The Three Spearheads of Entrepreneurship – “Investment Capital”, “Talent Pooling”, and “Facilitation of Deals” - 臺北產經資訊網

Against the backdrop of an age of rapid technological advances and a wave of globalization, a large number of cities actively promote entrepreneurship and innovation to enhance their standing in the global economy. Taipei City is actively committed to position itself as a hotspot for entrepreneurship in Asia. In a macroenvironment characterized by the spread of emerging technologies such as AI, 5G, and blockchain, startups not only revolutionize industrial operation modes but have also turned into a core driving force for economic growth. In addition to offer entrepreneurship opportunities to the younger generation, these enterprises create a substantial number of job opportunities and application fields for new technologies and thereby enhance overall industrial competitiveness.

With a view to further strengthening this momentum, the Taipei City Government has made a long-term commitment to perfecting the entrepreneurial ecosystem in the city. It aims to ensure the robust growth of startups in this city through the provision of funding support, policy guidance, and industry-academia collaboration. Taipei City Government strives to provide startups with all-inclusive support in the field of resources ranging from funding to talent and market launch assistance through the adoption of the aforementioned “Three-Spearhead” policy. The ultimate goal is to realize a rising number of promising entrepreneurship dreams and thereby further consolidate Taipei’s position as an entrepreneurship center in Asia.

To provide all-out support and foster the development of the entrepreneurial ecosystem in the city, Taipei City Government has rolled out a “Three Spearheads of Entrepreneurship” strategy, which rests on the three main pillars of “Investment Capital”, “Talent Pooling”, and “Acceleration of Deals”. This three-pronged strategy offers concrete solutions for challenges that startups face in the fields of capital needs, talent accumulation, and market links in the early stages.

Capital is one of the key factors ensuring the survival of startups in their infancy. However, a large number of startups face funding shortages and are, therefore, unable to successfully implement their innovative concepts. Consequently, the Taipei City Government has launched a series of funding support programs to assist such enterprises in easing their funding stress and thereby enable them to focus on product development and market promotion, rapidly validate their business models, and achieve breakthroughs in a fiercely competitive market.

■Expansion of Incentive and Subsidy Programs

The “Subsidies & Incentives for Taiwan Industry Program (SITI)” is a key policy measure adopted by the Taipei City Government to foster industrial development and encourage innovation and investments in the city. As of September 2023, two categories, namely “Accelerated Innovation” and “Theme-based R&D”, have been added to this subsidy program, which exclusively supports startup teams in the acceleration of market validation and fostering of R&D. The city government subsidizes the validation of business models of startup enterprises with a history of one year or more ranging from proof of concept (POC) to proof of business (POB). The maximum subsidy amount for each case is NTD $3 million.

In addition, case solicitation for “Theme-based R&D” subsidies is conducted in accordance with government policy objectives and industry trends. In 2023, the city government targeted “innovative green” technologies to support R&D initiatives by startups in the fields of eco-friendly technologies, services, and designs and thereby echo the goals of the global 2050 Net-Zero Emission Plan. In 2024, the city government added “AI-based innovative applications” as a new theme to assist enterprises in developing AI technologies and applications. The maximum subsidy amount for each case is NTD $2 million and the ultimate goal is to promote the widespread application of AI technologies in Taipei.

■Adoption of a New Subsidy Program for Top-Notch Startups

In addition to its focus on the early stages of startup development, the Taipei City Government is firmly committed to accelerating technological innovation by startup teams with global potential and fostering progress toward high-value business models. With a view to achieving these objectives, the city government rolled out its “ Subsidy Program for Top-Notch Startups” in September 2024. This program prioritizes the fields of “information and communication, hardware, software,” and “biomedicine.” Internationally competitive startup teams that have received investment recommendations are eligible to apply for funding subsidies available through this program in accordance with their individual needs covering the three stages of “Innovative R&D”, “Innovation Acceleration”, and “Branding”. The government offers subsidies of up to NTD $15 million per case with the goal of providing strong backing for startup enterprises.

Besides good ideas, a team equipped with diversified skills is the key to success for startup businesses. Taipei City Government is deeply aware of the vital importance of talent for success and failure of innovation and therefore aims to create a strong backing for startups through training programs, recruitment of international entrepreneurship talent, and fostering of talent exchanges and thereby transforming Taipei City into a center of talent conglomeration.

■Training Promising New Entrepreneurship Talent

Launch of On-Campus Entrepreneurship Training – Campuses are hotbeds for breeding new ideas, while entrepreneurship is the perfect way to inspire students to explore innovative solutions. A rising number of universities have, therefore, incorporated entrepreneurship training into their curricula with the goal of developing entrepreneurial consciousness as early as possible. On-campus resources and guidance also give students a more rapid understanding of the entrepreneurial ecosystem.

As of September 2023, the Taipei City Government collaborates with National Taipei University of Technology and National Taiwan University of Science and Technology in the promotion of on-campus entrepreneurship services. Creativity is converted into concrete action through enlistment of entrepreneurs who share current industry trends with the students and organization of student exchanges and internship vacancy matching. In September 2024, this concept took deeper roots on local campuses through the joint planning of on-campus entrepreneurship camps in cooperation with National Chengchi University, National Taipei University of Technology, and Tatung University. The goal is to harness the capabilities of startup industry instructors in Taipei City, ranging from business model creation and business plan writing to product design and marketing for entrepreneurship training at local colleges and universities. Finally, mock pitch drills give students a chance to present their achievements in the context of group competitions. If students encounter any difficulties in the course of these activities, they receive professional consultation and guidance through direct access to entrepreneurship resources in Taipei City.

All-inclusive Entrepreneurship Courses – Due to the fact that entrepreneurship is a step-by-step process, entrepreneurs require diverse resources and strategies at different stages of this process. In June 2024, the city government, therefore, designed tailor-made entrepreneurship courses (ranging from basic to advanced) for different entrepreneurs to meet their distinctive needs at each stage. The basic course stresses the fundamentals of entrepreneurship such as entrepreneurial resources, market trends, and financial management. The goal is to enable students to put forward clearly formulated, feasible business proposals after only 10 sessions. The advanced “Startup Acceleration Course”, on the other hand, targets startup teams that have already secured sufficient funding and plan to go international. Trainees who pass this course upon review are eligible to participate in a free intensive course lasting 20 hours. These courses encompass English fundraising and presentation skills, startup equity planning, and overseas market alignment strategies. A total of 11 promising enterprises have successfully advanced this year. They were able to showcase their innovative achievements at the Demo Day event held by the city government and successfully attracted the attention of investors.

This list includes representative Taipei startups such as Nanrun Co., Ltd., SAVFE Co., Ltd., Cancell Tech Co., Ltd., and PackAge+. They not only demonstrated their innovative technologies and products but also engaged in matching negotiations with renowned venture capital organizations such as the National Innovation and Entrepreneurship Association, Wistron, and Huawei Venture Capital to further expand opportunities for business cooperation.

■Global Passes Facilitate Linkage to International Markets

With a view to attracting a rising number of international entrepreneurs to relocate to Taipei City and assisting local startups in the expansion of international markets, the Taipei City Government launched its “Taipei Nexus” program in March 2024. “Global Pass”, which represent the highlight of this program, entitle holders to maximum subsidies of USD$ 2,000 for shared workspaces occupied by their startups with an overseas presence. All startup businesses that have been legally registered in Taipei City for less than 12 years are eligible to apply for such passes. As of October, the city government cooperates with 11 international shared workspace providers spanning 21 cities in 10 countries in the Asia-Pacific region, including Japan, Korea, Singapore, Thailand, the Philippines, Vietnam, and Australia. These providers offer a total of 109 office locations.

These shared workspaces do not merely serve as offices and meeting rooms. International workspace operators such as The Flexi Group, JustCo, CIC Tokyo, One&Co, and WeWork offer additional services such as business matching, information exchange, and professional consultation provided locally to assist startups in the rapid linkage to local resources and networks. These shared workspaces not only function as work locations but also as global platforms for innovation and cooperation. They provide startups with flexible, diversified choices and open up new opportunities for global expansion.

With a view to upgrading inter-municipal cooperation modes, the city government forges “Startup Partners” with official or third-party organizations in sister or twin cities to foster collaboration and sharing of resources. Noteworthy examples include Fukuoka Growth Next (FGN), TechShake (Manila’s largest international startup community), Korea Creative Content Agency in Seoul (KOCCA), Korea Startup Accelerators and Early Stage Investors Association (KAIA), Goyang Investment Authority (GIA), and UTokyo Innovation Platform (IPC). These organizations recommend professionals who engage in exchanges in Taipei City. They also provide relevant services and resources such as startup guidance, overseas investments, and Taiwan Employment Gold Cards and visas. The ultimate goal is to give a rising number of professionals an opportunity to witness the startup potential of Taipei City and enlist outstanding talent to settle in the city.

Many startups and SMEs that offer exceptional products still face market access obstacles and marketing deficiencies. In September 2024, Taipei City Government therefore revealed its “Taipei SME Procurement Program,” which aims to ensure the seamless alignment between startups/SMEs and market demands. Supportive measures, including government procurement and market expansion, allow the rapid commercialization of entrepreneur achievements.

This program relies on “Taipei-Origin Promotional Station (TOPS)” to enlist startups and SMEs in the city to showcase their high-quality products and services on the website and encourage all types of enterprises, juridical persons, and government agencies to participate in the procurement scheme. All businesses that meet the Standards for Identifying Small and Medium-sized Enterprises and are legally registered in Taipei City are eligible to apply for supplier status. The platform divides products into the following five categories: lifestyle products, biotech & health supplements, Tech-Appliances, sustainability & ESG, and cultural & creative design to enable enterprises to locate suitable suppliers in different fields. As of October 25, the platform features 287 purchasers, 165 suppliers, and 122 listed products. It creates more opportunities for public exposure of businesses with outstanding achievements.

Taipei City Government has also formed a professional consultant team to more accurately link demand to supply in addition to the provision of multidimensional guidance encompassing the application of digital tools, brand marketing, sustainability transformation, and proposal guidance. Individual needs of enterprises at different stages are satisfied through two different guidance modes (general and advanced). Enterprises, juridical persons, or government agencies registered on the TOPS platform that purchases listed products offered by startups or SMEs have an opportunity to receive a commendation and a monetary reward provided they reach a specified purchase amount or meet certain requirements. In addition, a “Sustainability and Shared Prosperity” award has been created for the platform to recognize innovative cooperation initiatives and joint sustainability action plans with a view to encouraging enterprises, government agencies, juridical persons, and startups and SMEs in Taipei City to team up for the creation of sustainability value in line with ESG and the SDGs concepts officially adopted by the UN.

TOPS is not merely a procurement tool. It also serves as a key reference for a better understanding of market demands and product adjustments by startups. In the future, enterprises or juridical persons will have the ability to select excellent cooperation partners via this platform, which will in turn enable startups and SMEs to successfully enter markets and expand business opportunities.

Over a long period, the Taipei City Government has adopted diversified policies to support innovation and entrepreneurship and provide valuable assistance to entrepreneurs in mitigating risks and raising their competitiveness through various tools. The “Three Spearhead” policy aims to further attract global talent and capital, intensify international links, and turn Taipei City into a hotspot and one of the friendliest cities for entrepreneurs in the world. The city government relies on these efforts to ensure ongoing progress on the path toward transforming Taipei into an international capital for entrepreneurship and strives to provide all-out support to entrepreneurs for the realization of their entrepreneurship dreams.