders, such as the startups, manufacturers & suppliers, including healthcare practitioners. We positively hope to be able to share our insights and broaden the perspective of the Thai healthcare ecosystem.
- Other clients -
Ruckdee is one of a few privately-held companies to be officially appointed as Ministry of Public Health’s consultant to assist in determining national and international health policy and strategy, concordantly with ongoing changes as part of Medical Hub for Thailand 4.0 strategy.
AIRmaker is an IoT-focused accelerator for Digital Health and Smart Cities startups. It leverages the network and ecosystem of Ascendas-Singbridge, SGInnovate, and Runyang Group to help startups propel their business growth. Ruckdee is honored to be Airmaker’s strategic partner in helping in the selection process of Thai healthcare startups to join their program.
Based in San Francisco, Creative Ventures invests in startups that address the challenges reshaping our world: labor productivity, the aging population, and the coming climate crisis. Together, Ruckdee joins forces in the corporate research project helping investors diversify their porfolito into healthcare sector.
As seen on
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“พวกผมอยากเห็นอะไรเจ๋งๆ มันไม่ได้ หายไปกับเศษกระดาษที่คุณไปตีพิมพ์ หายไปกับถ้วยรางวัลแล้วจบไป
ผมอยากเห็นอะไร ที่มันสามารถสร้าง มูลค่าได้จริงๆ สร้างจีดีพีให้กับประเทศไทย อย่าง
น้อยสร้างคุณค่าให้กับตัวคุณเองได้”
“มีคนไอเดียด้านการแพทย์ดีๆมากมาย เราดูแลไอเดียของคนฝั่งนี้เพื่อให้แมตช์ กับนักลงทุน โรงพยาบาลหรือคนไข้ให้ เขามาเจอกัน”
Creator’s day 25.06.16
t s r fi s ’ e Ruckde p o h s k r o w
“Lending landscape and trends in Southeast Asia” with Crowdo and FinAccel 23.07.16 Techsauce Summit 2016 Page 22
Descendants of the fund 27.08.16 CMMU
Thailand Fintech Ecosystem 28.08.16
Startup Thailand & Digital Thailand Khonkaen 2016
Thailand New Investment Opportunities: Angel, Venture capital, Crowdfunding
17.09.16
Startup Thailand & Digital Thailand Phuket 2016
Funding Health Innovations
08.02.17
HealthTech4Good Thai Health Promotion Foundation
Previous events Healthtech & Fintech: Real life experience
14.02.17
Ministry of Public Health
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INVESTOR DECK
Contact: info@ruckdee.com FB/RuckdeeConsultancy