Research

In recent years, the global venture capital market has been shaped by economic uncertainty and tighter funding conditions, leading to a more cautious investment environment and a broad decline in deal activity. However, Taiwan’s startup investment landscape has followed a different trajectory. Across both VC and C/CVC deals, deal volume and total funding have in many cases exceeded pre-pandemic levels. This suggests that Taiwan’s startup ecosystem has remained relatively active despite global headwinds, while also demonstrating increasing resilience and maturity over time.

Taiwan’s startup investor landscape comprises angel investors, venture capital (VC), corporate investors and corporate venture capital (C/CVC), the National Development Fund (NDF), and foreign investors. Each group plays a distinct role across different investment stages and sectors. Among them, C/CVCs have long been the primary drivers of activity, with their share of total deal volume rebounding over the past three years, underscoring the central role of corporate investment in the ecosystem.

Angel investment activity has increased steadily since 2016, reaching a peak in 2021 and reflecting growing momentum in early-stage investment. Although deal volume declined slightly after 2022, it has remained relatively stable overall, suggesting that angel investors have not withdrawn from the market but have instead adopted a more cautious approach.

Seed and angel-stage investments continue to dominate angel investment activity. From 2015 to Q1 2025, these early-stage investments accounted for approximately 65% of all angel investment deals. In recent years, however, angel investors have increasingly participated in Series B and Series C rounds, often co-investing with C/CVCs. This shift points to a strategy of greater risk diversification and resource integration. By sector, health care remains the primary focus of angel investment, followed by hardware, commerce and shopping, financial services, and transportation.

Changes in the VC investment structure have been particularly pronounced in recent years. The year 2021 marked a turning point: while overall deal volume declined slightly thereafter, the number of large-scale investments increased significantly. Early-stage investments (pre-Series A) continued to account for more than 70% over the past five years, although this share declined to 64.9% in 2024. At the same time, mid-stage investments (Series B to Series C) rose to 29.1%, indicating a gradual shift of capital toward more mature startups. From 2021 to Q1 2025, the share of large deals exceeding US$10 million increased from around 10% to nearly 20%, with healthcare-related deals as the primary driver. Overall, VC investment is gradually shifting from early-stage to mid-stage, reflecting a growing emphasis on startup maturity and growth potential.

Corporate investors and corporate venture capital (C/CVC) have consistently played a leading role in Taiwan’s startup investment landscape. Since 2021, both deal volume and investment value involving C/CVC participation have increased significantly. By 2024, deal volume had nearly doubled compared with 2021, while the cumulative number of large deals exceeding US$10 million reached 64, primarily centered on the energy and healthcare sectors.

Over the past five years, energy, health care, and hardware have emerged as the three core investment sectors for C/CVCs. This pattern reflects the close alignment between corporate investment and core business development, as well as the strategic role of these investors within supply chains to support long-term corporate objectives. By stage, C/CVC participation in early-stage investments (pre-Series A) has consistently exceeded that of VC. Meanwhile, since 2023, the share of mid-stage investments has also increased, indicating a growing convergence in investment behavior across investor types.

The National Development Fund (NDF) continues to serve as a key pillar of Taiwan’s startup ecosystem. From 2020 to Q1 2025, the NDF participated in a total of 375 investment deals across 40 sectors, with healthcare, hardware, and cultural content and entertainment as its primary areas of focus. According to publicly available data, the NDF has mobilized hundreds of billions of NT dollars in private capital through its various investment programs. Through a dual approach combining direct investment and participation through VC funds, it continues to support startup growth and broader industrial development.

Foreign investors have accounted for around 8% of total deal volume over the past five years, representing a slight decline compared with earlier periods. However, the share of large deals exceeding US$10 million has increased significantly. These investments are primarily skewed toward the health care and hardware sectors, indicating a more targeted investment strategy. At the same time, Taiwanese investment institutions are actively expanding into international markets through overseas offices, cross-border funds, and strategic partnerships, further strengthening their integration with the global startup ecosystem.

Taken together, Taiwan’s startup investment landscape reflects both differentiation and complementarity across investor types. Capital is gradually focused on mid-stage investments, while C/CVCs continue to play a pivotal role. Looking ahead, sustaining early-stage investment momentum in a more cautious environment, while expanding cross-border engagement to strengthen the connection between Taiwan’s startups and global markets, will be critical to the ecosystem’s continued development.