Private investment and increased government support! The Industrial Development Agency's "Venture Capital Acceleration Innovation and Entrepreneurship Program" has upgraded its second round of applications for the first batch of 10 approved projects, whic
On the 29th, the Industrial Development Administration (IDA) of the Ministry of Economic Affairs held a press conference to announce the results of the first application round of the Venture Capital Acceleration for Innovation and Entrepreneurship Program and the launch of its second round. The program adopts a "private investment first, government support follows" approach, integrating Corporate Venture Capital (CVC), Venture Capital (VC), and government subsidy resources to help high-potential startups accelerate technology commercialization and market expansion. The first application round delivered outstanding results, with 10 projects approved and total government subsidies of approximately NT$176 million, expected to leverage approximately NT$1.25 billion in private investment. The enhanced second round is projected to generate more than NT$10 billion in overall investment over the next four years.
Director General Chiu Chiu-Hui stated that the Venture Capital Acceleration for Innovation and Entrepreneurship Program fundamentally transforms the traditional government subsidy review process through two key innovations. First, it replaces conventional technical evaluations with a market-driven mechanism. Unlike previous subsidy programs that focused primarily on academic and technical indicators, this program requires venture capital firms, which possess direct market insights, to conduct initial evaluations, commit investment, and share investment risks. This ensures that government resources are aligned with real market demand. Second, the program significantly streamlines the review process by reducing review time by approximately 70%. Traditional committee-based evaluations have been replaced with investment agreement-based reviews, shortening the approval period from more than 100 days to approximately 30 days, enabling startups to commercialize innovations more rapidly and seize market opportunities.
The IDA noted that 10 outstanding startups were approved during the first application round, covering five key industries including artificial intelligence (AI), semiconductors, drones, biotechnology, and the circular economy. Approved companies include Anghong Tech, AFA Technology, and MayCore Technology in the AI sector; Zhen Sheng in semiconductors; Quanrui Composite Materials in drone technologies; Chia Cheng Biotechnology, Taiwan Exosome, Pentum Smart Biomedicine, and Asia Translation Biotechnology in biotechnology; and Paide Sustainability Technology in the circular economy sector. Participating investors include Lee Chang Yung Chemical Industry Corporation, Eternal Materials, Raydium Semiconductor, Nan Shan Life Insurance, Pegatron & H&D Venture Capital, Feng Zhao Aerospace, UMC Macro Venture Capital, Taiwan Cooperative Venture Capital, Compal Electronics, TCI Co., Ltd., and Leezone Technology. Strong support from leading corporations demonstrates the enthusiastic response from industries across Taiwan.
The IDA also announced the official launch of the second application round, incorporating improvements based on experience from the first round. One major enhancement is the expansion of eligible investors. While the first round was limited to Corporate Venture Capital (CVC), the second round welcomes Venture Capital (VC) firms to participate jointly, significantly increasing available investment resources. In addition, a new investment incentive mechanism has been introduced. Startups securing a qualified lead investment of at least NT$30 million from an eligible venture capital firm may receive government subsidies of up to NT$20 million. If two or more qualified venture capital firms each provide follow-on investments of at least NT$20 million, the maximum government subsidy may increase to NT$30 million, further encouraging venture capital participation and investment.
Director General Chiu Chiu-Hui emphasized that the core objective of the Venture Capital Acceleration for Innovation and Entrepreneurship Program is to connect resources and help startups expand business opportunities. Building upon the achievements of the first application round, the program aims to strategically allocate funding, collaborate with leading venture capital firms, continue selecting projects through market-driven mechanisms, and leverage the strengths of larger enterprises to support emerging startups. Over the next four years, the initiative is expected to drive more than NT$10 billion in investment, accelerate the upgrading of Taiwan's core industries, and strengthen the nation's global competitiveness in innovation and industrial development.