Startup Funding in Taiwan: How to Raise Money with VC (Gaviann Tseng) and Angel Investor (Elias Ek)
- Erdinc Ekinci
- Apr 30
- 4 min read
Updated: May 6
Earlier this month, I hosted an in-depth and candid fireside chat featuring two key figures from Taiwan’s startup investment landscape:
Gaviann Tseng, Venture Capitalist and Corporate VC
Elias Ek, Angel Investor, Entrepreneur & Community Builder
Together, we explored what it really takes to raise capital and grow a startup in Taiwan, whether you’re a local founder or building as a foreigner. The insights were sharp, honest, and based on years of experience investing and building in the region.
Want to dive deeper? Check out the full YouTube recording of the panel discussion below.
Here’s a breakdown of the core takeaways from our conversation—expanded from our original post, with extra commentary pulled directly from the full transcript:
1. Taiwan's Startup Scene Is Growing Fast
Taiwan has undergone a remarkable transformation over the past decade. As our speakers shared, the startup ecosystem has shifted from "almost nonexistent" to one with active VC participation, global ambitions, and increasingly vibrant tech verticals.
Key sectors include:
AI & machine learning
Electric vehicles (EV)
Semiconductors
B2B SaaS and industrial IoT
While still recognized globally as a manufacturing powerhouse, Taiwan is now positioning itself as a launchpad for the next wave of deep-tech and hardware-software convergence. The local ecosystem increasingly supports full-stack innovation—from chip to cloud—creating fertile ground for founders with bold, technical visions.
2. Local VCs Tend to Be Risk-Averse
A recurring theme: Taiwanese VCs, especially CVCs (Corporate Venture Capital arms), tend to be conservative in their investment strategy. Gaviann emphasized that:
Many Taiwanese investors prioritize synergy with their existing businesses.
They want startups that demonstrate revenue, proven market fit, and local relevance.
"They don’t really take risk."
Deals are more attractive when there's a predictable ROI or when startups are solving urgent problems for large corporates (e.g., TX1’s cybersecurity case with TSMC).
3. Legal Structures Matter
Both Elias and Gaviann emphasized a crucial yet often overlooked point: while Taiwan is an excellent place to build and operate a startup, it’s not always the ideal jurisdiction to incorporate—especially if you're planning to raise venture capital internationally..
Taiwan has a 20% dividend tax on foreign payouts.
SAFE and KISS notes are not legally supported under Taiwan’s company law.
VC dealmaking is often slowed by bureaucracy (e.g., MOEA investment reviews).
This is why most internationally-minded startups set up their HQ in:
Delaware (US)
Singapore
BVI/Cayman
You can operate in Taiwan but hold equity elsewhere to streamline investment.
4. Being a Foreigner Has Its Friction—But Also Potential
Elias, who has called Taiwan home for over 25 years, offered a grounded perspective on what it truly means to be a foreign founder in the local startup ecosystem. The reality? There are very real hurdles, but also unique advantages if you play it right.
Language remains a key barrier in pitching and selling.
Local trust is slow to build but very sticky once earned.
Banks, investment commission processes, and B2B client acquisition are harder for immigrants.
That said:
Taiwan is one of the most culturally open societies in Asia.
For hardware startups, the local supplier ecosystem is unbeatable.
It’s possible to find a niche, especially by combining foreign perspective + local execution.
Elias’s advice: don’t try to be “local” in every way—instead, lean into your difference while showing long-term commitment. That mix of global insight and local respect can be a powerful formula.
5. What Investors Really Look For
One of the most valuable parts of the conversation came down to this core question: What actually gets a founder funded in Taiwan? Gaviann and Elias broke it down with clarity and experience.
Gaviann’s Top 3 Criteria:
Founders with vision and ambition
Teams with proven execution capability
Products solving real pain points with clear differentiation
Elias added:
Coachability is essential: "Founders who refuse to listen usually fail."
A deep understanding of go-to-market and customer acquisition strategy.
Clear articulation of how the investor’s capital will be used and converted into growth.
They both emphasized: Investors don’t just fund ideas. They fund founders who can deliver.
6. Red Flags for Investors
Both our speakers highlighted several red flags that make investors step back—some common globally, others particularly relevant in Taiwan’s more conservative investment climate:
❌ Founders chasing media exposure and pitch competitions over building traction
❌ Uncoachable personalities or argumentative behaviors
❌ Lack of understanding of the competitive landscape or viable alternatives
Overexposure early on can signal a lack of focus. Founders should aim to be respected more for execution than exposure.
7. Taiwan Is a Perfect MVP Testing Ground
Elias shared vivid examples of startups building full-fledged hardware prototypes in Taiwan for under $40K—a figure that would barely cover early-stage R&D in many other ecosystems. Why is this possible?
Taiwan has a dense cluster of world-class engineers and suppliers.
You can visit 10 factories in one day.
The quality-cost ratio is among the best in the world.
Even for software and AI, Taiwan offers a supportive, fast-moving, and affordable environment to validate MVPs.
Final Thoughts
As the session wrapped up, both Gaviann and Elias shared insightful reflections that resonate deeply for anyone looking to succeed in Taiwan’s startup landscape:
✅ Taiwan is a land of opportunity—but it requires founders to adapt to its culture, regulations, and pace.
✅ Foreign founders should proactively build networks, local partnerships, and legal structures suited for scale.
✅ Investors in Taiwan are looking for clarity, traction, and global potential. Show them why you're the right bet.
As Gaviann said: "Trust your government. Ask your embassy for help. Use the resources available to you."
And from Elias: "Startups don’t get better by waiting. Just get to it."
Thanks again to both speakers and our amazing audience for a session full of candor, clarity, and actionable insights. Taiwan may be Asia’s best-kept startup secret — and it's never been a better time to build.
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