Taiwan's National Development Council (NDC) has relaxed regulations on applications for funding under its jurisdiction to better support and encourage investments in AI (artificial intelligence), big data and biomedicine sectors.
NDC said that in order to encourage local venture capital firms to introduce funds from abroad, invest in new local startups or assist the startups in developing international markets, the existing restrictions governing capital support from the National Development Fund (NDF) for local venture capitalists will be dropped. Under the existing rules, the maximum investment by the NDF in any given venture capital firm cannot exceed 30% of its paid-in capital, with the ceiling figure set at NT$1 billion (US$34.03 million).
After the relaxation of the rules, the maximum investment by the NDF in any given new startup will double to NT$10 million from the existing NT$5 million, and angel investors and new startup management teams will be allowed to repurchase later the shares held by the NDF at the cost of 1.5 times their original unit prices, down from the existing three times, so as to encourage more private investments in new startups.
The NDF management will also invite those with abundant experiences in creating new ventures or making investments to set up professional guidance teams to help explore new investment targets and offer assistances to invested startups, so as to boost the overall investment momentum of the NDF.