Taiwan has seen in recent years a hot entrepreneurial scene developing and growing. Parallel to that, the Government kick-started a discussion with the aim of promoting reforms to push the scene in a positive direction. It is within this context that the authorities started considering digital investing as a measure for helping SMEs and entrepreneurs to access finance and stimulate investments from the public.
The drafted rules include the following:
- Online platforms designed to allow the public to buy stakes in small firms are to be operated by local broker-dealers with a paid-up capital of NT$50 million (US$1.61 million) or more.
- Only those firms with a capital of less than NT$30 million (US$ 979,000) will be allowed to access online portals for raising capital, thus limiting this source of finance to small companies.
- The maximum amount that issuers will be able to raise is set at NT$15 million (US$ 490,000).
- Individual investors can invest up to NT$50,000 (US$ 1,630) in a single offer.
Although these rules are still to be evaluated by the Government and yet to be approved. If passed, it will go in the direction of allowing anyone in Taiwan to invest in small local companies.
Taiwan would be the second in Asia to adopt specific regulations for online investing, after Malaysia, and can count on a small but flourishing reward crowdfunding sector which is contributing to create awareness on online mechanisms of funding.
Su, A. (2015). Taiwan to become seventh nation to help crowdfunding. Taipei Times
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.