Research

 

1. Introduction

According to CB Insights, global venture capital (VC) funding in 2023 fell to US$248 billion, with deal activity declining by 30%, marking the lowest rate since 2017. Even investment in mature-stage startups faced a decrease of over 50% compared to 2021, reflecting a widespread downturn across global regions and industries. For instance, in the United States, deal activity hit a decade-low, while funding in Asia and Europe dropped by 20% to 25% in Q4 2023, raising concerns about the performance of global venture capital investments. Corporate venture capital (CVC) also experienced a sharp decline, with investment volume in 2023 shrinking by almost half compared to the previous year, suggesting that CVCs are adopting a more cautious approach amid the ongoing volatility in emerging markets.

While the global VC market remains in a deep chill, Taiwan’s startup ecosystem tells a different story with investment activity continuing to rise steadily compared to the previous year. This article explore the investment landscape across various types of investors in Taiwan, offering readers an in-depth view of the recent market trends and preferences.

 

2. Scope of Data and Research Methodology

The data on startup investments is collected and regularly published by FINDIT research team at the Taiwan Institute of Economic Research. Data sources include news reports, self-disclosures from funded companies, quarterly and annual reports from the National Development Fund (as of Q1 2024), investor disclosures, investment disclosures from publicly listed companies (as of Q1 2024), the Crunchbase database, and company registration information from the Administration of Commerce, Ministry of Economic Affairs. Following data collection and consolidation, the process includes data cleaning, integration of deal data, standardization of institutional names, identification of funding rounds, sector classification, and conversion of investment amounts into USD.

The sources of Taiwan’s investment data, compiled by FINDIT research team, include: (1) Crunchbase, an international early-stage investment database; (2) technology and news media outlets, e.g. Business Next, Inside, Commercial Times, and Economic Daily News; (3) funded companies, through press releases, official websites, Facebook pages, or direct submissions to FINDIT; (4) quarterly/annual reports of NDF and data from related government agencies; (5) investor disclosures, including press releases of investment firms, websites, equity investment information disclosed in financial statements of publicly listed companies, and direct submissions to FINDIT; and (6) company registration data from the Administration of Commerce, Ministry of Economic Affairs.

The research and analysis presented in this article are based on the aforementioned sources for statistical compilation. While the collected data may not be fully exhaustive, this report aims to offer deeper insights into Taiwan’s investment landscape and the investor profiles.

 

3. Types of Investors in Taiwan - Angel/VC Investment Overview

(1) Angel Investors

Angel investors, as the term suggests, are early-stage backers are early-stage backers who are willing to provide funding when a startup is still in its formative phase — often before its business direction is clear or when it is navigating the high-risk “valley of death.” These investors base their supports on confidence in the founding team’s ability and the product’s future market potential. In Taiwan, local angel investors include alumni angel groups such as NCTU Angel Club, Taipei Angels Investment, NTUTEC Angel Investor Club, Tsing Hua Angels Club and Ten Incubation Corporation. Other private angel organizations include Smart Capital, AVA Angels, Taiwan Global Angels, SVT Angels, Sustainable Impact Capital, Taiwan Leap Venture, Darwin Angel Investment Corporation, and Xchange Angel Fund.

An analysis of deal numbers and amounts between 2015 and 2024 Q1 shows that angel investment activity has grown steadily since 2017. In 2021, the number of deals reached 56, nearly five times the amount recorded in 2015, when early-stage investment first began. From 2015 to Q1 2024, a total of 278 angel investments were recorded, with 140 occurring in the past three years, accounting for 50% of the total. Notably, 106 of these deals took place before the Series A round, investment from seed to angel stages accounting for a remarkable 75%, highlighting the strong momentum of angel investment in recent years.

In terms of individual institutional activity, from 2021 to Q1 2024, AVA Angels participated in 16 angel investment deals, while Smart Capital was involved in 10 deals, making them two of the most active angel investment organizations in Taiwan. Notably, individual angel investors were involved in an impressive 53 deals during the same period. These investors are often prominent entrepreneurs or affluent individuals, and they continue to play a key role in driving early-stage investment in Taiwan.

In terms of sectors targeted by angel investors, the top four are healthcare (12.8%), software (10.8%), hardware (7.9%), and e-commerce (6.9%). Within the healthcare domain, investments primarily focused on medical devices and biotechnology. For example, Primo Biotechnology, which specializes in precision medicine, has received funding from angel investors such as AVA Angels and Paragon Investment. Other higher-value investment deals include Clearmind Biomedical, which designs and develops advanced neurosurgical instruments, AI Medical Technology Corporation, which applies AI in drug discovery, and Fecula Biotech, which develops adjuvant therapies for cancer treatments. A notable proportion of these investment involved participation from the National Development Fund (NDF), with most deals concentrated between 2017 and 2021.

In the software sector, one-third of the investments are concentrated in artificial intelligence (AI), with angel organizations such as SVT Angels, Taiwan Leap Venture, and NCTU Angel Club actively participating. Larger-scale investment deals include MoBagel, which specializes in machine learning and data science, and Profet AI, which focuses on automated machine learning solutions. In the hardware sector, a significant portion of investments is focused on electronic technology, including companies like Ardomus Networks Corporation, a subsidiary of Zyxel Corp., and PetaRay Inc., which develops AR light-field display modules. Meanwhile, investments in the e-commerce sector were primarily concentrated between 2019 and 2021, with a notably higher involvement of individual angel investors

An analysis of the 36 angel investment transactions in 2023 shows that healthcare and software remained the two most prominent sectors for angel investors. In addition to the previously mentioned Profet AI and Primo Biotechnology, other notable deals with larger amounts include Taiwan Main Orthopaedic Biotechnology, which develops and designs smart surgical glasses and offers integrated hardware/software solutions for advanced medical equipment.

In Q1 2024, angel investments spanned various sectors, including financial services, sustainability, biotechnology, software, advertising, healthcare, energy, and hardware. Among them, both the software and biotechnology sectors recorded two investment deals each. Outstanding investments in software include Asia Pacific Machine Intelligence Company, which develops Opentalk, and Tracle Living, which provides an online reservation platform for garbage disposal services. In the biotechnology sector, key investments are related to pharmaceuticals, including Creative Life Science, which specializes in microbiological testing products, and Rock BioMedical, which focuses on developing broad-spectrum vaccines. Notably, biotechnology has historically been one of the top five sectors for angel investments, and its performance in Q1 2024 indicates a rising trend.

An analysis of investment stages over the past five years reveals that angel investments exhibited a tilt toward more mature-stage startups during the post-pandemic period of 2021-2022. However, from 2023 to Q1 2024, aside from undisclosed deals, most investments have shifted back toward early-stage ventures. At the same time, pre-Series A to Series A rounds continued to attract significant co-investments from both venture capital and corporate venture capital firms.

 

(2) Venture Capital (VC)

Venture capital (VC) primarily operates through private equity. VC firms support high-potential, fast-growing startups by providing funding, market access, financial resources, and professional expertise. Their goal is to achieve long-term capital appreciation through high-risk investments by offering technical assistance and go-to-market support. Although VC firms typically focus on later-stage companies, they do not rule out seed or angel-stage startups. During investment evaluation, they take into account the startup’s market potential and long-term scalability.

An analysis of annual venture capital activity in Taiwan shows that 2021 was the most active year, setting records in both deal count and total investment—largely driven by 17 large-scale deals exceeding US$20 million. While the deal count and deal value declined in 2022 and 2023 compared to 2021, overall performance remained stable, with both years recording 12 deals surpassing US$20 million. In 2023, investments were primarily concentrated in healthcare, biotechnology, hardware, and energy. Notable deals include Acepodia (a cancer drug developer), Kneron (an edge AI computing solutions provider), Taiwan Bio-Manufacturing Corporation (TBMC), and OBIGEN Pharma (R&D, production, and manufacturing of botulinum toxin). Key investors include E.SUN Venture Capital, Fubon Financial Holding Venture Capital, and Industrial Technology Investment Corporation (ITIC). Additionally,19 deals exceeded US$10 million, with CDIB Capital Group standing out as one of the most active investors among them.

In Q1 2024, four deals exceeded US$10 million. Two of these were in the biotechnology sector, both focusing on new drug development—Anbogen Therapeutics and Elixiron Immunotherapeutics. The other two companies are iKala Interactive Media, which specializes in data analytics, and EASTERN UNION INTERACTIVE, which provides cross-border remittance services. Based on estimates of cumulative deal value and deal counts in Q1 2024, while the total deal value has declined, the number of deals remains relatively stable, suggesting that most deals are likely small and mid-sized investments.

In terms of the popular sectors for venture capital investment over the past five years the top three have been healthcare (16.5%), hardware (12.9%), and biotechnology (7.7%), followed by energy (7.2%) and software (7%). Within the healthcare sector, venture capitalists show particular interest in two sub-sectors: medical devices and biotechnology. In 2023, notable deals in the medical device sub-sector include WCC Biomedical, which specializes in developing microneedle patches, and QT Medical, a U.S. based company that developing medical-grade ECG systems and offers cardiac disease screening services. Key investors in this sub-sector include CDIB Capital and Taiwania Capital.

In the hardware sector, investments have primarily concentrated on electronics, with peak activity occurring between 2019 and 2021. A standout investment in 2023 is FlowVIEW Tek, which specializes in image-based automated liquid inspection. Major venture capital firms active in this sub-sector include Taiwania Capital, Industrial Technology Investment Corporation (ITIC), Fubon Financial Holding Venture Capital, and Cathay Venture.

As for biotechnology sector, 19 investment deals were made in 2023 alone, accounting for nearly one-third of the total over the past five years. Notable high-value investments include Taiwan Bio-Manufacturing Corporation, ARCE Therapeutics, OBIGEN Pharma, and Fullhope Biomedical. In Q1 2024, the biotechnology sector recorded four investment deals, including two that exceeded US$10 million: Anbogen Therapeutics, which develops targeted therapy drugs, and Elixiron Immunotherapeutics, which specializes in immunotherapy.

An analysis of investment trends by stage over the past five years shows that approximately 75% of venture capital investments have been targeted at early-stage startups, indicating that VC firms maintain a relatively strong interest in this phase. Notably, from 2021 to 2022, the share of venture capital investments in Series B to Series C rounds increased by nearly 10%. However, this trend reversed in 2023, dropping by 7.2%. This decrease was largely driven by a reduction in mid-stage deals, as early stage activity remained relatively stable.

According to the number of deals over the past three years (from 2022 to Q1 2024), the two most active venture capital firms—each involved in more than 20 deals—are CDIB (which includes CDIB Venture Capital and CDIB Capital) and Taiwania Capital Management Corporation, followed by Darwin Venture Management, which recorded nearly 20 deals. Other firms with more than 10 investments include E.SUN Venture Capital, Industrial Technology Investment Corporation, Harbinger Venture Capital, Top Taiwan Venture Capital, and Fubon Financial Holding Venture Capital. Other active investors include TBB Venture Capital, Cathay Venture, Sustainable Impact Capital, SparkLabs Taiwan, Hive Ventures, SinoPac Venture Capital, Mega International Commercial Bank, Paragon Investment, Chang Hwa Bank Venture Capital, AppWorks, Hua Nan Venture Capital, and JAFCO Investment (Hong Kong). A comprehensive overview of these institutions is provided below.

Table 1: Active Domestic Venture Capital Firms (2022–Q1 2024)

No	Company Name	Company Overview	Investment Focus
1	KGI Financial Holding Co., Ltd.	KGI Financial Holding (formerly known as China Development Financial Holding Co., Ltd.), founded in 1961 and headquartered in Taiwan, is a diversified financial holding company. The firm offers a comprehensive range of financial services and owns several subsidiaries across various sectors, including banking, securities, insurance, and investments. Its subsidiaries include CDIB Capital, CDIB Capital Management, CDIB Venture Capital, CDIB Capital Healthcare Ventures, CDIB Capital Innovation Accelerator, CDIB Capital Healthcare Ventures II Limited Partnership, CDIB Advantage Venture Capital Ltd. Partnership, KGI Securities, KGI Bank, KGI Securities Investment Trust, and KGI Life Insurance.	Media and Entertainment, Financial Services, Tourism, E-commerce, Information Security, Information Technology, Healthcare, Biotechnology, Hardware, Energy, Manufacturing
2	Taiwania Capital Management Corporation	Taiwania Capital Management, established in 2017, is a government-backed ventures capital firm initiated by the Taiwanese government. Its primary objective is to foster innovation and drive economic development in Taiwan, while also supporting Taiwanese companies in expanding into international markets. The funds managed by this company include Buffalo Fund (IoT), Buffalo Fund ll Bioventures (Biotech), Buffalo Fund III Bioventures (Biotech), Buffalo Fund V (Technology), and Buffalo Fund Vl (Technology).	Software Development, AI, Data Analytics, Biotechnology, Medical Technology, E-commerce, Green Energy
3	Darwin Venture Management Corporation	Darwin Venture Management was founded in 2009 in Taiwan. The fund management team has extensive experience in the semiconductor and the digital economy industries, with multiple successful startup exits in both Taiwan and the United States. The firm has managed a total of 9 funds-including the angel fund established in 2022. Its investors are primarily publicly listed companies, with National Development Fund also participating in several of its funds. In recent years, Darwin Venture Management has concentrated its efforts on seed to Series A round investments. In 2023, it expanded its global presence by opening an office in Tokyo, actively strengthening its presence across the Taiwanese, U.S., and Japanese markets.	Digital Economy, Internet Software, Digital Healthcare, Preventive Healthcare, Precision Medicine, Semiconductors and ICT, Advanced Materials, National Defense and Aerospace
4	E.SUN Venture Capital Co., Ltd.	E.SUN Venture Capital, a subsidiary of E.SUN Financial Holding, was established in 2002. The firm is committed to supporting the growth of startups and fostering innovation and transformation within Taiwan's industries. By leveraging the extensive resources of its parent company, E.SUN Venture Capital offers comprehensive financial services to businesses at various stages of development.	Chemicals, Electronics, IoT, Machinery, Manufacturing, Mobile Technology, Arts and Culture, Agriculture/ Fisheries, Health Technology
5	Industrial Technology Investment Corporation (ITIC)	ITIC was established in 1979 with the primary goal of promoting the transfer of domestic applied technology R&D outcomes. The company combines technology transfer with venture capital services. Its goal is to introduce Taiwan's outstanding technologies to the international market. At the same time, it brings advanced foreign technologies to help various organizations access the latest technological achievements. The company's joint funds include the Golden Asia Fund, Digital Economy Fund, Taiwan ITRI Entrepreneur Fund, and public funds managed by ITIC.	Electronics/ Semiconductors, Precision Machinery, Biotech and Health, Automotive, Cultural and Creative Industries
6	Harbinger Venture Capital	Harbinger Venture Capital, founded in 2000, currently manages a fund size of US$200 million. With offices in Taipei, Taiwan and Silicon Valley, USA, the firm focuses on investing in early- and mid-stage high-tech startups, as well as niche companies. The team consists of 8 experienced investment managers, most of whom joined since the company’s inception.	Next-Generation Computing and Connectivity, Biotech and Healthcare, Precision Machinery, Innovative Materials, Innovative Services or Platforms, Mobile Technology, Semiconductors, Green Energy
7	Top Taiwan Financial Consulting Co.,Ltd.	Top Taiwan Financial Consulting, established in 1999, specializes in providing investment and management services. The company aims to become an international asset management firm. With a total fund size exceeding NT$12 billion, Top Taiwan Financial Consulting actively supports domestic companies with global competitiveness. It collaborates with government agencies to promote various investment deals. The venture capital firms managed by Top Taiwan include Top Taiwan VIII Venture Capital, Top Taiwan VI Venture Capital, Top Taiwan V Venture Capital, , Top Taiwan ll Venture Capital, Top Taiwan Venture Capital, and Top Taiwan IX Venture Capital. Most of the funds managed by Top Taiwan are diversified funds, while Top Taiwan Xl Venture Capital and Top Taiwan XIII Venture Capital focus on specific investment sectors.	IC, Traditional Industries, Cultural and Creative Industries, Biomedicine, Green Energy, Information Technology, Electronics, Food and Beverage
8	Fubon Financial Holding Venture Capital Co., Ltd.	Fubon Financial Holding Venture Capital was established in October 2003. Its major shareholders include Fubon Financial Holding, Fubon Life Insurance, Fubon Insurance, and Fubon Securities. The company's business scope encompasses venture capital, investment advisory, and management consulting. It primarily focuses on joint ventures to launch new businesses, as well as invests in unlisted companies with high growth potential or stable profitability. In terms of investment management and consulting, the company provides advisory services to Fubon Life Insurance in areas such as project applications, public infrastructure, and social welfare enterprises. In recent years, it has actively assisted Fubon Life Insurance in building a green energy investment portfolio and planning the establishment of a subsidiary for green energy investments. This initiative not only aims to secure long-term stable returns and drive energy transformation, but also provides Fubon Financial Holding Venture Capital with sustained advisory income while fostering a professional team in green energy.	Biotech and Healthcare, Green Energy Technology, AI, New Materials Technology
9	TBB Venture Capital Co., Ltd.	TBB Venture Capital, founded in 2018 as a wholly owned subsidiary of Taiwan Business Bank, aims to support the development of startups and small and medium enterprises, fostering innovation and growth within Taiwan's industries.	Cultural and Creative Industries, Intelligent Machinery, Green Energy Technology, Biotech and Pharmaceuticals, National Defense, New Agriculture, Circular Economy
10	Cathay Venture Inc.	Cathay Venture Capital, a subsidiary of Cathay Financial Holdings, focuses on investing in companies and startups with high growth potential. Cathay Venture Capital's investment portfolio spans various industries, including technology, healthcare, fintech, and consumer goods, with a commitment to discovering and nurturing innovative enterprises.	Fintech, Biotechnology, Healthcare, Taiwan's 5+2 Industries (Intelligent Machinery, Asia Silicon Valley, Green Energy, Biomedicine, National Defense, New Agriculture, and Circular Economy), Overseas Investments
11	Sustainable Impact Capital Co., Ltd.	Sustainable Impact Capital is an investment firm committed to driving social and environmental change. The company focuses on supporting innovative enterprises and projects that align with the United Nations Sustainable Development Goals, fostering their growth and impact through providing funding and resources.	Social and Environmental Sustainability, Business Sustainability
12	SparkLabs Taiwan Co., Ltd.	SparkLabs is a venture capital fund originating from Silicon Valley, specializing in seed-round investments and acceleration programs worldwide. All of SparkLabs' founding partners have experience as co-founders, early team members, or early investors in well-known startups, such as Siri, DeepMind, and others.	Application of AI and Data Technology across all sectors
13	Hive Ventures	Hive Ventures was founded by three returnee entrepreneurs with backgrounds in the field of big data. The firm focuses on investing in and incubating Taiwanese startup teams, with a particular emphasis on areas such as AI, Big Data, IoT, SaaS, and internet-related industries. Hive Ventures provides not only financial support but also entrepreneurial expertise and guidance, helping Taiwanese startups expand globally.	Big Data, IoT, AI, SaaS, Blockchain
14	SinoPac Venture Capital Corporation	SinoPac Venture Capital, established in 2003, is a wholly-owned subsidiary of SinoPac Financial Holdings, specializing in venture capital investments. By leveraging the resources of SinoPac Financial Holdings and collaborating with external partners, the firm identifies high-growth potential companies and assists them in forming strategic alliances and accessing capital markets. These investment strategies aim to mitigate risks and actively manage the investment portfolio to foster the long-term growth of the companies.	Biotech and Healthcare, Circular Economy, Information and Communications Technology (ICT), Precision Machinery and Automation, Green Energy Technology, Semiconductors, Fintech
15	Mega Venture Capital Co., Ltd.	Mega Venture Capital, established in 2005, is a subsidiary of Mega International Commercial Bank. It focuses on venture capital investments and investment project management.	Unlimited
16	Paragon Investment Corporation	Paragon Investment, established in 2018, is a professional venture capital fund management firm. Since its establishment, the firm has raised two funds in 2019 and 2020 respectively and has maintained disciplined and structured process for fund management, including deal sourcing, due diligence, post-investment support and advisory services.   The firm focuses on high-growth digital technology sectors, with investment spanning Big Data, AI, and Software, with investments spanning Taiwan, China, Southeast Asia, and North America.	SaaS, AI, Big Data, Fintech, Biotechnology, and Other (Business Model Innovation)
17	Chang Hwa Bank Venture Capital Co.,Ltd.	Chang Hwa Bank Venture Capital, commonly known as “Changyin” Venture Capital (CHBVC), is a wholly-owned subsidiary established by Chang Hwa Commercial Bank in 2019. Its primary objective is to support startup development by enhancing competitiveness and market expansion through equity investments, management, and advisory services. Chang Hwa Bank Venture Capital focuses on investing in industries related to environmental sustainability, aiming to promote industry innovation and sustainable development.	Taiwan's 5+2 Industries (Intelligent Machinery, Asia Silicon Valley, Green Energy, Biomedicine, National Defense, New Agriculture, and Circular Economy) and Six Core Strategic Industries (Digital and Information Technology Industry, Cybersecurity Industry, Medical Technology and Precision Health Industry, Green and Renewable Energy Industry, National Defense and Strategic Industries,)
18	AppWorks Ventures Co., Ltd.	AppWorks Ventures, established in 2009, focuses on startup acceleration and venture capital. Its primary mission is to support entrepreneurs and startup teams in seizing opportunities in the digital revolution. AppWorks provides services such as startup accelerators, investments, and the AppWorks School program.	Software Development, AI
19	Hua Nan Venture Capital Co. Ltd.	Hua Nan Venture Capital, a wholly-owned subsidiary of Hua Nan Financial Holdings, was established in 2004. The firm specializes in venture capital investments, with a focus on supporting the growth and development of startups. Through funding, expertise, and resources, Hua Nan Venture Capital helps startup teams expand their markets and strengthen their competitive edge.	Electronics Technology, Machinery Technology, Mobile Technology, Clean Technology, Energy Technology, Health Technology, Cultural and Creative Industries
20	Cherubic Ventures Inc.	Cherubic Ventures, established in 2014, is a firm specializing in early-stage investments in startups. As the only institutional angel investor active in both the U.S. and China markets, the firm is committed to discovering and supporting innovative companies with high potential. Leveraging its global perspective and extensive resources, Cherubic Ventures helps startups thrive in both Silicon Valley and China.	SaaS, AI, E-commerce, Logistics, Healthcare, Fintech, Web3
21	TaiAn Technologies Corporation	TaiAn Biotechnology, founded in February 2002, is a technology consulting company composed of biotechnology professionals. In 2005, it received support from companies such as China Steel Corporation, the National Development Fund of the Executive Yuan, Taiwan Fertilizer Co., Ltd., and Oriental Union Chemical Corporation to establish a new NT$1 billion fund for early-stage venture investments, primarily focusing on the biotech and pharmaceutical industries. With an experienced management team, TaiAn Biotechnology specializes in providing comprehensive consulting and services to help clients transform innovative intellectual property into commercially successful biotech ventures.	Biotechnology
22	Taishin Venture Capital Investment Co., Ltd.	Taishin Venture Capital is a wholly-owned subsidiary of Taishin Financial Holding, focusing primarily on investments in expansion-stage or mature enterprises, while also allocating a smaller portion of its investments to early-stage companies.	Information Technology, Biotechnology, Traditional Industries, Service Industry
23	Taiwan Cooperative Venture Capital Co., Ltd.	Taiwan Cooperative Venture Capital, established in 2015, is a wholly-owned subsidiary of Taiwan Cooperative Financial Holding. Its primary mission is to leverage the group's resources and channel advantages to identify and support innovative companies with growth potential.	Digital and Information Technology, Cybersecurity, Medical technology and Precision Health, Green and Renewable Energy, National Defense and Strategic Stockpile Industries.
24	Cornerstone Ventures Co., Ltd	Cornerstone Ventures is a venture capital firm dedicated to supporting early-stage startups. The firm centers its investments on emerging technologies and digital innovations, aiming to help promising entrepreneurial teams thrive in the market.	Digitalization, AI, Fintech, Internet
25	Black Marble Capital Management Co., Ltd.	Black Marble Capital Management was founded in 2015 and is headquartered in Taipei City. It is a venture capital firm dedicated to providing funding and professional guidance to emerging businesses, aiming to foster growth and innovation. Black Marble Capital Management leverages its extensive investment management experience to identify promising opportunities and help companies succeed in the competitive market.	Healthcare, AIoT, Software, Semiconductors
26	CTBC Financial Holding Co., Ltd.	CTBC Financial Holding Co., Ltd., established in 2002 and headquartered in Taipei City, is committed to providing comprehensive financial services, including banking, insurance, securities, and other related services. As one of the largest financial holding companies in Taiwan, CTBC Financial Holding wields significant market influence. Its subsidiaries include CTBC Bank, Taiwan Life Insurance, CTBC Securities, CTBC Venture Capital, CTBC Asset Management, CTBC Investments, CTBC Finance, CTBC Security, Taiwan Lottery. The key venture capital units of the company are CTBC Venture Capital Co., Ltd. and CTBC Securities Venture Capital Co., Ltd., a wholly-owned subsidiary of CTBC Securities.	- CTBC Securities Venture Capital: Innovative Technologies, Corporate Sustainability   - CTBC Venture Capital: Information Communications, Green Technology, Biotechnology and Healthcare, Consumer Goods, Cultural and Creative Industries, Information Software Services, Traditional Industries
27	B Current Impact Investment	B Current Impact Investment was founded on April 10, 2014, by 43 leaders from Taiwan and Silicon Valley, representing various fields and professions. The company’s first fund (Fund 1) was established through an experimental “Club Funding” model, a form of crowdfunding. B Current Impact Investment is Taiwan's first venture capital management firm dedicated exclusively to investing in socially innovative enterprises (Profit-with-Purpose Businesses). Subsequently, the company launched additional funds, including Fund 2 in June 2017, Fund 3 and Fund 4 in April and May 2020, and Fund 5 in July 2022. All these funds are managed by Fund 1.	Climate Technologies, Sustainable Agriculture, Healthy Lifestyle, Inclusive Economy
28	Red Building Capital Ltd.	Red Building Capital, founded in Taiwan, is a venture capital firm specializing in blockchain and digital technology. The company is dedicated to supporting and promoting the development of startups. As the first firm in Taiwan to operate under a Venture Studio model, Red Building Capital offers not only funding but also extensive resources and support to help startups succeed in the market. The company currently manages two funds: the venture capital fund, DDV Fund I, and the crypto hedge fund HODL Fund I).	Blockchain and emerging Technologies, Digital Integration

 

 

4. Types of Investors in Taiwan - C/CVC Investment Overview

Corporate or corporate venture capital (C/CVC) investments are often driven by a corporation’s own strategic objectives or business expansion plans. By investing in startups, companies can enhance internal innovation and unlock new market opportunities through partnerships. For startups, these investments not only provide funding but also offer tangible resources and support.

Global corporates and corporate investors activity has continued to decline after the capital frenzy. According to CB Insights, the number of corporate investments worldwide reached nearly 5,000 in 2022 but fell to 3,545 in 2023, marking the lowest level since 2019. Additionally, only 162 new corporate venture capital firms were established in 2023, also the lowest figure in the past six years. This indicates a continued cooling of corporate venture capital participation in deals, both globally and in the United States, where investment activity has traditionally been the strongest. However, in Q1 2024, corporate investment saw a slight rebound, primarily driven by high-value deals worth tens of billions of U.S. dollars, with investment activity outpacing the broader venture capital market.

In Taiwan, corporates and corporate investors have consistently played a vital role in early-stage investments. Unlike the global trend, investment activity in Taiwan has remained strong in recent years. Since 2021, deal value have more than doubled compared to pre-pandemic levels. From 2021 to 2023, the number of corporate and corporate investor deals steadily increased from 291 to 384 deals, accompanied by a continuous rise in deal amounts. This growth has been largely driven by substantial investments in the energy sector, which accounted for 86 deals, representing 22% of total deals in that year. Nearly 20 of these deals exceeded US$10 million, with notable investments in companies such as He To Energy Integration (ground-mounted solar system), SunnyRich Multifunction Solar Power (fishery and electricity symbiosis), and APh ePower (aluminum-ion batteries). Based on the deal figures in Q1 2024, the total number of deals and deal volume for the year are expected to approach 2022 levels, indicating sustained investment momentum, with energy continuing to be a key focus.

Analyzing the investments across sectors, energy is the primary focus for corporates and corporate investors, accounting for 18.7% of total investments. Other key sectors include hardware (15.5%), healthcare (12.8%), and manufacturing (10.1%). Compared to the previous year, the top four sectors have remained unchanged, highlighting corporates and corporate investors’ concentrated investment approach. Notably, participation in the energy sector has continued to grow, with the investment share rising by 6% compared to the previous year. Active companies (including subsidiaries) involved in this sector include Hotai Group, Shin Kong Venture Capital, and Chailease Holding.

In the hardware sector, fewer large deals exceeding US$10 million were recorded. Notable investments include Main Drive Corporation (robotic joint modules), Kneron (edge AI neural processing unit), and TMYTEK (mmWave technology). The main investors in this sector are renowned electronics giants, such as UMC, Innodisk, and ELAN Microelectronics. In the healthcare sector, major deals in 2023 include LUMI HEALTH INNOVATION (healthcare retail chain), AnnJi Pharmaceutical (R&D in small molecule drugs), and Prodeon Medical (treatment for prostatic diseases). Active investors in this sector include AUO, ShareHope Medicine, and Wistron.

 

In the manufacturing sector, investment activity was primarily concentrated between 2021 and 2023, with key deals including Unikorn Semiconductor (compound semiconductor devices), Shinsol Advanced Chemicals (semiconductor-grade chemicals), and Taisic Materials (third-generation semiconductor materials, SiC). Unlike other industries, investments in the semiconductor sector often involve subsidiaries of large domestic companies or established firms, with investors mainly coming from related industries, such as Ennostar and Shinkong Synthetic Fibers.

 

 

From 2019 to Q1 2024, the energy sector has maintained its position as the leader in cumulative deal value among the top six industries, reaching US$3.1 billion, nearly three times the value of the second-ranked hardware sector (US$1.131 billion). Compared to the previous year’s rankings, the financial services sector has dropped out of the top sectors, replaced by the sustainability sector. Sustainability and energy occupy two spots among the top six industries, reflecting a surge in investment in these fields. Investments in the sustainability sector are primarily focused on clean technologies, such as BAO-DING Reclaimed Water Co., Ltd. (wastewater reuse) and HAN-YANG Technology Renewable Energy Co., Ltd. (high-efficiency waste incinerators). The Taiwan Carbon Solution Exchange (TCX), established with joint funding from the Taiwan Stock Exchange and the National Development Fund, is also a key driver of growth in this sector.

Furthermore, the manufacturing sector has risen in rank, with investment doubling compared to the previous year. Large-scale investments exceeding US$10 million are primarily concentrated in semiconductors, electric wires and cables, precision manufacturing, and components. Notable companies in this sector, such as Syntec Technology (smart manufacturing), TA TUN Electric Wire & Cable (electric wires and cables), and HUSHAN Autoparts (aftermarket car parts manufacturing and sales), have already been listed on the emerging stock market.

Analyzing the three-year periods before and after the pandemic, major companies have notably shifted their investment strategies. Hardware investments, known for its strong industrial relevance, have declined, while those in the energy sector have risen significantly. Compared to the period from 2019 to 2021, the number of sustainability-related investments after the pandemic has doubled, reflecting the strong corporate push for green energy and ESG initiatives over the past three years. Additionally, driven by the accelerated pace of digital transformation post-pandemic, the efficiency and innovation of supply chains and logistics technology have become crucial, leading to increased investments in transportation and logistics. On the other hand, as the global economy entered a phase of market correction and slowdown, the significance of media and entertainment has diminished, resulting in a sharp decline in related investments.

Based on the number of deals from 2022 to Q1 2024, active investors that have completed more than ten deals include UMC Capital, Wise Cap Co., Ltd., Anji Technology Co., Ltd., and HER CHEE Industrial Co., Ltd. Other active investors that have made over five investments in the past two years include TransGlobe Life Insurance Inc., Gudeng Venture Capital Co., Ltd., Power Master Energy Co.,Ltd., Wistron Corp., ATE Energy International Co., Ltd., Taiwan Life Insurance Co., Ltd., HD Renewable Energy Co.,Ltd., ADATA Technology Co., Ltd., Marketech International Corp., GIGASTORAGE Corp., J&V Energy Technology Co., Ltd., Gains Investment Corp., HE JUN Energy Co., Ltd., ZHAO MING Technology Co., Ltd., Collins Co., Ltd., Far EasTone Telecommunications Co., Ltd., TA YA Electric Wire & Cable Co., Ltd., Laien Parts Technology Co., Ltd., Shihlin Electric & Engineering Corp., Acer Inc., Compal Electronics, Inc., Zerone Win Investment Co., Ltd., RAC Electric Vehicles Inc., Pili International Multimedia Co.,Ltd., Star Ritz International Entertainment Co., Ltd., ECOVE Environment Services Corp., Radium Life Tech Co., Ltd., Sunbright Energy Technology, Shin Kong Life Insurance Co., Ltd., GreenFiltec Ltd., and Techzone Technology Materials Co., Ltd.

UMC Capital is a wholly-owned subsidiary of the global semiconductor foundry UMC (United Microelectronics Corporation). The funds it manages follow a sustainable structure and operate without the constraints of a fixed lifecycle. While its core investments are centered on semiconductors, UMC Capital also invests in a range of high-tech and deep-tech sectors. Its investment portfolio spans information and communications technology, digital media, biotechnology, and energy. However, regardless of the industry, a key criterion for UMC Capital’s investments is a technology or business model with high barriers to entry

Wise Cap Co., Ltd., a subsidiary of Wistron Corporation, is a manufacturer and distributor of consumer products such as computer memory. The company primarily invests in five major sectors: biotechnology, healthcare, hardware, software, and data analytics. Over the past two years, investments in biotechnology and healthcare have accounted for nearly one-third of its portfolio, reflecting a strong emphasis on the biotech sector, including pharmaceuticals, vaccines, medical imaging software, and medical devices. Additionally, Wise Cap is also actively involved in the manufacturing and hardware sectors.

Notably, more than half of these active corporate investors focus on the energy sector, even when their core business has little to do with energy. A more in-depth analysis reveals that although these companies may not be primarily classified as energy firms, their industries are often connected to the energy sector to some extent. For example, Anji Technology, a solar panel manufacturer, has strategically invested in solar energy and green power. Similarly, HER CHEE Industrial, originally a manufacturer of motorcycles, all-terrain vehicles, and agricultural vehicles, began transitioning its vehicle products to electric vehicles starting last year. As a result, HER CHEE Industrial has increasingly focused on investments in renewable energy and energy storage sectors in recent years.

A similar trend is observed in Taiwan's life insurance industry, which, in alignment with sustainability and net-zero goals, has actively invested in the green energy and renewable energy sectors in recent years. Additionally, GIGASTORAGE, after undergoing multiple transformations, has shifted its core business from optical disc storage medium to green energy storage system installation services. As a result, the company now places a significant focus on green energy sectors. These trends in energy investments demonstrate that, supported by favorable sustainability and green energy policies, energy investments have become a top priority in recent years.

In addition to energy-focused investments, many corporates also make strategic investments aligned with their business or group development needs. For example, Gains Investment Corp., jointly funded by China Steel Corporation (CSC) and the Far Eastern Group, primarily serves as an industrial extension of CSC. Managing assets exceeding NT$10 billion, the firm’s investment portfolio spans sectors such as semiconductors, optoelectronics, communications, networks, materials, biotechnology, green energy, automotive components, and the steel industry supply chain. Similarly, the Radium Group, originally focused on construction, has expanded its business to include operations and environmental technology. To complement its existing businesses, the group’s investments have increasingly centered on clean technologies, such as water reclamation and sludge treatment.

Another example can be found in the Kinpo Group, which has also strategically expanded its investment focus to align with its evolving business model. The two main subsidiaries under the Kinpo Group are Compal Electronics and New Kinpo Group. The former concentrates on information products, with a primary focus on manufacturing computer peripherals, while the latter specializes in consumer electronics, covering areas such as communications, digital media, smart devices, automotive electronics, mechanical components, panels, and networks, offering integrated solutions. While some of the group's early investments turned out to be unprofitable, over the past decade, its investment strategy has been concentrated on the medical field. The three main medical areas of its investment focus are medical devices, cell therapy, and long-term care services. Recent investments include companies such as Ganzin Technology (eye-tracking solutions), Raypal Biomedical, ARCE Therapeutics (both in cell therapy), Aco Healthcare (handheld ultrasound system), and MedicalTek (medical devices for minimally invasive surgery and endoscopes). In the past two years, Compal has also signed memorandums of understanding (MOU) with Taichung Veterans General Hospital and Show Chwan Health Care System, and plans to establish Ruifang Hospital by 2027, signaling its commitment to expanding its medical business.

 

5. Comparison of Domestic and Foreign Investment Trends

Between 2019 and Q1 2024, 2,504 funding deals were made, of which 239 involved foreign investors, accounting for approximately 9.3%. This marks an increase of 2.5% compared to the previous year's 6.8%. An analysis by investment scale shows that 76.8% of domestic investors' deals were concentrated below US$5 million, with 41% under US$1 million. Deals exceeding US$10 million accounted for only 8.7%, indicating that such large-scale investments remain relatively uncommon. In contrast, foreign investments were more evenly distributed across deal sizes, with 40.9% below US$5 million and 26.5% exceeding US$10 million, which is three times the proportion of such large-scale deals among domestic investors.

Looking further into the investment sectors, slight changes are observed compared to the previous year, with the primary focus on software, hardware, and healthcare. Within the software sector, there is a preference for AI and app-related applications. In hardware, in addition to the emphasis on AI applications, foreign investors are showing increasing interest in electronic products such as robotics, MicroLED, and semiconductor manufacturing. Additionally, the healthcare sector has seen a relatively higher concentration of investments exceeding US$10 million.

 

A comparison of foreign investor activity by sector between 2018 and Q1 2024 reveals shifts in trends. From 2018 to 2020, the top five sectors by number of deals were software (13.2%), healthcare (9.6%), hardware (8.8%), media & entertainment (8.1%), manufacturing (6.6%), and internet services (6.6%). However, in the post-pandemic period from 2021 to Q1 2024, software remains the leading sector (12.2%), while the hardware sector has seen a significant increase in the number of deals, putting it on par with software. The following top sectors are healthcare (10.8%), manufacturing (6.1%), privacy & security (6.1%), and sales & marketing (6.1%).

Notably, as digitalization and remote work have become the new normal following the pandemic, the importance of cybersecurity has significantly increased, rising from 2.2% to a top-five position. This shift highlights the growing opportunities and challenges in cybersecurity risk management. Similarly, major brands, having been heavily impacted by the pandemic, are now facing challenges in adapting to shifting shopping behaviors and maintaining consumer brand loyalty. As foreign investors highly value the rapid scalability of products, recalibrating marketing strategies in the post-pandemic era has become a critical priority. On the other hand, investment in the media and entertainment sector has declined significantly, falling out of the top rankings. This drop is primarily due to rising market and economic uncertainties, which have reduced consumer demand in the sector and curtailed investor interest. As a result, the share of investments in media and entertainment has fallen to 4.7%.

Analyzing the distribution of investments by country from 2018 to Q1 2024, the top five countries investing in Taiwanese startups are the United States, China, Japan, Singapore, and Hong Kong. Among these countries, U.S. investors remain the most dominant contributors, with notable investors such as SOSV, which has already established collaborations with Taiwan, as well as 500 Global, Techstars Ventures, and Mucker Capital. These examples highlight the value of collaborations with international accelerators in attracting investment. Additionally, other active U.S.-based investors include Draper Associates, Draper Venture Network, Translink Capital, Palm Drive Capital, and VIVO PANDA FUND, L.P.

Major investors from China include Alibaba Entrepreneurs Fund, Fenbushi Capital, BAI Capital, Fosun Capital, Chinaccelerator, and ZhenFund. In Japan, active investors include Cool Japan Fund, Headline Asia, SBI Group, and Daiwa Corporate Investment. Key Singaporean investors are FBG Capital, Quest Ventures, and Three Arrows Capital. Lastly, Hong Kong-based investors, such as Animoca Brands, JAFCO Asia, and Horizon Ventures, all of which have played a significant role.

 

6. Early-Stage Investment Funds See Prosperity

As seen in the investment trends above, early-stage investments remained strong in 2023. In recent years, the government has spared no efforts in promoting innovation investments and industrial policies. The National Development Fund’s Business Angel Investment Program has become Taiwan's largest early-stage startup investment initiative. Additionally, the government and the Financial Supervisory Commission (FSC) have also relaxed restrictions on the biotechnology industry’s public listing and enacted the “Act for the Development of Biotech and Pharmaceutical Industry,” fueling rapid development in this sector. This underscores the government’s focus on supporting the emergence and growth of Taiwanese startups as a key policy priority.

As of now, both academic research institutions and businesses are actively establishing new funds to participate in early-stage investments. For instance, the National Development Council plans to collaborate with National Taiwan University to launch an alumni VC investment fund, encouraging alumni to invest in the university and in fellow alumni. In addition to increased investment from the National Development Fund, the university will also be able to acquire technology stock rights, aiming to strengthen the culture of innovation on campus.

Similarly, the Industrial Technology Research Institute (ITRI) has also announced the launch of new funds. At the end of last year, ITRI signed a MOU with CDIB Capital to jointly launch a “Biomedical Innovation Cross-Discipline Cooperation Platform.” The platform aims to connect industries with venture capital networks, focusing on collaboration through the exchange of talent, capital, information, and expertise. It is expected to help biomedical teams accelerate R&D and attract funding to develop effective business models.

Additionally, ITRI’s subsidiary, Industrial Technology Investment Corporation (ITIC), has partnered with major Taiwanese companies such as Eternal Materials Co., Ltd., Giant Group, HOTA Industrial Mfg. Co., Ltd., and Shinkong Synthetic Fibers Corporation to jointly establish the Research Innovation Capital Corporation, which focuses on investing in ITRI's startup teams, with an aim to accelerate the progress of ITRI’s technical teams, helping to shorten the time from product R&D to manufacturing, and ultimately facilitating their entry into the capital market.

Furthermore, the Institute for Biotechnology and Medicine Industry (IBMI) has announced the formation of the “Startup Investment Alliance,” collaborating with Cathay Financial Holdings, Fubon Financial Holding, Taishin Financial Holding, Realtek Semiconductor, Inventec, and AUO. The alliance will invest in seed rounds, angel rounds, and even Series A funding rounds, primarily targeting biomedical startups in Taiwan. By bringing together financial holding companies and leading tech enterprises to accelerate capital inflow and drive the growth of startup ecosystem.

 

7. Conclusion

Reviewing the overall trends, investment performance across various sectors in 2023delivered solid performance. Although the total deal value of angel and VC investments declined compared to the previous year, the deals activity remained robust, suggesting stronger investor interest. C/CVC investments also demonstrated an upward trend.

In terms of investment sectors, angel investors have traditionally favored asset-light businesses, with a recent shift toward e-commerce. Notably, with policy support, energy has become a key area of interest for VCs, no longer the exclusive domain of corporate investors. Additionally, based on cumulative deal value and investment stages, corporate and corporate investors continue to play a crucial role in Taiwan's early-stage investment landscape, with their participation continuing to grow. Among the sectors attracting the most attention, sustainability remains a top focus.

As for foreign investors, investment trends have slightly shifted compared to the previous year. As the semiconductor industry gains more attention, investments in electronics have significantly increased, along with growing interest in cybersecurity and marketing-related startups. This reflects a diversification in the scope of startup investments.

Moving forward, with strong government policy support, both academic research institutions and private-sector organizations are actively establishing new funds and forming strategic partnerships to engage in early-stage investments. This suggests that Taiwan's investment landscape is gaining momentum, with funding availability supporting startups from early stages through to market entry, which is a critical asset for startups. Moreover, based on the number and proportion of foreign investments, Taiwan's startups are becoming increasingly attractive and visible to global investors, as a result of strengthened international connections in the startup ecosystem. Despite the relatively larger investment scale of foreign investors, accessing such funding remains a distant goal for many startups. Looking ahead, deepening collaboration with foreign investors and enhancing startups' readiness for international expansion will be crucial factors in reinforcing Taiwan’s early-stage investment landscape.

 

 

Reference:

• Chang, I-Chung (2023, December 15). Compal Unveils Three Major Healthcare Initiatives, Aiming for 10% Profit Share Within Three Years. MoneyDJ, MoneyDJ News. www.moneydj.com/kmdj/news/newsviewer.aspx?a=2765218c-32ad-48c3-b40b-65ffb07eaab3

• CB Insights Research (2024, March 7). State of CVC 2023 Report. Retrieved September 11, 2024, from www.cbinsights.com/research/report/corporate-venture-capital-trends-2023 

• CB Insights Research (2024, January 4). State of Venture 2023 Report. Retrieved September 11, 2024, from www.cbinsights.com/research/report/venture-trends-2023