如何協助中小企業取得創投基金

Combining Business Incubation

and VC Funds

Ching-Jiunn Chang
( 張清俊 )
SMEA_Incuabtion
 報告主題
本次報告擬涵蓋三個部份：
1. 介紹台灣創投業的發展與例示
創投機制與創業育成的合作模式
2. 從一個創投公司的經驗看「如何
評估與投資創業育成中心的廠
商」
( 現場資料 )
3. 實務課題探討 ( 現場資料 )
SMEA_Incuabtion
 Part I: Outline
• An Overview of Taiwan Venture Capital Industry
• Business Incubation and Venture Capital
• cases
 Incubator at ITRI
 Vista Incubation Technology Corporation
– activity
 Venture Fair 2001

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 An Overview
of Taiwan Venture Capital industry

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 New Venture Funds Founded per Year
(1984-2000)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
50 250
46
The inception
40 of incubator 38 200
(1996)
31
No. of VC

30 150

Acc. No.
28

20 100
14
10 7 6 50

0 0
1985 1990 1995 96 97 98 99 2000

Year

Start from
No. of VC Acc. No.
1984

SMEA_Incuabtion
Source: 2000 Taiwan Venture Capital Industry Annual Report
 Capital Formation of Taiwan VC industry
(1984-2000)
140

127.09

120

103.44
100

80
72.94
B $NTD

60

42.64
40
30.3 30.5
25.47
23.65
18.71 17.17
20 14.7
13.57
8.92 10.56 11.76
3.34 5.27 4.01
6.76
1.8 3.65
0.20.2 0.20.4 0.81.2 0.6 1.54 1.93 1.64 1.2 1.81 1.13
0
1985 1900 Year 1995 2000
Annual Total Acc. Total
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Source: 2000 Taiwan Venture Capital Industry Annual Report
 Earnings of Taiwan Venture Funds

7
6.52
6.33
6

4 3.81
3.28
3
EPS

2.43 2.51
2 2.04

1
0.66 0.67
0.12 0.26 0.28 0.2
0 -0.03
-0.66
-1 -1.23
-1.47
-2 94 95 96 97 98 99 2000
Average (Total)
Year Average (The Earliest
SMEA_Incuabtion Ten VCs)
 Where does the Venture Capital come from ?
— Funding Source of Taiwan VCs ( Fy 2000)

Others
Foreign Companies
(1% <)
(7.3%)

•Hi-tech industry 9.79%

Local •Traditional industry 33.03%
Individuals •Investment Institution 12.61%
Local Companies
(21%) •Insurance companies 8.66%
(71%) •banks 5.4%
•government 1.73%
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•otthers
 Definition of investing stages
-- adopted from NVCA

❧ seed stage investing: invest before there is a

real product or company organized
❧ early stage investing: provide capital to start
up a company in its first or second stages of
development
❧ expansion stage financing: provide needed
financing to help a company grow beyond a
critical mass to become more successful

SMEA_Incuabtion
 Portfolio Analysis by various stages
By Project No. By Dollars
( total 6343 ) ( total 125.5B $NTD )
1.18% 7.93%
7.98%
21.94% 23.84%
21.16% 23.87%

45.81%
45.32%

Expansion Mezzanine
Startup SMEA_Incuabtion
Seed Turnaround
Geographic Distribution of VC Firms in Taiwan
164
1 Vc in Taoyan
VCs
Taipei
4 VCs in city
Hsinchu city
7 VCs
in
Taipei
County

5 VCs in Over 96% VC funds

Kaoshung city
and over 50%
incubators are
1 VCs in located in northern
Taiwan
Kaoshung county
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 18
5
5

1
1

2
2
3
2
2

3
1
6
2

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 Some hard luck to VCs in Taiwan
• The blow out of internet bubble (2000-2001)
• Cancellation of tax incentives
• Drop-off of economic growth

 Opportunities
Venture companies at technology incubators were
put on the spotlight because of lesser deal flow for VC
to invest
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 Business Incubation and
Venture Capital

 Incubator at ITRI
 Vista Incubation Technology Corporation

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Mechanism to encourage innovation and foster new ventures
- by CEPD, Taiwan

Technology
IPR R &D Incubator Company Law
Protection Project Service • Stock option
network
• Warrant

Ideas / Start Expansion Mezzanine

R &D ups IPO
SBIR
Trade Mkt Capital
VC
for non-IPO Mkt
Government Fund stocks

SMEA_Incuabtion
Source: Council for Economic Planning and Development, Taiwan
 Vista’s Model
-- a case of focused incubator
Incubation starts with creating ideas.
• to create technology and market roadmaps in the Internet
and communications areas
• to develop ideas and initiate projects according to these
roadmaps by attracting entrepreneurs to start up new ventures
• to catalyze innovative ideas and provide a driving force to
transform business potential into realized value
• to provide vision and one-stop services to start-up companies
to accelerate progress and increase success rate.

Regardless of location, all incubatees that fit into Vista's roadmap will enjoy
key business and technology synergies, forming a network of strongly
competitive companies.

Vista usually makes significant investment in order to take a

leading role guiding tenant companies. 4 incubatees reported in
2000, and 10 to 12 incubatees estimated till end of 2001.
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 Vista Incubation Technology Corporation
--- The affiliate organization

This model is a closed system to other VC funds at least in the very

beginning . SMEA_Incuabtion
 ITRI’s Model
— A case of multi-faced incubator
• Start with recruiting candidates or discussing with applicants
• Cover wider technology range than most other incubators and any
focused incubators
• Co-develop technology and business development plan with tenants
• Provide All-in-one and state-of- the-art services to approved tenant
companies based on ITRI’s strength in R&D, IP, human resources
and excellent industry network
• Stick to in-house incubation
• Retain 5%-10% option right to invest and exercised through a ITRI
wholly own subsidiary investment corporation (ITIC) independently
• ITIC invests around 10 incubatees and disposed one of them,
besides other 26 VCs fund also invest 15 incubatees in total.
• ITRI Incubator help 28 of 65 incubatees to got SBIR subsidy ( a kind
of seed money) from government

SMEA_Incuabtion
 ITRI’s Incubation Model

ITRI

Other VC
ITIC TTSC funds

Openlab /
Incubator

ITIC is a wholly owned subsidiary

and investment arm of ITRI. ITIC
manages an Alpha VC fund, that
targets to invest seed stage or
startup stage cases.

This model is an open system to Other VC funds. ITRI

Incubator welcomes co-investment with allied VC’s.
SMEA_Incuabtion
Venture Fair
— A platform where VCs meet Enterpreneurs
❧ SMEA,ITRI,Mountain Jade Association and ITIC
jointly held Sinotech Venture Fair 2001, which
successfully brought most VCs in Taiwan and top
tenant companies at incubators together

❧ Annual joint exhibition of technology incubators

conducted by SMEA is another big event to combining
VCs and entrepreneurs

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Sinotech Venture Fair 2001 on the scene

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 Comments
❧ Compare with America based VC, local VC funds prefer to invest
cases that are at expansion stage, and tend to brush off seed stage
ones. It leaves much room to improve combining VC and
incubation together to nurture hi-tech entrepreneurs.
❧ Most local VC funds and incubators are located in northern Taiwan.
It may result in easier corporation between them within this area
than that in other part.
❧ Taiwan need to explore some effective way combining VC and
technology incubation, and till now ITRI, Vista and NTU could be
benchmark models ongoing
❧ Venture Fair can be a platform to put VCs and venture companies at
incubators together
❧ Government SBIR (Small Business Innovation Research) Program in a way plays the character of seed
money provider to facilitate hi-tech entrepreneurship

SMEA_Incuabtion
Thank you for Your Attention !

C.J. Chang
SMEA_Incuabtion
Cj@itic.com.tw