According to the PitchBook-NVCA joint report, during Q1 2020, US$34.2 billion was invested across 2,298 deals in the U.S. Taiwanese startups are not to be underestimated. According to the GSER 2019 report, Taiwan has 550-750 software startups, and its startup ecosystem is valued at US$2.4 billion. Taiwan has the second-largest AI talent pool in the Asia-Pacific region; on par with Beijing.

The COVID-19 impact was limited in Q1. But the majority of investors surveyed by 500 startups responded that COVID-19 will have a significant impact for the remaining part of the year. Hard and confronting decisions and quick actions are the best defense. To survive and thrive post COVID-19, startups need flexible funding plan. This entails valuation adjustments and avoiding signing contracts that are impractical or unprofitable so as to preempt difficulties in the company's future operations.

Garage+, an incubator and part of Epoch Foundation, invited our firm to host a Term Sheet Workshop on 17 April, where negotiation simulation was conducted with the startups selected for the first round of investments. In the morning, Lihuei Mao (a partner of this law firm), and lawyers Derrick Yang and Christina Hsuan Chiang shared key considerations when negotiating term sheets. In the afternoon, veteran startup investors and the participating start-ups simulated investment negotiations, and our lawyers acted as legal counsel to the startups to secure the best investment terms.

After the full day workshop, the startups are confident that they will succeed in reaching their fundraising milestones. As Taiwan's largest full-service law firm, we strive to always be the most insightful and experienced legal partners of startups worldwide.

Photo by Garage+