By Tim Hsu, Washington Group & Associates, Taipei, Taiwan

Taiwan’s government has a vision of transforming the country into a hub of biotech and medical R&D. Toward this end, Taiwan’s National Development Fund (NDF) provides grants to some companies in the biomedical field. According to the NDF’s 2019 annual report, around 70 biotech and medical companies so far have received NDF funding in accordance with the government’s investment projects.

One potential source of funding is the NDF Startup Angel Project. This is targeted toward entrepreneurs with innovative business ideas. Approximately 20% of the companies funded under this project have been in the biomedical field. Applicants may be sole proprietorships, partnerships, or companies -– and they may either have been established in Taiwan within the last three years, or be in the process of formation in Taiwan.

Startup Angel Project grants may be up to 40% of the applicant’s total budget according to its business plan. An applicant and its related entities may receive up to NTD 10 million under this program.

Applications require information about the applicant’s business goals, plan for reaching those goals, target market, competitive advantage, implementation timeline, staffing information, risk evaluations, anticipated benefits, and plan for using NDF funds (along with a three-year financial projection). The Taipei Computer Association reviews applications for Startup Angel Project funding.

Another potential funding source is Taiwan’s Implementation Project for Strengthening Investment in SMEs (small or medium-sized enterprises) (the “SME Project”). Slightly more than 20% of successful applicants under this program have been in the biomedical field. The SME Project is targeted toward SMEs with great potential for development, whose shares are not yet publicly traded. Funds may be used for investment, international technology transfer, or collaboration with other entities.

Early-stage ventures may receive up to NTD 30 million under this program, which is administered by the Small and Medium Enterprise Association (SMEA, subordinate to Taiwan’s Ministry of Economic Affairs (MOEA)). Applicants must be willing to share equity with SMEA and potentially with a venture capital firm on SMEA’s designated list of co-investors. The application process will take an estimated three to six months. To begin the process, prospective applicants may request the “Business Basic Information Form” from SMEA’s Investment Service Office.