No Equity, No Fee Accelerator? AppWorks’ Deal Flow Engine

Startup accelerators are everywhere, but few operate like AppWorks. Based in Taiwan with a sizable footprint in Southeast Asia, the firm runs an accelerator that takes zero equity and charges zero fees, a model sustained by its associated VC funds.

Alyssa Chen, Principal of the AppWorks Accelerator, joins BFM to explain how this "founder-first" model acts as the top-of-funnel engine for an ecosystem that has raised $6.6 billion in funding across 650 active startups.

We dive into their strategic pivot for 2026, targeting "outlier" founders in Manufacturing AI, Defense Tech, and Onchain Banking, and how they are building a cross-border corridor linking Taiwan, Malaysia, and Singapore.

We discuss:

• The "Freemium" Model: How AppWorks sustains a fee-free, equity-free accelerator by using it as a high-quality deal flow pipeline for its VC funds.

• Vetting "Outliers": Why a free program still requires a grueling 30-question application and interview process to filter out value-seekers and find true execution-focused founders.

• The 2026 "Request for Startups": Why AppWorks is pivoting to hard tech. Alyssa explains the focus on Manufacturing AI (leveraging Taiwan’s hardware strength), Defense Tech (dual-use commercial applications), and Onchain Banking.

• The Southeast Asia Thesis: Despite the region's "exit bottleneck," Alyssa argues that the ecosystem is maturing, with founders shifting from "growth at all costs" to profitability and cash flow.

• The Taiwan-Malaysia Bridge: How AppWorks is actively linking markets, using Taiwan for R&D and revenue, Singapore for capital and legal structure, and Malaysia for talent and team building.

• Alumni Power: How a network of 2,000+ founders (including 900 CEOs) drives the ecosystem, with 570 active startups helping each other navigate fundraising and expansion.

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