In alignment with President Lai's "Innovation Rainforest" national policy, the National Development Council (NDC) is tasked with advancing innovation and entrepreneurship to achieve an annual startup investment target of NT$150 billion. To secure funding, the NDC is exploring various channels, including insurance companies, university campus funds, venture capital (VC), and corporate venture capital (CVC). NDC Minister Paul Liu emphasized that CVC has become a major force in Taiwan’s startup investment ecosystem. The NDC plans to integrate CVC resources into an investment platform, encouraging businesses to expand investments in startups and small-to-medium enterprises (SMEs). Collaborative discussions with the Ministry of Economic Affairs and the Ministry of Science and Technology aim to strengthen investment and cooperation mechanisms, including tax incentives, government investments, R&D collaborations, and strategic alliances.
CVC is not a new concept, and Taiwan already has successful examples. Taiwan Web Service Corporation, a collaboration between the National Applied Research Laboratories' National Center for High-Performance Computing and ASUS Group, illustrates how ASUS fosters startups through investments, creating opportunities for internal vertical integration within the group.
The Sixth Research Division of the Taiwan Institute of Economic Research (TIER) pointed out that CVC investments are often driven by strategic considerations and business development needs. Unlike global trends, CVC activity in Taiwan has remained robust in recent years. Since 2021, CVC transaction volumes have consistently exceeded pre-pandemic levels, doubling in size.
Chia-Chin Lin, Director of TIER’s Third Research Division, noted significant changes in Taiwan's startup ecosystem. Startups are increasingly open to collaborating with enterprises due to the substantial resources that corporations provide. When innovative technologies align with a corporation's goal to enhance competitiveness, companies are more willing to invest heavily, even during the resource-intensive R&D phase.
According to NDC statistics, Taiwan had over 7,800 innovation-driven startups by 2023, with a record-breaking fundraising total that year. In 2024, VC and CVC investments accounted for 64% of total startup funding, with the median deal size at US$1.5 million and the average deal size around US$4.8 million. Chiou Der-Cheng, Chairman of the Venture Capital Association, explained that while CVC transactions tend to involve larger amounts, VCs engage in a higher number of deals. Collectively, the financial resources from corporations, CVCs, and VCs have significantly boosted Taiwan's startup investment momentum.
For the National Development Fund, Paul Liu announced a 2025 budget allocation of NT$12.8 billion, focusing on key sectors such as the five pillar industries, smart healthcare innovation and entrepreneurship, campus venture funds, industrial transformation, AI startups, and green growth in the net-zero industry. At least NT$2.5 billion will be invested in the five pillar industries, with further allocations to promote AI, green industry investments, and industrial transformation funds.
Resource: 兵分多路覓財源 國發會：CVC躍新創投資要角
