The Taiwan Industry Development Agency (TIDA) has approved 10 projects in the first batch of its Venture Capital Acceleration Innovation and Entrepreneurship Program.
Industrial Development Administration Launches Venture Capital Acceleration for Innovation and Entrepreneurship Program; First Round Approves 10 Projects
Director General Chiu Chiu-Hui (8th from the right) of the Industrial Development Administration, Ministry of Economic Affairs, poses for a group photo with representatives and senior executives of startups and Corporate Venture Capital (CVC) firms approved in the first round of the Venture Capital Acceleration for Innovation and Entrepreneurship Program. (Photo by Reporter Wang Hsien-Kuo)
▲Director General Chiu Chiu-Hui (8th from the right) of the Industrial Development Administration, Ministry of Economic Affairs, poses for a group photo with representatives and senior executives of startups and Corporate Venture Capital (CVC) firms approved in the first round of the Venture Capital Acceleration for Innovation and Entrepreneurship Program. (Photo by Reporter Wang Hsien-Kuo)
Yesterday (July 29), Director General Chiu Chiu-Hui of the Industrial Development Administration (IDA), Ministry of Economic Affairs, held a press conference to announce the achievements of the Venture Capital Acceleration for Innovation and Entrepreneurship Program and the launch of its enhanced second-round application phase. Director General Chiu stated that the four-year program adopts a "Private Investment First, Government Support Follows" model, integrating Corporate Venture Capital (CVC), Venture Capital (VC), and government funding resources to help promising startups accelerate technology commercialization and market deployment. The first application round, announced in March, received an enthusiastic response. A total of 10 projects have been approved, with government subsidies totaling approximately NT$176 million, expected to attract approximately NT$1.25 billion in private investment. The second-round application officially opens today with expanded participation from Venture Capital (VC) firms. Over the next four years, the program is expected to generate more than NT$10 billion in overall investment impact.
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Director General Chiu pointed out that Taiwan's corporate investment and acquisition activity involving startups remains significantly lower than in the United States. In the U.S., approximately 90% of startup exits are achieved through mergers and acquisitions by corporations. In contrast, Taiwanese startups primarily rely on Initial Public Offerings (IPO) for fundraising and long-term development, while startup acquisitions account for only about 10% of exits. Lengthy technical review processes make IPOs time-consuming, creating challenges for startup exits. Chiu emphasized that IPOs should not be the only option. Corporate investment and acquisitions can promote external innovation while enabling companies to acquire advanced technologies and talented professionals, providing startups with more diverse growth opportunities.
Chiu further explained that the Venture Capital Acceleration for Innovation and Entrepreneurship Program fundamentally changes the traditional government subsidy review process through two key innovations. First, it replaces conventional technical evaluations with a market-driven approach. Previous subsidy programs focused heavily on academic and technical indicators, often overlooking actual market demand. Under the new program, investment decisions are first validated by venture capital firms that understand market needs, commit funding, and share investment risks, ensuring government resources are directed toward commercially viable projects. Second, the program greatly simplifies the review process by reducing review time by 70%. Traditional committee-based reviews have been replaced with practical investment agreements that proceed directly to final approval. As a result, the review period has been shortened from more than 100 days to approximately 30 days, enabling startups to commercialize technologies more quickly and seize market opportunities.
The Industrial Development Administration stated that the first application round approved ten outstanding startups across five key industries, including AI, semiconductors, unmanned aerial vehicles (UAVs), biotechnology, and the circular economy. AI-related companies include En-Hong Innovation, Afa Technology, and Meike Technology. Semiconductor projects include Zhensheng, while Quanrui Composite Materials specializes in key UAV technologies. Biotechnology recipients include Chia Cheng Biotechnology, Taiwan Exosome, Asia Precision Translation, and Pentium Smart Biomedical. The circular economy sector is represented by Better Sustainability Technology. Investment partners include LCY Chemical, Eternal Materials, Compal Electronics, Maxpro Venture Capital (UMC), H&Q Venture Capital (Pegatron), Raydium Semiconductor, Nan Shan Life Insurance, Fengzhao Aerospace, Taiwan Cooperative Financial Venture Capital, TCI Co., Ltd., and Lextar Technology. The strong participation of these leading corporate groups demonstrates the program's significant influence across Taiwan's industrial sectors.