Venture Capital - Taiwan

Taiwan

Highlights

The country in Taiwan is expected to reach a Total Capital Raised in the Venture Capital market market of US$139.50m in 2024.
In Taiwan, Early Stage leads the market with a projected market volume of US$66.27m in 2024.
When compared globally, the United States is forecasted to generate the most Capital Raised (US$136.6bn in 2024).
Taiwan's Venture Capital market is experiencing a surge in funding for tech startups, driven by government support and a growing entrepreneurial ecosystem.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Taiwan has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Investors in Taiwan have shown a strong preference for investing in technology and innovation-driven startups. This is due to the country's reputation as a global technology hub, with a highly skilled workforce and a supportive government that encourages entrepreneurship and innovation. Additionally, Taiwanese investors have a strong interest in industries such as biotechnology, artificial intelligence, and renewable energy, which are seen as the future drivers of economic growth.

Trends in the market: One of the major trends in the Venture Capital market in Taiwan is the increasing number of cross-border investments. Taiwanese investors are increasingly looking beyond their domestic market for investment opportunities, particularly in the United States and Southeast Asia. This trend is driven by the desire to diversify investment portfolios and tap into the growth potential of emerging markets. Additionally, Taiwanese startups are also seeking funding from international investors, as they recognize the value of global networks and expertise in scaling their businesses. Another trend in the market is the rise of corporate venture capital (CVC). Taiwanese corporations are increasingly setting up their own venture capital arms to invest in startups that align with their strategic goals. This trend is driven by the need for corporations to stay competitive and innovative in a rapidly changing business landscape. By investing in startups, corporations can gain access to new technologies, talent, and business models that can help them stay ahead of the curve.

Local special circumstances: Taiwan's geographic proximity to China has also had a significant impact on the Venture Capital market. Taiwanese investors have been actively seeking investment opportunities in China, attracted by its large consumer market and the potential for high returns. However, political tensions between Taiwan and China have created challenges for cross-border investments, as regulatory restrictions and uncertainty can hinder investment flows.

Underlying macroeconomic factors: The strong performance of Taiwan's economy has also contributed to the growth of the Venture Capital market. Taiwan has a stable and well-developed financial system, which provides a conducive environment for venture capital investments. Additionally, the government has implemented policies to support entrepreneurship and innovation, including tax incentives and funding programs. These factors have attracted both domestic and foreign investors to the Taiwanese market. In conclusion, the Venture Capital market in Taiwan is experiencing growth due to customer preferences for technology and innovation-driven startups, increasing cross-border investments, the rise of corporate venture capital, the geographic proximity to China, and the underlying macroeconomic factors. These trends and special circumstances have created a favorable environment for venture capital investments in Taiwan, driving the growth of the market.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.