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Summary of article:
The surge in Taiwanese stocks this year has drawn out venture capital funds, making it more difficult for early-stage startups to raise money. The ratio of seed and angel rounds has declined significantly, and so some companies have turned overseas to seek funding.
taiwan stock The AI craze has made investors a lot of money, but it has become harder for early-stage startups to raise money. Business Insider reported that the bright returns in the listed chip supply chain have attracted funds to the stock market, making it difficult for new entrepreneurs to persuade investors to pay for their support, and so some companies have turned to foreign investors.
Taiwan shares have risen more than 50% this year, the biggest rise among the world’s major stock markets.TSMC Spans the chip design, advanced packaging, network communications and server industries. The price of about 7% of Taiwan’s listed shares has doubled.
Caleb Chu, founder of Nova Studio, a new venture investment institute in Taiwan, pointed out that the stock market boom has sucked up venture capital and money invested in new ventures, and investors also prefer Series B, C and pre-IPO companies with a clear recovery path.
According to data from Findit, a new startup tracking platform commissioned by the government, among Taiwan’s venture capital investment cases, the proportion of seed and angel rounds fell from 38.4% in 2021 to 17.1% in 2024.
Anderson Chen, founder and CEO of industrial AI start-up Operon Solutions, said the semiconductor market is so good that the stock could bring 10x returns. In comparison, even if a new start-up successfully goes public, investors may earn only two or three times as much. He pointed out that with Taiwan’s tech talent and semiconductor expertise, it has become easier for Taiwanese deep-tech startups to raise funding overseas, but that may not be the case in Taiwan.
Summary FAQ
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Because stock market returns are impressive, funds are more willing to flow into listed chip and AI-related companies, and investors also prefer targets with a clear recovery path, making it more difficult for early-stage startups to attract investment.
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Taiwan stocks have risen more than 50% this year. The rally has spread to many technology groups, including TSMC, which has attracted money to the stock market, further reducing the amount of money invested in venture capital and new startups.
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According to data from Findit, among Taiwanese venture capital investment cases, the proportion of seed and angel rounds has fallen from 38.4% in 2021 to 17.1% in 2024, showing that early-stage investment has decreased significantly.
