
Taiwan start-ups must think globally - AVCJ Forum
Taiwanese entrepreneurs should leverage local technology talent and use their home market as a testing ground for products and services that have global appeal, industry participants told the AVCJ Taiwan Forum.
“Just as some start-ups in Singapore and Israel that have set up holding entities in their home countries but generate most of their revenue from overseas markets, Taiwanese entrepreneurs should follow suit,” said Jacky Wang, a venture partner with 500 Startups. “With the beneficial conditions Taiwan has, it should be a very good first step for local start-ups to test if their models are viable and then replicate them in other regions.”
Despite being a leading technology manufacturer, Taiwan has yet to see the emergence of its first unicorn. The territory's small population of 23 million makes it difficult for start-ups to achieve scale. The authorities are seeking to remedy the situation by improving the investment environment with a view to nurturing at least one unicorn every two years.
One start-up that has already shifted its focus to international markets is KKday, an online travel services company founded in 2015. It has received four rounds of funding over the past two years, most recently an extended Series B round of undisclosed size led by the Alibaba Entrepreneur Fund and Line Ventures.
“When we launched the website we first developed English, Korean and Japanese language versions, and a Chinese version was added later. Looking back, I think we made the right decision because businesses in Taiwan like start-ups that have international exposure and can bring them a more diversified clientele,” said Ming-ming Chen, founder and CEO of KKday.
International exposure is becoming an increasingly important factor in PE and VC investment decisions. “Companies we like must not only have cutting-edge technologies but also have the capacity and willingness to expand overseas. Nowadays, entrepreneurs should be able to do marketing as well as their core business,” said Tina Cheng, a managing partner at Cherubic Ventures.
Other investors agree that the ability to tell a good story - explaining clearer how a business model works and what problems it can solve - is an essential part of the fundraising process. Yinglan Tan, CEO and founding managing partner at Insignia Venture Partners, noted while the entrepreneurs in Taiwan are skilled they are not necessarily as strong in selling themselves to investors.
“Entrepreneurs in other places will use any way possible to get funding, but those in Taiwan are very modest and sometimes too polite. While both are good features, there needs to be a balance between them,” he explained.
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