The Executive Yuan on Thursday announced a plan to improve the investment environment for start-ups, with the aim of nurturing at least one “unicorn” — a start-up with a private valuation of more than US$1 billion — every two years and three more unicorns over the next six years.
The plan also aims to make Taiwan a regional hub for start-ups by increasing investment in newly formed businesses by NT$5 billion (US$170.61 million) annually over the next five years.
The term “unicorn” was coined in 2013 by Cowboy Ventures founder Aileen Lee to describe billion-dollar tech start-ups, because she believed such firms were rare and mythical. Since then, the number of so-called “unicorn companies” has grown rapidly around the world.
According to the latest data from industry tracker CB Insights, there are 228 unicorns worldwide. Of these, 113 are in the US, 62 in China, 13 in the UK and 10 in India. The Shanghai-based Hurun Research Institute’s report in December last year on the best 120 unicorns in the Greater China region had Ant Financial Services Group, Didi Chuxing and Xiaomi Corp topping the chart.
No Taiwanese start-up appears in either group’s tally, underscoring that local firms have a tougher time than their US or Chinese peers in raising money, reaching market scale, attracting talent and overcoming regulatory hurdles. The government’s announcement on Thursday shows a welcome commitment to promoting and supporting the start-up industry, as well as the nation’s ambition to play catch-up.
The Taiwan Institute of Economic Research last week said it now expects investor interest in Taiwanese start-ups to rise and predicts two firms are likely to have a better chance of becoming unicorns in two years: electric scooter maker Gogoro and artificial intelligence developer Appier.
Separately, AppWorks Ventures cofounder Jamie Lin (林之晨) told local media last week that there are several other local “quasi-unicorns” that are receiving more money from investors and he is positive that these firms could go public in the next two to three years.
The Cabinet is zeroing in on unicorns that have secured a record amount of dollars from venture capital firms and other sources in recent years to look for potentially successful start-ups in hopes of becoming a part of something big in the future.
However, achieving unicorn status is a tremendous challenge for start-ups. Most investors remain reluctant to invest in unlisted companies and the outlook for such firms is cloudy, with each being a special opportunity, but also a potential loss. The government’s policy could be a great help in overcoming initial financing problems and investment barriers.
However, to stay alive long-term and reach unicorn status, start-ups must catch the attention of world-class venture capital funds and receive continual injections of funds as they seek to build a market for their products and services. They must go global to achieve the necessary economies of scale, which means gaining exposure to bigger markets or regional trade blocs.
As Xiaomi chief executive Lei Jun (雷軍) has said: “Even a pig can fly if it stands at the center of a whirlwind.”
Whether a start-up becomes a unicorn depends on it seizing the right opportunity as it grows. The government can improve the investment environment, but much will depend on whether the start-ups take off on a scale that is meaningful and sustainable.
Because much of what former US president Donald Trump says is unhinged and histrionic, it is tempting to dismiss all of it as bunk. Yet the potential future president has a populist knack for sounding alarums that resonate with the zeitgeist — for example, with growing anxiety about World War III and nuclear Armageddon. “We’re a failing nation,” Trump ranted during his US presidential debate against US Vice President Kamala Harris in one particularly meandering answer (the one that also recycled urban myths about immigrants eating cats). “And what, what’s going on here, you’re going to end up in World War
Earlier this month in Newsweek, President William Lai (賴清德) challenged the People’s Republic of China (PRC) to retake the territories lost to Russia in the 19th century rather than invade Taiwan. He stated: “If it is for the sake of territorial integrity, why doesn’t [the PRC] take back the lands occupied by Russia that were signed over in the treaty of Aigun?” This was a brilliant political move to finally state openly what many Chinese in both China and Taiwan have long been thinking about the lost territories in the Russian far east: The Russian far east should be “theirs.” Granted, Lai issued
On Tuesday, President William Lai (賴清德) met with a delegation from the Hoover Institution, a think tank based at Stanford University in California, to discuss strengthening US-Taiwan relations and enhancing peace and stability in the region. The delegation was led by James Ellis Jr, co-chair of the institution’s Taiwan in the Indo-Pacific Region project and former commander of the US Strategic Command. It also included former Australian minister for foreign affairs Marise Payne, influential US academics and other former policymakers. Think tank diplomacy is an important component of Taiwan’s efforts to maintain high-level dialogue with other nations with which it does
On Sept. 2, Elbridge Colby, former deputy assistant secretary of defense for strategy and force development, wrote an article for the Wall Street Journal called “The US and Taiwan Must Change Course” that defends his position that the US and Taiwan are not doing enough to deter the People’s Republic of China (PRC) from taking Taiwan. Colby is correct, of course: the US and Taiwan need to do a lot more or the PRC will invade Taiwan like Russia did against Ukraine. The US and Taiwan have failed to prepare properly to deter war. The blame must fall on politicians and policymakers