According to National Development Council (NDC), which is the management organization for NDF, the Taiwan government’s National Development Fund (NDF) started implementing a 5-year Startup Business Angel Investment Program specifically for angel investment in startup businesses in late 2018. As of August 31, 2022, NDF had invested in 202 qualified startup businesses with a total approved angel investment of NT$3.162 billion (US$102 million).
According to NDC, the private sector invested NT$8.818 billion in these start-up companies thanks to the angel investment, while these start-up companies themselves invested a total of NT$11.980 billion in operating capital.
According to NDC Minister and NDF Convener Kung Ming-hsin, the program’s initial NT$1.0 billion budget was intended to provide startup businesses with subsidies; however, in order to support startups on a mid- to long-term basis, the funding model was changed from subsidies to venture capital investments, and the budget was increased to NT$5.0 billion. According to Kung, the funding could be increased to NT$10.0 billion if demand from startup companies rises.
By August 31, 2022, NDF had added stake investments in some of the startup companies that had already received angel funding, bringing the total new investment for 40 enterprises to NT$328 million. In addition, the NDF’s increased investment had prompted private investors to increase their stake investments by a total of NT$2.549 billion.
Su Lai-shou, the executive secretary of the NDF, claims that the organization has delivered a good return on investment. Su claimed that from its establishment in 1973, NDF has created a cumulative total return on investment of approximately NT$330 billion, or an average of roughly NT$7.0 billion year, excluding investments in Taiwan Semiconductor Manufacturing Company (TSMC). According to Su, the cumulative overall return on investment, including investments in TSMC, surpasses NT$1,300 billion annually on average.
