The government's goal in promoting innovation and entrepreneurship is to bring about industrial transformation and establish an environment friendly to new businesses and creative talent, Premier Mao Chi-kuo said at today's Cabinet meeting.
After hearing the National Development Council's (NDC) report on assistance schemes for startups, Premier Mao said the government has developed a range of innovative fundraising channels over the past two years, including business subsidies, financing programs and investment matchmaking. Since 2014, around 25,000 startups have received more than NT$42 billion (US$1.28 billion) in financial support, which has eased many of the difficulties of raising capital in the initial stages.
According to the NDC, the "From IP to IPO" (from intellectual property to initial public offering) program has helped 63 businesses get on their feet, raised funds of NT$249.18 million (US$7.60 million), and cooperated with well-known accelerators in Silicon Valley. Under the Business Angel Plan, a total of NT$622 million (US$18.96 million) has been provided in guidance funds, and a Demo Salon will be held in November to match startups with investors.
As for business startup loans, the government has helped secure loans of NT$5.04 billion (US$153.66 million) for young entrepreneurs, NT$10.22 billion (US$311.59 million) for small businesses, and NT$26.50 billion (US$807.93 million) for innovative microenterprises.
On investment in startups, the HeadStart Taiwan program has approved investments of NT$13.60 billion (US$414.63 million) by five venture capital firms. In April this year, the Financial Supervisory Commission began allowing the private sector to operate equity-based crowdfunding platforms, and four platforms have been greenlighted so far.
Meanwhile, the Go Incubation Board for Startup and Acceleration Firms, launched in January 2014 by the over-the-counter Taipei Exchange, has helped 67 microenterprises to raise NT$204 million (US$6.22 million) in capital.
Regulations governing fundraising have also been relaxed. The Company Act was amended to include a new chapter on closed corporations, allowing startup founders to negotiate with investors on the corporate chapters or contract provisions most advantageous to company operations. The Limited Partnership Act also was enacted to allow for new types of business organizations.