Which 10 Venture Capital Firms are First to Partner with the Ministry of Digital Development to Inject NT$10 Billion into AI Startups?
The Ministry of Digital Development (hereinafter referred to as MoDD) has secured NT$10 billion in funding from the National Development Council by the end of 2024 to invest in Taiwan’s AI startups and related digital industries. After several months of preparation, the initiative officially launched on March 31, and the first batch of partnering investors was announced.
Ten venture capital firms, accelerators, and corporate venture capitals (CVCs) have been selected as the first batch of partnering investors for the “Strengthening Investment in AI Startups Implementation Plan.” These include TaiAn Biotechnology, Taiwan Smart Cloud Services, YuJun Management Consulting, AVA Angels, Energy Asia Capital, National United Venture Capital Management Consulting, Genesis Ventures, SparkLabs ###, Huayang SME Development (Huayang Ventures), and Taiwan Enterprise Bank Management Consulting. Future startups that meet the criteria of this plan will be able to apply for additional investment.
List of 10 Partnering Investors for the “Strengthening Investment in AI Startups Implementation Plan”
MoDD Minister Huang Yen-nan stated that the development of AI includes five key resources: capital, talent, computing power, data, and marketing. New startups often face the dilemma of insufficient funding during their initial establishment phase, which is why the proposal for the “Strengthening Investment in AI Startups Implementation Plan” was presented to the National Development Council to advance Taiwan’s digital economy and AI industry.
MoDD Minister Huang Yen-nan stated that the “Strengthening Investment in AI Startups Implementation Plan” operates through a public-private collaboration model.
The “Strengthening Investment in AI Startups Implementation Plan” has a total budget of NT$10 billion, with the entire investment plan spanning 10 years, divided into a 7-year investment period and a 3-year disposal period. Minister Huang emphasized that this is a collaborative investment scheme, not a subsidy. Therefore, the MoDD will not act independently but will invest alongside partnering venture capital firms, maintaining a 1:1 investment ratio. The second and third batches of partnering investors are expected to be announced in May and November, respectively.
MoDD Deputy Minister Lin Yi-ching remarked that investing carries certain risks; thus, the mechanism for partnering investors aims to leverage the expertise of venture capital firms to identify outstanding startups in Taiwan. After a venture capital firm decides to invest, they will further evaluate whether the startup is suitable to apply for the AI project co-investment. Applications will be reviewed by the National Development Council, with subsequent processing regulations similar to those of the National Development Angel Fund. In other words, the initial funding that startups receive from government agencies may come from either the National Development Council’s Angel Fund or the MoDD’s “Strengthening Investment in AI Startups Implementation Plan.” Startups can either find partnering investors themselves or receive assistance from the MoDD in matching with these investors. The first matching event will be held on May 28.
Company Names and Focus Areas
- TaiAn Biotechnology: Primarily invests in pharmaceuticals and biotechnology, recently focusing on AI and semiconductor applications in biotech.
- Taiwan Smart Cloud Services: Engages in AI-related applications and provides supercomputing accelerators.
- YuJun Management Consulting: Focuses on transportation and healthcare, possessing international resources from companies like Continental and Volkswagen, with investments in collaboration with Medtronic in healthcare.
- AVA Angels: Primarily invests in early-stage startups in vertical SaaS, recently collaborating with AWS on the A2Growth Launchpad accelerator program.
- Energy Asia Capital: The second domestic sustainable venture capital planning for IPO (moved to sustainable investment last year), focuses on AI digital economy, digital transformation, autonomous vehicles, and robotics.
- National United Venture Capital Management Consulting: Focuses on information and digital sectors, defense and strategy, biotech and pharmaceuticals, precision medicine, green energy and renewable resources, semiconductors, and optoelectronics.
- Genesis Ventures: Concentrates on AI, startups, and strategic investments, with a focus on post-Series B and Pre-IPO investments.
- SparkLabs ###: Focuses on investing in AI, Deeptech, semiconductors, and digital economy software applications, adopting a model of “investment upon selection in the accelerator program,” concentrating on supporting early-stage startups.
- Huayang Ventures: Invests in AI, ESG, semiconductors, and more.
- Taiwan Enterprise Bank Management Consulting: Focuses on AI semiconductors, biotech healthcare, and digital economy.
From the distribution of partnering investors, it covers early angel investments to pre-IPO stages, with a wide range of industries. Lin Jun-xiu, Director of the Digital Industry Department of the MoDD, and Deputy Minister Lin Yi-ching stated that, although the investment targets primarily focus on AI and digital economy startups, AI can be applied across various industries, thus leaving room for all possibilities. However, currently, Taiwan’s biotech healthcare capacity combined with AI applications has a very high potential to enter the international market.
National Development Council Chair Liu Jing-ching stated that there are three main axes for promoting the development of the AI industry: establishing a digital software platform that connects large and small enterprises, promoting AI applications across a million businesses, and creating a nationwide AI lifestyle. The government is also actively amending laws, including the “Draft Act for Promoting Innovative Utilization of Data,” “AI Basic Law,” and “Amendments to the Industrial Innovation Act,” to enhance the resilience of AI development.
National Development Council Chair Liu Jing-ching stated that the government is undertaking various initiatives to promote AI development in Taiwan.
This article is collaboratively reproduced from: Startup Gathering