Which 10 Venture Capital Firms Are the First to Collaborate with the Digital Development Department to Inject 10 Billion NT Dollars into AI Startups?
The Digital Development Department (referred to as DDP) secured 10 billion NT dollars in funding from the National Development Council by the end of 2024, aimed at investing in Taiwan’s AI startups and related digital industries. After several months of preparation, the initiative officially launched on March 31, with the announcement of the first batch of partnering investors.
The first batch of venture capital firms, accelerators, and corporate venture capitalists (CVC) includes:
- TAIANG Biotechnology
- Taiwan Intelligent Cloud Services
- Yuefan Management Consulting
- AVA Angels
- Energy Asia Capital
- National Union Venture Capital Management Consulting
- Genesis Venture Capital
- SparkLabs ###
- Huayang Small and Medium Enterprises Development (Huayang Venture Capital)
- Taiwan Enterprise Bank Management Consulting
These 10 firms will serve as the first group of “strengthened investment in AI startups implementation plan” partners, allowing eligible startups they invest in to apply for additional investment under this scheme.
The List of 10 Partnering Investors for the “Strengthened Investment in AI Startups Implementation Plan” is Released
Minister of Digital Development Huang Yen-Nan stated that the development of AI includes five key resources: funding, talent, computing power, data, and marketing. Startups often face funding shortages in their early stages, which is why the DDP proposed the “Strengthened Investment in AI Startups Implementation Plan” to develop Taiwan’s digital economy and AI industry.
Minister of Digital Development Huang Yen-Nan stated, “The ‘Strengthened Investment in AI Startups Implementation Plan’ operates through public-private cooperation.”
Image / Photo by Zeng Linghuai
The “Strengthened Investment in AI Startups Implementation Plan” totals 10 billion NT dollars, with a 10-year investment duration divided into a 7-year investment period and a 3-year disposition period. Huang emphasized that this is a cooperative investment plan, not a subsidy. Thus, the DDP will not act independently but will invest alongside partnering venture capital firms, with an investment ratio of 1:1. It is anticipated that the second and third batches of partnering investors will be announced in May and November, respectively.
Deputy Minister Lin Yi-Ching stated that investment carries certain risks; therefore, the mechanism of partnering investors aims to leverage the expertise of venture capital to identify outstanding Taiwanese startups. After venture capital decides to invest, they will further assess whether the startup is suitable to apply for the AI project co-investment. Applications will be reviewed by the National Development Council, with subsequent handling procedures similar to those of the National Development Angel Fund.
In other words, the first round of funding that startups receive from government agencies may come not only from the National Development Council’s Angel Fund but also from the DDP’s “Strengthened Investment in AI Startups Implementation Plan.” Startups can find partnering investors themselves or have the DDP assist in matching them, with the first matching event scheduled for May 28.
Company Names and Focus Areas
| Company Name | Focus Area |
|---|---|
| TAIANG Biotechnology | Investing mainly in pharmaceuticals and biotechnology, recently focusing on AI and semiconductor applications in biotech. |
| Taiwan Intelligent Cloud Services | AI-related applications and providing supercomputing accelerators. |
| Yuefan Management Consulting | Focusing on transportation and healthcare, with international resources such as Continental AG and Volkswagen Group, and co-investing with Medtronic in healthcare. |
| AVA Angels | Investing mainly in early-stage vertical SaaS startups, recently collaborating with AWS on the A2Growth Launchpad accelerator program. |
| Energy Asia Capital | The second domestic sustainable venture capital planning for IPO (converted to sustainable investment last year), focusing on AI digital economy, digital transformation, autonomous vehicles, and robotics. |
| National Union Venture Capital Management Consulting | Focus areas: Information and digital, defense and strategy, biotech pharmaceuticals, precision medicine, green energy and renewable energy, semiconductors, optoelectronics. |
| Genesis Venture Capital | Focus areas: Concentrating on AI, startups, and strategic investments, mainly in Series B and Pre-IPO stages. |
| SparkLabs ### | Focus areas: Investing in AI, Deeptech, semiconductors, and digital new economy software applications, adopting a “investment upon selection in accelerator program” model, focusing on supporting early-stage startups. |
| Huayang Venture Capital | Focus areas: Investing in AI, ESG, semiconductors, etc. |
| Taiwan Enterprise Bank Management Consulting | Focus areas: AI semiconductors, biotech healthcare, digital economy. |
From the distribution of partnering investors, it covers a range from early angel investments to pre-IPO stages, with a wide distribution across various industries. Lin Jun-Xiu, Director of the DDP’s Digital Industry Department, and Deputy Minister Lin Yi-Ching stated that although the investment targets are primarily AI and digital economy startups, AI can be applied to many industries, so no possibilities are excluded. However, currently, Taiwan’s biotech healthcare capacity combined with AI applications has a very promising chance to enter the international market.
Chairman of the National Development Council Liu Jing-Ching stated that there are three main axes for promoting the development of the AI industry: establishing digital software platforms by leading smaller companies, promoting AI applications in millions of enterprises, and creating a nationwide AI lifestyle. The government is also actively revising laws, including the draft “Promoting Data Innovation Utilization Development Act,” “AI Basic Law,” and revisions of the “Industrial Innovation Act,” to strengthen the resilience of AI development.
Chairman of the National Development Council Liu Jing-Ching stated that the government is undertaking multiple tasks to promote Taiwan’s AI development.
Image / Photo by Zeng Linghuai
This article is a collaborative reprint from: Startup Gathering