Venture Debt - Taiwan | Statista Market Forecast

Total Capital Raised in the Venture Debt market market in Taiwan is forecasted to reach US$12.26m by 2024.
Traditional Venture Debt holds the dominant position in the market with a projected market volume of US$11.34m by 2024.
When compared globally, the majority of Capital Raised is expected to be generated the United States (US$22.4bn by 2024).
Taiwan's Venture Debt market is seeing a surge in interest from tech startups looking for alternative capital raising options.

Definition:

The Venture Debt market refers to a form of equity and debt financing combination, which is used to finance early stage and growth stage capital-backed companies. Besides equity funding rounds, business can seek venture debt that minimizes ownership dilution and governance requirements to increase the cash runway to reach the next milestone or even provide a cushion for delays.

Structure:

The market consists of two segments:
- The Traditional Venture Debt market refers to a form of debt financing that is often provided to venture-backed companies to either buy new equipment, meet a deficiency of short-term capital, or support expansion plans.
- The Growth Venture Debt market refers to a form of debt financing that is often structured with warrants or options, which provides a rapid development stage in which businesses can support their long-term oriented growth plans.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Key players in this market are companies such as Wells Fargo and Hercules Capital.

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Venture Capital
Venture Debt funds are sponsors by governments

The Venture Debt market in Taiwan has been witnessing significant growth and development in recent years.

Customer preferences: In Taiwan, there is a growing preference among entrepreneurs and startups to explore alternative financing options such as venture debt. This is primarily driven by the desire to raise capital without diluting equity, as well as the need for additional funding to support growth and expansion. Startups in Taiwan are increasingly recognizing the benefits of venture debt, which provides them with the flexibility to access capital quickly and efficiently, while also allowing them to retain ownership and control over their businesses.

Trends in the market: One of the key trends in the Venture Debt market in Taiwan is the increasing number of venture capital firms and financial institutions offering venture debt financing options. This trend is driven by the growing demand for alternative financing solutions and the recognition of the potential returns that can be achieved through venture debt investments. As more players enter the market, there is increased competition, which is leading to more favorable terms and conditions for borrowers. Another trend in the market is the focus on technology and innovation. Taiwan has a vibrant startup ecosystem, particularly in the technology sector, and venture debt is seen as an attractive financing option for these companies. Venture debt providers are increasingly targeting technology startups, offering them tailored financing solutions that are aligned with their unique needs and growth prospects.

Local special circumstances: Taiwan has a strong manufacturing and technology sector, which has been a driving force behind the growth of the Venture Debt market. The country is known for its expertise in areas such as semiconductors, electronics, and biotechnology, and many startups in these sectors are seeking venture debt financing to support their research and development activities, as well as their expansion into new markets. Additionally, the government of Taiwan has been actively promoting entrepreneurship and innovation through various initiatives and programs. This has created a favorable environment for startups and has contributed to the growth of the Venture Debt market. The government has also introduced policies and regulations that support the development of the venture capital and venture debt industries, further fueling the growth of the market.

Underlying macroeconomic factors: The strong economic growth and stability of Taiwan have played a significant role in the development of the Venture Debt market. The country has a well-established financial system and a favorable business environment, which has attracted both domestic and foreign investors. The availability of capital and the low interest rate environment have made venture debt an attractive financing option for startups in Taiwan. Furthermore, the increasing interest from international investors in Taiwanese startups has also contributed to the growth of the Venture Debt market. Foreign venture capital firms and financial institutions are increasingly looking to invest in Taiwanese startups, and venture debt is seen as a way to participate in the growth potential of these companies. In conclusion, the Venture Debt market in Taiwan is witnessing significant growth and development, driven by customer preferences for alternative financing options, the focus on technology and innovation, local special circumstances such as the strong manufacturing and technology sector, and underlying macroeconomic factors including government support and a favorable business environment.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.