Startups have different resource requirements at different stages of development in facing the external market environment or internal institutionalized management. The different types of accelerators stationed in the Startup Terrace Linkou provide coaching and consulting services for the different needs of startups, showing the diversity and prosperity of Taiwan's startup ecosystem.
Starting a business is like running a marathon. You need to adjust your physical fitness and speed at different stages to complete the race successfully. Once a startup embarks on the road of entrepreneurship, in addition to the ability to innovate, it also needs to have long-term management and financial management capabilities. Especially when the enterprise is moving towards scale-up development. Whether the management capability is in place will be crucial for success in scale-up development.
Scale-Up and Internationalization: Two Challenges for Startups in Taiwan
Since its establishment 50 years ago, PwC Taiwan has accompanied many companies to grow gradually from startups to large international enterprises. It has in-depth observations on the challenges, bottlenecks and management capabilities that companies may encounter at different stages, and has the support of PwC's global resource network. These two are exactly the current issues faced by startups in Taiwan: scale-up and internationalization development.
In order to assist the development of startups, PwC Taiwan established the "PwC's Scale-up Entrepreneurship Growth Accelerator" with Aplus Management Consulting Co. in 2019 and stationed in the Startup Terrace Linkou at the invitation of the Small and Medium Enterprise and Startup Administration, Ministry of Economic Affairs.
Double the Consultants: Internally Strengthening Management Systems, while Connecting with External Funding
There are many incubation accelerators in Taiwan, and there are also many large-scale enterprises that directly set up accelerators. Shi-Jun Huang, the Chief Accountant of PwC Taiwan Innovation and Entrepreneurship Services, pointed out that there are two major needs for startups to scale up: internal adjustment of corporate management and external fundraising.
From the 2018-2019 survey of Taiwan's startup ecosystem, it can be found that the core teams of Taiwan startups are mostly based on technology R&D, and financial management capabilities are often lacking in many startups. When enterprises are working toward scale-up development and responding to market competition, the lack of management will become an obstacle. PwC Taiwan is a world-renowned professional management consulting agency. With accounting and corporate management as its core professional capabilities, it can help startups find management problems through guidance and consulting, strengthening their fundamental capabilities.
If the management capability of startup is internal power, then the linking of outside funds and industrial resources is external power. There is no doubt about the importance of fundraising for the development of startups. Aplus Management Consulting Co. who jointly operate the accelerator with PwC Taiwan have many years of experience in the investment industry for evaluation, project selection and investment. It can provide professional consultation and guidance on startup fundraising strategies, feasibility of business model, operational planning, fundraising briefings, etc. from the perspective of investors, helping startups prepare operating plans, fundraising briefs, financial information and other documents before formal fundraising, and effectively communicate with investors to make fundraising successfully.
Sub-Title: Focusing Innovation on Potential Industries; Accelerated Scaling for High-Quality Startups
PwC Taiwan has an international resource network and is also a professional management consulting agency with many years of service experience in various industries. It has been working in Taiwan for half a century and has accumulated a considerable number of medium and large enterprise customers, which is helpful to assist startups in linking to the industry and developing business cooperation as well as international resources. Shi-Jun Huang said that the selection of startups for guidance by PwC Taiwan's Scale-up Entrepreneurship Growth Accelerator is not limited to certain industries, but startups with high R&D and technology orientation are preferred.
In addition to the 10 outstanding startups selected as the first group to enter the accelerator last year, this year, PwC Taiwan will continue to invite potential startups to join PwC's Scale-up, such as "OSENSE" who uses AI and computer animation to create full-sensing technology; "LumiSTAR Biotechnology" who specializes in drug clinical research and precision medicine; "ICE Technology" who offers AI image recognition solution services; "New Garden" who provides a one-stop cloud AIoT solution; "Actura" who integrates educational robots and is committed to becoming the most trusted provider for STEAM education solutions.
Shi-Jun Huang pointed out that the main challenge for startups before reaching scaling up is business management capability rather than the fundamental capability for entrepreneurship. Therefore, each startup needs different guidance, and a single set of standardized guiding approach cannot be applied. As with all startups, only tailor-made guidance can effectively help startups break through obstacles and pursue growth. In view of the rapid competition in the business environment, the entrepreneurial growth accelerator does not adopt regular annual enrollment, but a rolling enrollment that welcomes new startups to apply for review at any time. In addition, PwC also welcomes accelerators, innovation institutions, and government programs in the ecosystem to collaborate and then recommend startup teams.
The guidance provided by the PwC's Scale-up Entrepreneurship Growth Accelerator covers the exclusive counseling plan, dual consultants, startup courses, PwC medium and large enterprise network, investor match-making, international resources, etc. Moreover, the Accelerator also conduct in-depth counseling in the aspects of corporate fundamental capability adjustment and fundraising, hoping to strengthen the management system of startups internally and link startups to funds and industrial resources externally over the guidance period of 3-6 months.
Partnering with Startups to Promote Cooperation and Integration
Shi-Jun Huang pointed out that Taiwan has many excellent startups and innovative talents, and the policy as well as resources in the ecosystem are abundant. At this time, Taiwan’s industries are facing the challenge of transformation and upgrading and need to seek digital innovation. For this reason, startups have a good chance of success, and their future is promising.
Facing the future development of startups and the ecosystem, Shi-Jun Huang believes that the development of the startup ecosystem revolves around the communication and interaction between startups, the government, investors, markets, and innovation incubation centers. More links within the ecosystem are needed, allowing different resource providers not only to give full play to their own roles, but also become close partners to jointly assist the development of startups.
"The Startup Terrace Linkou is led by the government to gather guiding energy from all areas. In the future, PwC Taiwan hopes to contribute more of our resources to jointly promote the scale-up and internationalization development of startups through more cooperation or exchange with those who are concerned about the development of startups." Shi-Jun Huang said.
Figure 1：Director and CEO of PwC Taiwan, Jian-Hong Zhou (center), leader of the PwC Innovation and Entrepreneurship Service Team, and representatives of the accelerator's joint operating partner Aplus Management Consulting Co., and startups first selected to join the accelerator.
Figure 2：Shi-Jun Huang (left), accountant in charge of the PwC Innovation and Entrepreneurship Service Team. PwC Taiwan has connected many ecosystem partners, such as accelerators, incubation institutions, industry unions and associations, venture capitalists, medium and large enterprises, and government departments to provide resources for startups.