Ta Ya Venture Capital's Dual E Strategy Layout - Building the Third Pillar for Steady Group Growth【Business Weekly】

2024/12/05

Ta Ya Venture Capital's Dual E Strategy Layout - Building the Third Pillar for Steady Group Growth

Business Weekly

(From left to right) Ta Ya Venture Capital Executive Partner Chang, Chih-Hung, Ta Ya Venture Capital General Manager Lee, Wen-Bing, Ta Ya Group Chairman Shen Shang-Hung, Ta Ya Venture Capital Deputy General Manager Shen Guan-Ting

       As a benchmark for Taiwan's corporate venture capital, Ta Ya Venture Capital Co., Ltd. has achieved remarkable results in recent years. The venture capital business has become one of the important pillars of Ta Ya Group's development, standing alongside the cable core business and energy business as the three major operational axes.

       Ta Ya Group Chairman Shen Shang-Hung stated that Ta Ya has evolved from early focus on cable manufacturing to now developing "Double E" - Energy and Emerging Opportunity, and further incorporating ESG sustainability concepts into venture capital strategy.

Patience and Risk-Taking Allow Ta Ya Venture Capital to Achieve Rich Returns

       "Venture capital requires patience and the courage to imagine." Shen Shang-Hung emphasized. Successful venture capital cannot only look at risks but must focus on potential opportunities. In investment strategy, Ta Ya Venture Capital has actively positioned in emerging industries such as biotechnology and healthcare, AI, and semiconductors in recent years. Shen Shang-Hung pointed out that when evaluating investment targets, three main aspects are considered: what problem does the enterprise solve, and how great is the economic value of the solution? Second is that the market scale must be global; third is whether the team possesses unique technical capabilities and solutions.

       Taking BORA PHARMACEUTICALS CO., LTD, one of Ta Ya Venture Capital's successful cases, as an example - the investment has lasted over ten years since 2013. At that time, Shen Shang-Hung saw that PharmaEngine's focus on CDMO (Contract Development and Manufacturing Organization) was like the role TSMC plays in the semiconductor industry, providing contract manufacturing services for global pharmaceutical R&D companies. This forward-looking vision allowed Ta Ya to achieve rich returns after ten years. This also demonstrates the advantages of corporate venture capital: without fund time limitations, it can invest in longer-term projects and truly accompany enterprise development.

Expanding Fund of Funds Portfolio - Extending Reach to Quality Overseas Investment Targets

       To expand the investment portfolio, Ta Ya Venture Capital has also begun positioning in Fund of Funds (FOF). In the past, about 60% of Ta Ya Venture Capital's investment targets were concentrated in Taiwan, but this has gradually changed in recent years. Ta Ya Venture Capital General Manager Lee, Wen-Bing stated that through FOF strategy, they can not only access investment opportunities in different regions and industries, "This allows us to leverage other funds' professional capabilities and network relationships." They have currently invested in funds in the United States, Japan, and other locations.

       Shen Shang-Hung pointed out that as a corporate venture capital, Ta Ya has the characteristics of an Evergreen Fund, capable of investing in longer-term projects. The company prefers to invest in Early Stage startups, mainly considering that resource allocation and potential return leverage are greater. How to find high-potential deal sources becomes the investment key.

       Looking ahead, Ta Ya Venture Capital will incorporate ESG sustainable development concepts into investment decisions. Shen Shang-Hung stated that future investments will be based on the United Nations Sustainable Development Goals (SDGs), focusing on investment targets with environmental and social benefits.

Shen Shang-Hung stated that Ta Ya has evolved from early focus on cable manufacturing to now developing "Double E" - Energy and Emerging Opportunity, further incorporating ESG sustainability concepts into venture capital strategy.

       「"Venture capital is not just for financial returns; it's a tool for corporate transformation and upgrading." Ta Ya Venture Capital Deputy General Manager Shen Guan-Ting emphasized, "In addition to the cable core business and energy business, venture capital will become the third pillar supporting Ta Ya's future development." They hope to create more development possibilities for the group through venture capital business and build a more reputable venture capital brand that continues to attract quality investment opportunities.

Full article source: : Business Weekly  https://www.businessweekly.com.tw/business/indep/1005057