Deal focus: Taiwan AI draws global investors

Venture capital has gained momentum in Taiwan over the past two years. Local start-ups received $219 million in funding across 13 disclosed deals in 2014, the highest level in six years, although GIC Private's investment in music streaming platform KKBOX accounted for nearly half of that.

So far this year, there have been seven disclosed investments worth a collective $94 million, compared to $88 million for 15 deals in 2013 as a whole, according to AVCJ Research.

The 2015 total includes a $23 million Series B round for Taipei-based advertising technology company Appier, which was announced last week. Its investors include UOB Venture Management (UOBVM), a VC unit of Singapore bank UOB, Japan's Jafco, Silicon Valley-based TransLink Capital, and Taiwan corporate VC arm MediaTek Ventures. Existing backer Sequoia Capital also participated.

The three-year-old company uses artificial intelligence (AI) and machine-learning technology to optimize advertising campaigns for brands and analyze what users will do on different smart device screens - ranging from smart phones to tablets to smart watches - at different times of the day.

"We're living in a post-mobile era, the era of cross screen," says Chih-Han Yu, CEO and co-founder of Appier (pictured center). "Cross screen is no longer optional, but advertisers trying to reach customers online face mounting complexity as the number and types of screens multiply. And yet Asia lacks AI scientists to help make sense of this huge amount of information."

Yu has long been fascinated by AI, robotics and machine learning technology. While a student at Harvard and Stanford, he developed a self-adapting robotics system to help polio patients walk correctly, and helped create Stanley, an autonomous car that became the basis for Google's self-driving car project. AI-based cross screen analytics was the next step.

"According to our research, eight markets experienced growth in both two- and three-device usage in the first half of 2015, so this trend is only set to continue," Yu says. "AI can help resolve this complexity and make cross screen easy for businesses here in the region."

The start-up has worked with more than 500 advertising clients since inception. It reported a 300% increase in revenue between 2013 and 2014, and a 600% increase since Sequoia led a $6 million Series A round in June 2014. The latest funding has been earmarked for R&D, as well as for further expansion within Asia. Appier's international investors are expected to assist in this effort.

"UOBVM is very strong in Southeast Asia, a key market for us. Jafco specializes in helping companies strengthen their position in Japan as well as expand across Asia, with a particular emphasis on those of us in the technology sector. Both TransLink and our original partner Sequoia exemplify Silicon Valley's entrepreneurial heritage, while MediaTek is strong in Taiwan," Yu adds.

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• Topics
• Venture
• Technology
• Media
• Greater China
• Taiwan (China)
• Venture
• Media
• TMT
• UOB Venture Management
• Sequoia Capital
• Translink Capital
• JAFCO