AppWorks Closes $165M Fund IV With a Sharper Focus on Web3 and AI in Asia

The Taiwan-based investor trims fund size, brings in sovereign capital, and doubles down on AI and Web3 amid a regional reset in venture investing.

Taipei-based venture capital firm AppWorks has closed its fourth flagship fund at $165 million, lifting its total assets under management to $386 million. The fund, AppWorks Fund IV, will focus on early-stage startups across Asia, with an emphasis on artificial intelligence, Web3, and the broader digital economy, as venture investors remain cautious amid ongoing market uncertainty.

The final close comes at a time when fundraising has become more difficult for venture firms globally. Rather than pushing for size, AppWorks chose to adjust its ambitions, positioning Fund IV as a more tightly scoped vehicle aimed at disciplined deployment and selective bets in what many investors see as a reset phase for venture capital.

A Fund Shaped by Market Reality

AppWorks began raising Fund IV in late 2022, initially targeting a significantly larger pool of capital. However, the shift in global financial conditions—triggered by rising interest rates and tighter liquidity—forced many venture firms to reassess both fund size and pace of investment.

By closing Fund IV at $165 million, AppWorks signalled a pragmatic response to these conditions. The firm said the revised size allows it to invest with greater conviction at a time when startup valuations are being recalibrated and founders are under pressure to show clearer paths to sustainability.

This approach mirrors a broader trend across Asia, where fund managers are prioritising capital efficiency and portfolio quality over headline fund size.

Sovereign Capital Signals Regional Confidence

One of the most notable aspects of Fund IV is its limited partner base. For the first time, three major pan-Asian sovereign investors participated together in an AppWorks fund: National Development Fund, Jelawang Capital, and Korea Venture Investment Corporation.

The involvement of multiple sovereign investors points to rising interest from public capital in early-stage platforms that operate across borders and maintain close ties to founder communities. Alongside these backers, a mix of corporate and institutional investors—including Wistron, Taiwan Mobile, Fubon Life Insurance, E Ink, and Phison—also committed capital, underscoring AppWorks’ role as a bridge between emerging startups and established enterprises across Asia.

Turning a Founder Community Into an Investment Engine

Since its founding in 2009, AppWorks has focused as much on ecosystem-building as on capital deployment. The firm has built a founder-led network that now includes more than 2,000 entrepreneurs and over 650 active startups across Asia.

Over time, this community has become a proprietary sourcing channel for the firm’s funds. Accelerator cohorts, alumni founders, and venture investments feed into one another, creating what AppWorks describes as a venture “flywheel” that continuously surfaces new opportunities.

This model has also helped the firm expand beyond Taiwan. Around 70% of founders in its recent accelerator batches come from outside the domestic market, reflecting AppWorks’ shift toward a more pan-Asian footprint.

Focus Areas: AI, Web3, and the Next Wave

AppWorks began sharpening its focus on AI and Web3 around 2017, well before both sectors entered the mainstream. Today, its ecosystem includes more than 120 active AI startups and over 140 Web3 projects, ranging from infrastructure and tooling to consumer-facing applications.

Fund IV will continue this focus, while also exploring adjacent areas such as manufacturing AI, defence-related technologies, and on-chain financial systems through upcoming accelerator cohorts. These themes align with broader shifts in Asia, where governments and corporates are increasingly looking for technology that can be applied at scale.

Track Record Still Matters

In today’s more selective investment climate, a firm’s track record carries greater weight. AppWorks has pointed to results from its 2014-era Fund II, which achieved a reported 1.9x distribution to paid-in capital, a level typically associated with top-performing venture funds globally. Its early bets have included companies that later emerged as regional leaders, such as Lalamove, Carousell, ShopBack, Animoca Brands, KKday, and 91APP.

While performance details for more recent funds have not been fully disclosed, these outcomes continue to underpin investor confidence in the firm’s ecosystem-driven approach—particularly as many venture firms struggle to show realised returns.

What This Says About Asia’s Venture Landscape

The closing of AppWorks Fund IV highlights several shifts underway in Asia’s venture market:

• Fund sizes are being right-sized, not maximised
• Sovereign and corporate LPs are favouring regional platforms with founder access
• Early-stage investing is moving toward capital discipline and thematic focus

Rather than chasing global hype cycles, AppWorks appears to be positioning itself as a steady, regionally anchored investor with deep ties to founders and enterprises across Asia.

Looking Ahead

Commenting on the fund close, Jamie Lin, chairman and partner at AppWorks, acknowledged the challenging fundraising environment and thanked investors for their support. He said the firm has already begun deploying capital with the goal of delivering both financial returns and strategic value to its partners.

As Asia’s startup ecosystem enters a more selective phase, AppWorks’ latest fund suggests that scale alone is no longer the primary signal of strength. Instead, access to founders, regional relevance, and the ability to invest through cycles may prove more important in shaping the next generation of technology companies across the continent.

Quick Takeaways

• AppWorks has closed its fourth flagship fund at $165 million, bringing its total capital raised to $386 million.
• Fund IV will focus on early-stage AI and Web3 startups across Asia, alongside opportunities in the broader digital economy.
• The fund is backed by pan-Asian sovereign investors, including National Development Fund, Jelawang Capital, and Korea Venture Investment Corporation, marking their first joint participation.
• Corporate and institutional LPs such as Wistron, Taiwan Mobile, Fubon Life Insurance, Phison, and E Ink also joined the fund.
• AppWorks has built a founder ecosystem of over 2,000 entrepreneurs and 650+ active startups, increasingly sourced from outside Taiwan.
• The firm has been active in Web3 investing, backing startups across infrastructure, payments, and trading tools, as venture capital shifts toward more disciplined deployment.
• Fund IV’s smaller size reflects a broader market reset, with investors prioritising capital efficiency and conviction-driven bets over fund scale.