Taiwan’s NDC Establishes NT$100 Billion Investment Company to Help Startups Grow

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Taiwan’s National Development Council (NDC) Director Kung Ming-hsin on October 26th unveiled a plan to establish a new National Investment Company with a NT$100 billion (approximately US$3 billion) fund designed to support Taiwan’s most promising startups through private sector investments and mentorship, according to a recent report on the Business Next Publishing news website.

The government is partnering with private investors and business leaders in creating this new investment company, which is envisioned as a major driver of industrial innovation, transformation, and technology advancement.

Kung said the new national investment firm could be established by the Taiwanese government by the end of this year.

The government is looking at investing in Taiwanese startups that have shown initial market success and that can demonstrate strong growth potential, but also require new investment and mentorship to expand their operations.

Kung stressed the purposes of establishing a national-level investment company.

First, to support startups who may be in need of capital after having received a B round of funding.

Secondly, to build companies that have strong investment expertise, and can possess sound judgement and an ability to help manage startup companies.

He observed that Taiwan generates many promising start-up companies that can usually obtain the B or C round of funds, but they are often quickly bought up by international companies, clearly showing Taiwan’s insufficient capabilities as well as a lack of domestic investment mechanisms.

The new National Investment Company could provide a great opportunity to sharpen important skills related to investing in startups and other worthy targets of investment.

But which are the startups that have a good chance to share a part of the new NT$100 billion in funds to be provided by the National Investment Company?

Kung Ming-hsin stated that startups intending to establish effective and strategic cooperation within the Taiwan economy would be the top priority during the investment decision process.

Kung added that the fund would first go to startups that have a keen interest in working closely within Taiwanese supply chains or are looking to set up research and development centers in Taiwan.

These are some of the key factors that would determine which start-ups would make it to the National Investment Company’s “recommended” list.

Officials from the NDC added that the National Investment Company can be seen as a kind of management consulting firm.

The newly-established company will be partnering with private sector companies, using a combination of government and private sector funding, and making investment decisions that drive change in accordance with the Taiwan government’s industrial development policy.

Source from 2016/12/16 Meet Startup @TW