Taiwan-based Chunghwa Telecom Group and Pchome Online, a Taiwanese e-commerce group, have launched a new venture capital fund.
The vehicle, CHT-PCH NO.1, has a capital pool of NT$400m ($13.5m); however, the companies are looking to invest more capital in future. The fund will look to support AI, big data, FinTech and intelligent logistics businesses in Taiwan, especially e-commerce and digital life technology startups.
Alongside capital, both companies will provide each startup with access to their platform resources, services and content.
PChome chairman Hung-Tze Jan said, “CHT-PCH NO.1 will combine the significant capital and resources of two industries, telecommunications and e-commerce, to nurture Taiwanese startups. We believe that new businesses need more than capital to succeed.
“That’s why we have chosen to give the selected startups access to PChome’s open data and website traffic of 10 million members. These additional resources will broaden the startups’ experimental field and allow them to refine products and technology that resonate with consumers and businesses alike.”
CHT-PCH NO.1 will commission investment research and evaluation through venture management consultancy company Keystone Innovation Venture Capital to help find the best opportunities.
The partners are currently complying with the relevant laws and regulations, but are expecting to establish the fund and seek investments in Q2.
Chunghwa Telecom chairman and CEO Yu Cheng said, “With Taiwan’s startups offering creativity, innovative service, and fresh technology, and our partnership with PChome offering resources based in Taiwan and facing international markets such as wider Asia, we will advance the vision of making Taiwan a digital economy engine and innovative industry leader.”
Investments into Asia’s FinTech sector saw a substantial decline in 2017, compared to 2016, according to data by FinTech Global. The region saw a drop of $4.5bn across the year, and is currently in a two-quarter drop in investments.
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