Korea Startup Index 2017 3
HIGHLIGHTS
Greetings,
I am honored and thrilled to be publishing the Korea Startup Index 2017, the fourth
publication in the series. Our innovative technology companies need far more opportunities
to enter the global market, and these opportunities can be created only when the members
of Korea’s startup ecosystem work together.
Since its founding in 2013, the Born2Global Centre has worked diligently to foster innovative
technology companies that can represent South Korea on the world stage and lead the global
startup ecosystem. Going forward, we aim to continue our efforts under this vision.
To help realize this goal, we have selected and compiled key information regarding startups in
this year’s Korea Startup Index, including the current state of the Korean startup ecosystem,
startup success stories, and crucial factors involved in entering the global market. In doing
so, we analyzed ICT companies and investment trends both in Korea and overseas and
examined the startup ecosystems and support policies of major countries around the world.
It is our hope that this publication will provide readers with useful and meaningful information
and serve as an important reference for efforts to improve the environment for startups in
Korea.
Lastly, I would like to applaud all those who have been quietly working hard behind the
scenes to contribute to the development of the Korean startup ecosystem.
Thank you, and we wish you all the best.
Jong-kap Kim
Chief Executive Director, K-ICT Born2Global Centre
Remarks on the Publication of the Korea Startup Index 2017
www.born2global.comwww.facebook.com/born2globalwww.linkedin.com/company/born2global
Introduction
▶ An Era in Need of Disruption 1Introduction
Korea Startup Index 2017 9
Foreword
Foreword
An Era in Need of Disruption
In the last three to four years, the term “unicorn” has become common in the financial market. In the
business world, unicorns are unlisted venture-backed startups valued at over USD 1 billion. Originally
referring to an imaginary creature in Western mythology, a “unicorn” is an appropriate metaphor for the rarity
of unlisted ventures valued at over USD 1 billion.
Since the term was coined by Aileen Lee, a venture capital investor, in 2013, a staggering number of
unicorns have emerged across the global market, making them much less rare than the term “unicorn”
would suggest. According to TechCrunch, there were 223 unicorn startups as of the end of March 2017.
About 100 of them, or nearly half, are based in the United States, most notably: Uber, a ridesharing
company; Snapchat, a mobile messenger developer; Airbnb, a lodging sharing company; and WeWork, a
workspace sharing company. In China, there are over 50 unicorns, including the ridesharing company Didi
Chuxing and smart device manufacturer Xiaomi. Compared to these two countries, the list of unicorns
in South Korea is short to say the least, with only the e-commerce company Coupang and the mobile
business platform Yello Mobile.
These two companies achieved unicorn status in 2014, meaning that there have been no new Korean
unicorns in the last three years. Around the world, however, unicorns continue to emerge, especially in the
United States, China, and European countries. According to PwC, a global auditing service firm, five new
unicorns were created in the United States in the third quarter of 2017, representing a decrease from the 10
that were created in the second quarter of 2017, which puts the total number of unicorn startups created in
the United States in 2017 at 20. Worldwide, over 60 new unicorns have emerged since 2016.
Upon closer examination of unicorn startups, one common characteristic emerges: regardless of their
expertise, whether manufacturing, development, distribution, or content creation, they disrupted the existing
order and created a new market. Only those startups that challenge the existing industrial structure and market
order and try something new are able to become unicorns. Becoming a unicorn, however, does not necessarily
guarantee success. There are several unicorn startups that have vanished, giving rise to the term “unicorpse.”
However, the continuous emergence of unicorn startups has a huge implication for the industrial ecosystem,
as it means that more and more people are disrupting the market order on a regular basis by challenging
the old systems and striving to forge new industries. And some of them are succeeding. These successes
present new challenges and create an environment where shaking up the status quo and challenging the
existing order is natural. Pioneering a new path rather than settling for the status quo has now become the
norm. This means that successive emergence of incredibly successful startups, referred to as “unicorns,” is
reinvigorating society at large.
Considering these characteristics of unicorn startups, we can see why none have emerged in South Korea
for such a long time. Simply put, there have been relatively few attempts to shake up the market, change
traditional practices, oppose the existing order, or bring greater convenience and rationality to people’s lives.
As long as so few attempts are made to disrupt the existing order, there will be no chance of a new unicorn
emerging in South Korea.
Airbnb was able to become a unicorn because it found a new way to do business in the hospitality industry
Pioneering a new path
rather than settling for the
status quo has now become
the norm. This means that
successive emergence
of incredibly successful
startups, referred to as
“unicorns,” is reinvigorating
society at large.
10 Foreword
and offered customers more convenience. At the time, hotels and motel franchises were struggling to meet
the demand for affordable accommodations that give customers opportunities to experience and enjoy
various aspects of the local culture. Based on a novel idea, Airbnb managed to transform people around the
world into suppliers capable of giving travelers access to local experiences. Despite the many challenges
it faced, Airbnb contributed to the growth of the hospitality industry by shifting the focus of travel toward
culture. Paradoxically, disrupting the market ended up improving it.
The first unicorn startup that emerged in South Korea’s mobile industry after 2010 is the mobile messenger
developer Kakao. Kakao was able to become a unicorn because it shook up a mobile communication market
that had long been reliant on text messages. Telecommunication firms had firmly adopted text-messaging
services, which charged customers several Korean won per text, and customers continued using the
services despite the inconveniences involved because there were no better alternatives. Kakao sought to
challenge this status quo by offering customers a new way to communicate. This was not the first attempt
of this kind, but Kakao managed to do it better than anyone else, leading it to become a “decacorn,” a
company valued at over USD 10 billion.
We should be concerned about the relative lack of unicorns in South Korea over the past several years. The
fact that there have been so few companies willing to take aim at the existing order means that the market
is losing its vitality. The industries that were leading innovation in the country around 2010, including the
mobile industry, have now entered the maturation period, giving many causes for concern.
There are various reasons behind the lack of new unicorns in South Korea, including regulation issues and Korea’
s unique conglomerate-centered industrial structure. However, striving to try something new regardless of the
circumstances, seeking to make the impossible possible, and looking for a new, game-changing idea are what
entrepreneurship is about. And there is no denying that entrepreneurship is what gives life to unicorns.
Fortunately, while preparing this report on the startup ecosystems and environments around the globe in
2017, we found reasons to be hopeful. Although investment weakened and caution became the prevalent
attitude among startups in the global market, the investment atmosphere in South Korea was markedly
different. Funding for startups continued its steady rise, and a greater number of firms started and invested
in new businesses. There is still concern surrounding the tech bubble, but the interest in and enthusiasm
surrounding startups and investment continue to run high.
Another common characteristic shared by successful unicorns is that they all targeted the global market.
Not all of them started out with plans to promptly advance into the global market; they just happened to
create products and services that met the needs and demands of people around the world. That is how they
became unicorns, and their accomplishments have been inspiring numerous young people to create new
startups. To maintain this enthusiasm for startups in South Korea and enable startups to achieve their goals
and overhaul existing markets and the industrial order, we need more global startups and overseas success
stories to serve as a source of inspiration. We believe that the Korea Startup Index 2017 can serve as one
such source of motivation, helping usher in a new era of startups.
Although investment
weakened and caution
became the prevalent attitude
among startups in the global
market, the investment
atmosphere in South Korea
was markedly different.
Funding for startups
continued its steady rise, and
a greater number of firms
started and invested in new
businesses.
Born2GlobalAnnualReport
www.born2global.comwww.facebook.com/born2globalwww.linkedin.com/company/born2global
Born2Global Annual Report
▶ Born2Global Annual Report 2
Korea Startup Index 2017 15
Born2Global Annual ReportSTATISTICS
8,073cases ofconsultingservices
Providedsupport for
2,271companies
Offered legalcounseling for
the establishment of
58 overseassubsidiaries
Supportedthe attraction of
KRW237.99 billion
in investment
394overseas businesscontracts andpartnerships
554overseaspatent
applications
2013.9-2017.12
Born2GlobalAnnual Report
16 Born2Global Annual Report Korea Startup Index 2017 17
Born2Global Annual ReportMajor Accomplishments and Activities of Members in 2017
Attracted KRW 2 billion in investment from POSCO Capital and Mirae Asset Venture
Investment
Attracted investment from Balancers and Meddiction Corp.
Attracted KRW 1.5 billion in investment from 500 Startups, K-Run Ventures, and others
Attracted KRW 3 billion in investment from Japan’s Miroku Jyoho Service (MJS)
Attracted investment from BonAngels
Attracted joint investment of KRW 4 billion from Kakao Investment and Kakao Brain
Attracted KRW 2 billion in investment from Stonebridge Capital
Attracted additional investment from DSC Investment, ES Investor, and Daesung Venture
Capital
Attracted KRW 150 million in investment from KB Investment
Attracted seed investment from the Accredited Investors Angel Club (A.I. Angel Club) and an
American angel investor
Attracted KRW 24 billion from Naver, for a cumulative total investment of KRW 75.5 billion
Attracted investment from Japan’s KDDI Corporation
Attracted KRW 1 billion in investment from KEB Hana Bank
Secured funding support of KRW 1.5 billion over three years from the Korea Credit Guarantee
Fund (KODIT)
Attracted investment from D2 Startup Factory
Attracted KRW 2.3 billion in investment from Altos Ventures
Attracted KRW 4.5 billion in Series B investment
Attracted KRW 1.5 billion in investment from Korea Investment Partners
Succeeded in attracting USD 11 million in Series C investment
Attracted KRW 2.5 billion from Stonebridge Capital and Colopl Next
Secured funding support of KRW 1.5 billion over three years from the Korea Credit Guarantee
Fund (KODIT)
Succeeded in attracting KRW 6 billion in investment, the largest investment ever made in a
Korean healthcare startup, realizing a cumulative total of KRW 16.2 billion
Attracted KRW 2 billion in Series A investment
Succeeded in attracting Series B investment from Stonebridge Capital and HB Investment
Attracted USD 16 million in Series A investment from Shasta Ventures in the United States
Attracted KRW 1.5 billion from Korea Investment Partners
BuzzArt
Knowledge-seek Co.
Five Jack
Hankook NFC
Contents First
Luxrobo
Odd Concepts
Riiid!
Factory
Sodacrew
Mesh Korea
4D Replay
MINDs Lab
SecuLetter
Deepixel
Ventures
ZOYI Corporation
Edenlux
MyMusicTaste
Odd Concepts
Mglish
Ybrain
MOIN, Inc.
Uberple
SendBird
Innopresso
anked second place in the Startup Pitching Competition
Ranked third place in the Startup Pitching Competition
Ranked first place in the Korean Startup IR Competition at the 2017 Korea-China Startup
Cooperation Forum
Named an “Outstanding Startup” at the 4YFN Awards, hosted by Spain’s MWC
Won the Gold Winner Award at ISPO Award 2017, held in Munich, Germany
Won the National Consumer-Driven Brand Award in 2017
Neofect
Innomdle Lab
Jocoos
PiQuant
Salted Venture
Petbox
Selected for the 48th NAACP Image Awards for its smart wearable diet belt
Won the Prime Minister’s Award at the 24th Korea Multimedia Technology Awards
Won in the “Music Creation & Education” category at Midem
Won the Hey Startups! Global Demoday, hosted by Seoul Metropolitan Government
Was runner-up in the Hey Startups! Global Demoday, hosted by Seoul Metropolitan
Government
Won in the “Caregiver Quality of Life” category at the AARP Innovation Champion Awards,
held in the United States
Won the Minister of Trade, Industry and Energy Award at Korea Consumer Goods Showcase
2017
Won the Grand Prize at the 3rd Future Growth Engine Challenge Demo Day
Won the Venture of the Year Award at the MK Biohealth Startup Festival
Won the Grand Prize at Maekyung Fintech Awards 2017
Won the Seyfert Global Award at the Seyfert FinTech Awards
Won the Seyfert Grand Prize at the Seyfert FinTech Awards
Won the preliminary round of the Create@Alibaba Cloud Startup Contest in Korea
Was a finalist in the preliminary round of the Create@Alibaba Cloud Startup Contest in Korea
Received a special mention in the preliminary round of the Create@Alibaba Cloud Startup
Contest in Korea
Received a special mention in the preliminary round of the Create@Alibaba Cloud Startup
Contest in Korea
Won in the “General Software” category at the July-August New Software Product Awards
Won the “President of the Korea Health Industry Development Institute Grand Prize” at
Challenge! K-Startup 2017
Selected as one of the Top 4 Grants4Apps Accelerators
Won the Minister of SMEs and Startups Award at the 17th Korea Digital Management
Innovation Awards
Won at Slush Singapore Pitching Competition 2017
Entered the finals of TechCrunch Disrupt Battlefield 2017
Listed as one of the 2017 Red Herring Asia Top 100 startups
Selected as the “Best and Most Innovative SME” at ITU Telecom World 2017
Won the Innovative VR Company of the Year Award at VR Awards 2017
Ranked fourth in the final round of the Create@Alibaba Cloud Startup Contest
Won in the “Best New Product” category at the 2017 Korea Electronic Show (KES) Awards
Won at the 7th Young Entrepreneurs Competition
Received an honorable mention at the K-Global Startup Competition
Winner in the “Wearable” category at the 2017 4IR (Fourth Industrial Revolution) Awards
Winner in the “Healthcare” category at the 3rd Korea Good Company Awards
Won the Grand Prize in the “Executive Leadership” category at the 2017 Good Software
Company to Work For Awards
Won the Global Demoday at Seoul Startup Expo
Won the Korea Demoday Grand Prize at Seoul Startup Expo
Won the Korea Demoday Excellence Award at the Seoul Startup Expo
Named an Innovation Honoree at the CES 2018 Innovation Awards
Named an Innovation Honoree at the CES 2018 Innovation Awards
DoubleH
KNOWCK
COOLJAMM Company
Luxrobo
Bagel Labs
Neofect
WELT
Dr. Pik
Lunit Inc.
Hankook NFC
Sodacrew
Mesh Korea
Lunit Inc.
Visual Camp
MINDs Lab
Bagel Labs
InfiniFlux
Luxrobo
Sky Labs
Mesh Korea
BLH Aqua Technology
Looxid Labs
Mesh Korea
MINDs Lab
G’Audio Lab
Lunit Inc.
Sonictier
Collabee Inc.
Archidraw
DoubleH
Ybrain
Younglimwon Soft Lab
PiQuant
STORE Camera
Eyedea, Inc.
Investment Attracted
Awards
18 Born2Global Annual Report Korea Startup Index 2017 19
Born2Global Annual Report
Signed an MOU with Eediom, Inc. on technology cooperation for the development
of robo-advisors
Signed a contract with ZPlay to release Monster Super League in China
Signed an MOU with Korea’s iMBC and Japan’s TFC
Formed a data partnership with the Canadian financial group Thomson Reuters
Established a delivery service integration partnership with AngelSoft
Formed a strategic partnership with Vista, a cinema ticket solution company
Jointly promoted financial transaction service project with DB Inc.
Supplied big data database management system (DBMS) to Macrogen
Formed a partnership with ND Soft for the personalized article recommendation
function
Signed an exclusive domestic distribution contract with Cudo Communication and UniPoint
Signed an ICT solution supply contract with Malaysia
Signed a strategic MOU with DIOCIAN
Signed an MOU with Japan’s Taiyo and i-Service
Formed a campaign partnership with Pepsi
Signed a kiosk-related MOU with Topfield
Provided Seoul City with a mobile payment service based on optical character
recognition technology
Mounted its solution on Trendalyze’s platform
Signed a contract with KFC to supply the delivery service “VROONG”
Signed an MOU with GIO Coaching regarding an AI career/occupation consulting
service
Signed a contract to become an official Korean partner of China’s Ctrip Gourmet List
Collaborated with THiRA-UTECH on the development of a smart factory solution
Entered the Russian fintech market with a simple mobile payment service
Popularized insurtech industry with INBYU
Signed a financial consulting MOU with Hana Financial Investment
Signed a business-academia cooperation MOU with Seoul Occupational Training
College regarding 3D printing
Signed an MOU regarding a pilot project for a virtual reality shopping mall
Formed a business partnership with CJ ONE and launched the lockscreen service
“Wonder Lock”
Signed a strategic partnership agreement with Now N Tech regarding the
development of eco-friendly energy
Dominated the small kiosk market with Topfield
Cooperated with Penta Security on smart factory security
Engaged in strategic cooperation with CJ Olive Networks for cloud service
Formed a strategic partnership with 11st
Worked with LG Uplus to expand the “IoT Smart Garbage Collection Management
System” to local governments nationwide
Signed a contract with Klook to supply food and tourism products
Expanded same-day delivery service with Plating
Signed a business cooperation contract with BMT to create smart factories based on
power data analysis technology
Signed a business contract with TiTANplatform to provide highly secure IoT
Jointly developed an AI job consultant chatbot service with Smart Social
Cooperated with Yuhan Kimberly to apply IoT service to baby products
Became an official partner of Billboard Korea; grants the Best K-Pop Award every
month
Signed a contract to integrate delivery service with OKPOS
Cooperated with TiTANplatform to ensure stereo audio content protection
Signed a business contract with NICE Information Service regarding AI-big data
convergence
Formed a partnership with Gony Bros to apply stereo sound to UHD web drama
series
Signed a contract with KB Financial Group to provide OmniCheck service
Signed an MOU with Vietnam’s SACO and DIGITALWORLD
Signed an agreement with the United States-based BISim regarding the
development of a virtual military training system
Signed an MOU with two companies, one of which was Ozone United, regarding
expansion into the Middle Eastern market
Signed an MOU with World Vision on the “Vision Store” campaign
BSMIT
SMARTSTUDY
SAI
Uberple
Mesh Korea
i-Aurora
Paycock
InfiniFlux
Dable
InfiniFlux
KNOWCK
COOLJAMM Company
Kiwontech
Seerslab
i-Aurora
Paycock
InfiniFlux
Mesh Korea
Dreamsquare
Red Table
InfiniFlux
Paycock
Hankook NFC
EUCAST
A Team Ventures
NextAeon
Buzzvil
Geo-Line
i-Aurora
Ulala LAB
ASD Korea
Buzzvil
Ecube Labs
Red Table
Mesh Korea
Ulala LAB
Norma Inc.
MINDs Lab
Monit
Taggle
Mesh Korea
Sonictier
Uberple
Sonictier
FlyHigh
Kiwontech
Innosimulation
Kiwontech
Mesh Korea
Contracts Signed
Named a Best of Innovations Honoree at the CES 2018 Innovation Awards
Won the Minister of SMEs and Startups Award at the 5th Beloved Korean Enterprise
Government Awards
Named one of the 2017 Red Herring Global Top 100 startups
Won the SKT Telecom Award at the 17th Mobile Technology Awards
Was runner-up at TechCrunch Shanghai 2017
Won the Grand Prize in the “Family App of the Year” category, as selected by Google Play
Won the Minister of Science and ICT Award at the ICT Funding Project Performance
Presentation
Ranked among Top 7 Intelligence APIs at AWS Marketplace
Won the 2nd Lee Minhwa Healthcare Startup Award
Named in the Top 10 startups at Startupbootcamp Energy Australia
Won the Minister of Science and ICT Award at the 1st 4IR Awards
Winner in the “Intelligence and Information” category at the 2017 Korea ICT Awards
Won the “President of the Korea Institute of Startup & Entrepreneurship Development
Award” at the 2017 TIPS Awards
Won the Grand Prize in the “Security Solution” category at the 3rd 2017 Korea Enterprise
Awards
Won the Grand Prize in the “ICT Innovation Overseas Expansion” category at the 2017 Korea
ICT Awards
Won the Minister of Employment and Labor Award for Merit at 2017 Job Creation Awards
Neofect
TwoEyes Tech, Inc.
Looxid Labs
Mesh Korea
MOIN, Inc.
Norma Inc.
SMARTSTUDY
Mesh Korea
Twinword
WELT
Strix
Riiid!
MINDs Lab
Dable
Kiwontech
4DReplay
Mesh Korea
20 Born2Global Annual Report Korea Startup Index 2017 21
Born2Global Annual ReportTimeline
September 2013 - December 2017
201701
03
04
05
06
02January 6: Participated in CES 2017
February 9: Held meetup with tenant companies
February 13: Signed MOU with Nest and 8point Capital
February 15: Go-to-market Russia Road Show
February 22: Signed MOU with KB Financial Group
February 22: Signed MOU with Kwangwoon University
February 24: Recruited first group of members
February 27: Received delegation of Afghan e-government officials
March 6: Participated in MWC 2017
March 16: Received representatives of Hong Kong Cyberport
March 24: Published the 2016 Korea Startup Index
April 5: Held meetup with tenant companies
April 10: Received representatives of Bayer
April 12: Held first members’ kick-off
April 13: Held channel partner companies’ kick-off
April 19: Held second conference for startups
April 24: Go-to-market Europe Road Show
April 27: Held marketing seminar
May 11: Held meetup with Bayer
May 11: French Startup Ecosystem Seminar
May 11: Participated in Go-to-market Japan Road Show
May 16: Held seminar on laws
May 19: Go-to-market Europe Road Show
May 29: Participated in UK Mega Tech Mission
June 6: Demo Day in Russia
June 12: Recruited second group of members
Formed a partnership with KT GiGA Genie TV and launched English service for
Pinkfong
Signed an MOU with the United States-based CarForce regarding expansion into
the American market
Signed an MOU with China’s Haiping [KH1]Group, Russia’s Izodmed[KH2], and
Medtronic
Signed a content partnership contract with ASTRO Holdings All Asia Networks, the
largest media group in Malaysia
Signed an MOU with the New Product Research Center at Tsinghua University,
China, to provide eye-tracking technology
Signed a three-way MOU with Alibaba Cloud and Kevins to expand the cloud-based
smart factory market in China
Signed contracts with Kkday (Taiwan), Voyagin (Japan), and BeMyGuest (Singapore)
to supply Korean food and tourism products
SMARTSTUDY
BlueSignal Inc.
L-meca
SMARTSTUDY
Visual Camp
Ulala LAB
Red Table
Participated in MWC 2017 (March 6, 2017)
Participated in Demo Day in Russia (June 6, 2017)
22 Born2Global Annual Report Korea Startup Index 2017 23
Born2Global Annual Report
October 17: Meetup with tenant companies
October 18: Offered a training session on the necessary national certificates and certificates for different industries
October 23: Received the president of the IDB
October 25: Domestic road show in cooperation with LG Uplus
October 29: Go-to-market Taiwan Road Show
November 1: Offered a training session on customer development for startups planning to enter the American market
November 8: Offered a training session on business strategies based on the acquisition of Chinese intellectual property
rights
November 15: Offered a practical training session for startups on legal matters
November 16: Participated in the SV (US) Demo Day
November 21: FinDay in cooperation with the Korea Credit Guarantee Fund and Shinhan Bank
November 22: Offered a training session on accounting and tax management in the United States, with a focus on
crowdfunding
November 24: Meetup with Groupe Renault
November 28: Open seminar for employees of startups
November 28: Go-to-market Europe Road Show
November 29: Offered a training session on strategies for entering the ASEAN market and filing patent applications
November 30: Participated in SLUSH 2017
November 30: MOU with Huaxia Group, Shinhan Bank, and the Korea-China Culture Association
November 30: Open seminar for startups on labor issues
December 4: Product-Market Fit (PMF) program
December 8: Go-to-market Middle East Road Show
December 8: Go-to-market Japan Road Show
December 11: Beijing (China) Demo Day
December 13: PR Seminar
December 15: Meetup with startup founders in northern Europe
December 19: B2G Alumni Night
June 13: Hosted “Startups Meet Grownups” in cooperation with the Korean-German
Chamber of Commerce and Industry (AHK Korea) and D.Camp
June 21: First domestic Demo Day
June 30: Attended MWCS 2017
July 4: B2G-KB Financial Group Roadshow in Korea
July 4: Meetup with tenant companies
July 5: Meetup with DreamIt Ventures
July 5: Patent seminar
July 12: Second Members’ kick-off
July 12: Received Prime Minister Lee Nak-yeon at the B2G Centre
August 1: Received delegation of the UK Department for Digital, Culture, Media & Sport
August 2: Received representatives of Shorooq Investment
August 3: Hosted the Start Tel Aviv Competition in cooperation with Yozma Group and the Embassy of Israel
August 21: Received representatives of the Qatar Business Incubation Center (QBIC)
August 30: Meetup with MIT Bootcamp
September 1: Go-to-market Europe Road Show
September 1: Participated in IFA 2017
September 13: Participated in GMV 2017
September 13: Offered a training session on strategies for securing intellectual property rights for startups planning to
enter the American market
September 14: Participated in Softwave 2017
September 21: Offered a training session on Chinese market trends and marketing strategies
September 27: Offered a training session on founding firms in China and drafting related contracts
September 28: K-Global Connect Pangyo Festival
September 28: Second domestic Demo Day
September 28: MOU signed with Groupe Renault.
October 12: Offered a training session on accounting and tax matters related to attracting overseas investment
06 10
08
09
12
10
0711
2017 2017
Representatives from the QBIC (Qatar Business Incubation Center) visited the B2G Centre on August 21, 2017
K-Global Connect Pangyo Festival on September 28, 2017
MOU signed with Groupe Renault on September 28, 2017
President of the Inter-American Development Bank (IDB) visited the B2G Centre on October 23, 2017
B2G-LG UPlus domestic Road Show on October 25, 2017
Training session on customer development for startups planning to enter the American market on November 1, 2017
PR Seminar on December 13, 2017
B2G Alumni Night on December 19, 2017
24 Born2Global Annual Report Korea Startup Index 2017 25
Born2Global Annual Report
June 21 - Business management strategy training for startups
June 28 - Corporate valuation training for startups
July 5 - MOU signed with Samjong KPMG
July 10 - Third recruitment of members
July 12 - Seminar on trends in China
July 12 - Meetup with tenant companies
July 19 - Patent training for startups
July 30 - Demo Day in Los Angeles, U.S.
August 9 - Training on how to establish subsidiaries in China and the tax system for startups
August 10 - MOU signed with Bayer Korea
August 10 - Recruitment of trainees for the 6th B2G Academy
August 18 - Legal counseling for startups looking to expand into the U.S.
August 24 - Training on crowdfunding and online marketing
August 29 - Training on design intellectual property rights for startups
August 30 - Entrance ceremony for the 6th B2G Academy
September 4 - Fourth recruitment of member startups
September 21 - Go-to-market U.S. Road Show
October 10 - Go-to-market Southeast Asia Road Show
October 13 - Completion ceremony for the 6th B2G Academy
October 14 - Recruitment of trainees for the 7th B2G Academy
October 21 - Launch of visa/international labor consulting support program
October 25 - Training on the latest technology trends in the U.S. market
October 25 - Entrance ceremony for the 7th B2G Academy
October 26 - K-Global Connect Pangyo Festival
October 26 - Second domestic Demo Day
October 26 - Case study on U.S. market culture and marketing
October 27 - Training on startup marketing strategy based on case studies and analyses of competitors
February 3 - IT MEGA VISION (co-hosted)
February 4 - Seminar on the expansion of startups into the U.S.
February 16 - Publication of the Korean Startup Index 2015
March 8 - First recruitment of member startups
March 9 - Seminar with European investors
March 20 - MIT Global Entrepreneurship Bootcamp (co-hosted)
March 22 - Opening ceremony for the Startup Campus
March 24 - Meetup with tenant companies
March 31 - Kick-off ceremony for KSEF (Korean Startup Ecosystem Forum)
April 4 - Seminar with Chinese experts
April 7 - Seminar with the Southeast Asian accelerator MaGIC
April 20 - Members’ kick-off
May 2 - Business strategy training for startups
May 3 - Meetup with tenant companies
May 4 - Strategy training for startups looking to expand into Europe (UK)
May 8 - Second recruitment of member startups
May 12 - MOU signed with the City of Chengdu
May 12 - Training on U.S. law and accounting for startups
May 16 - Training on Chinese law for startups
May 17 - Seminar with the U.S.-based accelerator DreamIT
May 18 - Meetup with tenant companies
May 25 - First domestic Demo Day
May 27 - MOU signed with Yozma Group
May 31 - Go-to-market Europe Road Show
June 1 - MOU signed with Idinvest
June 3 - Demo Day in Paris, France
June 14 - Launch of B2G-AMCHAM startup mentoring program, held by leading global companies in Korea
1차 국내 데모데이 2016.5.25.
입주사 Meetup 2016.5.18.
B2G-MIT Bootcamp 2016.3.24.
02
03
04
05
06
201606
07
09
10
08
2016
B2G-AMCHAM 주한 글로벌 리딩기업 스타트업 멘토링 프로그램 킥오프 2016.6.14.
LA 데모데이 2016.7.30.
태국 외교부 입주사 방문 2016.9.2.
26 Born2Global Annual Report Korea Startup Index 2017 27
Born2Global Annual Report
January 21 - Seoul Road Show
January 28 - Busan Road Show
January 29 - Jeonbuk Road Show
January 30 - Seoul Road Show
February 3 - Demo Day in Los Angeles, U.S.
February 5 - First recruitment of member startups
February 4 - Demo Day in Orange County, U.S.
February 11 - B2G Business Link Day with Google
March 17 - First members’ kick-off
March 18 - “B2G with Google” service demonstration
March 18 - Launch of CP (Channel Partners)
March 23 - Info Day with Netherlands’ startup Bootcamp
March 25 - Demo Day in Brussels, Belgium
March 27 - Demo Day in Lille, France
March 31 - Recruitment of trainees for the 4th B2G Academy
April 1 - Change of corporate name to “K-ICT Born2Global Centre”
April 15 - Entrance ceremony for the 4th B2G Academy
April 17 - Launch of Investment Community
April 27 - Startup public relations seminar
April 28 - European ecosystem seminar with Techstars London
April 30 - Startup public relations seminar
May 7 - First domestic Demo Day
May 18 - Pitch training for startups
May 22 - B2G Day - Skill-up
May 22 - Pitch training for startups
June 1 - Second recruitment of member startups
June 5 - Completion ceremony for the 4th B2G Academy
January 15 - Daegu Road Show
January 20 - MOU signed with POSTECH’s Research and Business Development Foundation
October 28 - Athletic competition
November 1 - Training on manners in international business
November 2 - Training on data-based marketing and sales performance optimization
November 3 - Demo Day in Silicon Valley, the U.S.
November 3 - Training on the U.S. legal system and expansion of startups into the U.S. market
November 8 - Training on strategy for expanding into Silicon Valley and related case studies
November 9 - Training on product planning
November 10 - Training on contract writing based on case studies
November 15 - Training on sales meeting preparation and strategy
November 16 - Training on design and marketing strategy
November 16 - League of Accelerators 2016 (co-hosted)
November 17 - Training on how to conduct sales meetings
November 22 - Training on business development strategies and methods
November 23 - Training on mobile marketing strategy
November 24 - Training on investment attraction strategy
November 29 - Go-to-market Europe Road Show
November 29 - Training and practice sessions on business meeting preparation
November 30 - Training on search engine optimization and keyword research practices
December 1 - Completion ceremony for the 7th B2G Academy
December 1 - Mini domestic Demo Day
December 9 - Recruitment of tenant companies
December 15 - B2G Alumni Night
December 21 - MOU signed with Tsinghua University and Tsinghua Holdings
December 22 - Demo Day in Beijing, China
1011
12
01
2016
2015
01
02
03
04
05
06
2015
유럽 데모데이 2015.3.25.
B2G with Google 서비스 시연회 2015.3.18.
LA(미국) 데모데이 2015.2.3.
28 Born2Global Annual Report Korea Startup Index 2017 29
Born2Global Annual Report
January 10 - MOU signed with Dankook University’s Research and Business Development Foundation
January 29 - MOU signed with Korea Software Global Research
February 6 - Recruitment of trainees for the 2nd B2G Academy
February 14 - MOU signed with the Busan-Ulsan Business Incubator Center
February 21 - First domestic Demo Day
February 28 - Startup growth strategy seminar with an M&A expert from Silicon Valley
March 4 - Entrance ceremony for the 2nd B2G Academy
March 6 - Training on business strategy establishment and business plan preparation for startups
March 7 - Danny’s Day
March 11 - Case studies of excellent business plans
March 13 - Training on the importance of teamwork through case studies
March 14 - MOU signed with the Korea Regional SW Industry Promotion Council
March 18 - Training on startup positioning strategy
March 19 - Second domestic Demo Day
March 20 - Training on startup value proposition
October 28 - Completion ceremony for the 5th B2G Academy
November 5 - Second domestic Demo Day
November 16 - Demo Day in Silicon Valley, U.S.
December 1 - PR training for startups
December 1 - Pitch training for startups
December 14 - Demo Day in Shanghai, China
December 14 - Recruitment of tenant companies, investment companies, and accelerators
December 17 - B2G Alumni Night
December 17 - B2G with Startup Sauna - Link Day
December 18 - Business fair with a delegation from Xi?ny?ng, China
December 19 - K-Global Start-up 300 certificate awards ceremony
June 8 - Pitch training for startups
June 22 - Demo Day in London, UK
June 25 - B2G with Cisco GCoE - Link Day
July 13 - Second members’ kick-off
July 21 - Pitch training for startups
July 23 - K-Global Connect Pangyo
July 31 - Recruitment of trainees for the 5th B2G Academy
August 20 - Demo Day in Beijing, China
August 25 - Pitch training
August 26 - Entrance ceremony for the 5th B2G Academy
August 26 - Entrepreneurship training
August 27 - Second domestic Demo Day
September 2 - Training and tips on how to prepare a business plan from an investment analyst
September 9 - Training on how to prepare and utilize Business Model Canvas
September 9 - Training on branding techniques and public relations strategies
September 10 - Pitch training for startups
September 15 - Demo Day in Tokyo, Japan
September 16 - Training on venture investment
September 23 - Training on UX strategy and big data analysis
October 6 - B2G Day in the U.S.
October 7 - Training on domestic and international laws important to startups
October 14 - Training on basic patent issues for startups
October 14 - Training on basic tax and accounting procedures for startups
October 14 - B2G with Indiegogo - Link Day
October 14 - Pitch training for startups
October 21 - Training on pitching strategy and practice
October 21 - Demo Day in New York, U.S.
06
07
08
09
10
20151011
12
01
02
03
2015
2014
동경(일본) 데모데이 2015.9.15.
K-Global Connect Pangyo 2015.7.23.
K-Global Startup 300 인증서 수여 2015.12.29.
30 Born2Global Annual Report Korea Startup Index 2017 31
Born2Global Annual Report
September 3 - Opening of Global Startup Centre
October 16 - MOU signed with the Incheon IT Promotion Agency (IITPA)
October 28 - Entrance ceremony for the 1st B2G Academy
October 28 - Training on venture businesses and entrepreneurship
October 30 - Global IT mega-trend training
November 1 - Training on business model design and business feasibility analysis
November 4 - Training on team building for startups
November 6 - Success stories from startup founders
September 30 - Demo Day in Tokyo, Japan
October 7 - Seminar with Golden Gate Ventures
October 8 - Marketing Meetup
October 8 - Patent Meetup
October 8 - Recruitment of participants for the go-to-market local marketing support program
October 13 - Training on procedures for signing investment contracts and startup valuations
October 15 - Accounting Meetup
October 17 - Training on key provisions of investment contracts
October 22 - B2G Dialogue with Qualcomm Ventures
October 24 - Reception for the Korea-UK network
November 4 - Demo Day in Silicon Valley, U.S.
November 5 - Patent strategy seminar for startups
November 6 - Completion ceremony for the 3rd B2G Academy
November 12 - B2G Dialogue with Songhyun Investment
November 17 - MOU signed with London & Partners
November 20 - B2G Global Investors Forum in Seoul
December 11 - “See ICT Venture, Create the Future” festival
December 22 - Conference for startups
March 25 - Training on how to establish a company and related laws
March 27 - Training on practical accounting for startups
March 28 - MOU signed with the Korea University Council of Research & Industry Cooperation
April 1 - Case study on intellectual property rights disputes
April 3 - Training on corporate fundraising and management
April 4 - MOU signed with Kyungbok University
April 8 - Training on manners in international business
April 10 - Training on presentation technology and pitching strategy
April 15 - Training on digital marketing strategy
April 17 - Training on technical improvement and cooperation with partners
April 18 - Global startup consulting road show
April 23 - Third domestic Demo Day
April 24 - Completion ceremony for the 2nd B2G Academy
April 29 - MOU signed with OpenTrade
May 28 - MOU signed with Hanshin University’s Industry-Academic Cooperation Foundation
May 30 - Seminar on the startup community
June 30 - Training on B2G investment
July 1 - B2G Business Link Day with Orange Labs
July 14 - Demo Day in Singapore
July 16 - B2G Dialogue with Magellan Technology Investment
July 18 - MOU signed with Mirae Holdings and Korea Science & Technology Holdings
August 6 - B2G Dialogue with Mega Investment
August 21 - B2G Business Link Day with KT
August 21 - Recruitment of trainees for the 3rd B2G Academy
August 22 - B2G Dialogue with East Gate Partners
September 18 - Entrance ceremony for the 3rd B2G Academy
September 23 - B2G Business Link Day with Content N싱가포르 데모데이 2014.7.14.
03
04
05
0607
08
09
20140910
11
12
0910
11
2014
2013B2G Global Investors Forum In Seoul 2014.11.20.
32 Born2Global Annual Report Korea Startup Index 2017 33
Born2Global Annual Report
November 8 - Training on intellectual property rights
November 11 - Training on making elevator pitches
November 13 - Training on SWOT analysis
November 15 - Training on profit and risk analysis
November 18 - Training on startup ecosystems in Korea, Japan, and China
November 20 - Training on legal reviews in connection with MOUs, IOIs, and INDAs
November 22 - Training on basic accounting involved in establishing a company
November 25 - Training on presentation strategy
November 26 - MOU signed with the Busan Economic Promotion Agency
November 27 - Training on global technology trends
November 29 - Training on corporate fund raising and management
December 2 - Training on sales and negotiation techniques
December 4 - Presentation workshop
December 5 - MOU signed with Inha University’s Industry-Academic Cooperation Foundation
December 6 - Training on B2B and B2C marketing
December 6 - MOU signed with Hannam University’s Startup Support Team
December 9 - Training on startup promotion and marketing strategies
December 11 - Training on building sales channels using private and public sector resources
December 13 - Case studies on venture capital investment
December 16 - Networking with domestic venture capital and angel investors
December 18 - MOU signed with the Korean Business Incubation Association (KOBIA)
December 19 - Completion ceremony for the 1st B2G Academy
11
12
2013
Born2Global Centre | A one-stop platform for entering the global market
The Born2Global Centre provides a one-stop platform through which innovative technology firms can find
the help they need to successfully enter the global market. From professional consulting services that have
helped discover more than 100 outstanding companies annually to global business support and rental space for
companies, the Born2Global Centre provides a broad range of support and services.
Support Program
Eligibility B2G Members *100 B2G member companies
Support for entering the target overseas market and expanding customer base
PMF(Product Market Fit) Program
Internal consulting (legal matters, patents, accounting, and marketing)/
External consulting(Consulting partners and experts in Korea and overseas)
Go-To-Market Consulting
Customized business meetings and investor relations
Go-To-Market Road Show
Invite Global Experts to hold one-on-one mentoring sessions, seminars and meetups
Go-To-Market Practice
Provision of support for startups entering global markets
Go-To-Market Global Demo Day
Provision of space at Pangyo Startup Campus (if needed)
Provision of space for the development and growth of startups
B2G Services
B2G internal consulting(legal matters, patents, accounting, and marketing)
Go-To-Market Consulting
Demand-linked business meetings and investor relations
Go-To-Market Road Show
Invite Global Experts to hold one-on-one mentoring sessions, seminars and meetups
Go-To-Market Practice
Non-members *Innovative technology companies
34 Born2Global Annual Report Korea Startup Index 2017 35
Born2Global Annual ReportMembership Services | Programs Offered
Concerning various areas in which innovative technology firms often encounter difficulties, such as legal matters,
patents, accounting, marketing, PR, and visual content creation, the Born2Global Centre’s consultants first provide
consulting services, and then its Channel Partners (CP) provide follow-up consulting.
Programs Offered
Visual contentexperts
Attorneys Patent attorneys
Visa experts
PR experts
HR experts
Accountants
Marketing experts
Go-To-Market Consulting Service | One-on-one consulting services tailored to startups entering the global market |
Legal consulting
Patent consulting
Accounting consulting
•Founding of local firms overseas (United States, China, Japan, etc.)•Legal consultation on the operation of firms overseas (corporate governance)
Support for overseas patent applications (including the international phase of the PCT) to obtain patent rights in the overseas countries in which startups are planning to enter
• Due diligence and audits, special purpose audits, design of internal accounting systems, corporate diagnoses, and other accounting-related counseling
•�Settlement of local financial statements in overseas markets and other accounting-related counseling
Review of and legal counseling on various contracts related to overseas business activities
Review of infringements of patent rights, design rights, and trademark rights, responses to infringement notices; support for intellectual property lawsuits, etc.
•�Review of international taxes related to overseas investment and other tax-related counseling
•�Review of international taxes and tax advice on corporate listings and mergers & acquisitions
•�Support for local tax reporting and registration procedures for companies operating overseas
•�Assistance addressing local tax issues in overseas countries and other tax-related counseling
Legal counseling that aims to minimize the legal risk of overseas business activities
Prior art research, rights analysis, new IP discovery, IP strategy establishment, licensing strategy consulting, IP valuation, and others
Corporate valuations to attract overseas investment and carry out M&As, and follow-up counseling
Corporate listing and M&A counseling
Review of contracts and legal review and counseling on financing and corporate restructuring
Establishment and operation of overseas subsidiaries
Overseas patent applications
Accounting
Review of overseas business contracts
Intellectual property (IP) risk management
Tax
Legal risk management
IP R&D strategy consulting
Corporate valuation
Others
Investment advice and legal review in relation to corporate
restructuring
Services
Services
Services
Details
Details
Details
We were able to receive personal, one-on-one consultations on the areas in which we’d struggled. The
consultants were all experts in their fields, so we were satisfied with the results.- Studio3E -
36 Born2Global Annual Report Korea Startup Index 2017 37
Born2Global Annual Report
•Basecamp Module•Held at the B2G Centre in Pangyo•Period: one to two weeks
•On-Site Module•Held in the country of the target market•Period: one to two weeks
•Market insights, product development and revision•Period: four weeks (including the company’s own schedule)
Programs Offered
Overseas marketing consulting •Market research, surveys of local users, and testing
•Establishment of market entry strategy, local marketing strategy•Establishment of business model pivot strategy
•�Search engine marketing, social media marketing, viral marketing, market platform marketing •Creative marketing, etc. •Localization of promotional videos, etc.
Global crowdfunding marketing (strategizing, localization, registration, promotion, etc.)
•Discovery of prospective local clients and partners•�Support for business development (contacting customers/partners,
meetings, proposals, and business alliances/contracts)
Market research and strategy establishment
(linked with the PMF program)
Global marketing
Crowdfunding marketing
Business development
Service items Details
PR Services•Counseling on PR strategy and design of management plan •Counseling on development of items and articles for media-based PR •Planning and writing of press releases for articles•Press release and article distribution service (both in Korea and overseas)•Search engine optimization service
•Support in maximizing exposure of articles through interviews•Influencer product review service
•PR workshops, seminars, and office hours•Media Day
PR Service
Editorial pickup service
PR magic strategy
Services Details
Articles are objective and boost credibility. I believe that there’s nothing better than PR services to spread
awareness about companies. We had 10 articles published about us in Japan and over 15 published in
Southeast Asian countries, including Vietnam, Malaysia, and Singapore. They were a big help.- Kiwontech -
It’s difficult to quantify the results of the video content creation service,
but we’d say it was worth about KRW 15 to 20 million. We were very happy with it.
[The experts in charge] were very enthusiastic about organizing the script as well.- Innopresso -
Product-Market Fit (PMF) Program
To help increase the chances for innovative technology companies to successfully advance into the global
market, we offer the Product-Market Fit Program. This program focuses on strategies for entering local
markets, provides opportunities to make direct contact with potential customers in the target market, and
draws on local insights for the purpose of market validation. The program lasts for two to four months.
The task of innovative technology companies is to identify active consumers of initial products in the target market and determine the number of consumers.
The program consists of three parts: Build → Measure (conducted locally) → Learn. This cycle is repeated two or three times.
Designing New Market Program Product Market Fit
38 Born2Global Annual Report Korea Startup Index 2017 39
Born2Global Annual ReportPrograms Offered
It was great because it gave us a good sense of the global market.
Experts from target countries came and gave lectures that were different from those given by
Korean experts. For starters, they had different sense of things.-Eyedea -
Training(as of 2016-2017)
Number of participants
1233
Number of events
23
Seminars and conferences(as of 2016-2017)
Number of participants
1478
Number of events
26
Based on the B2G Centre’s global partner channel, this professional program strengthens the capacity of
companies through hands-on training, seminars, meetups, and conferences with experts invited from
foreign countries and induces the exchange of market information.
Go-To-Market Practice | One-on-one mentoring, seminars, and meetups with invited experts to
help find solutions for overseas expansion |
The Born2Global Centre offers a matching service that helps Korean startups attract foreign investment and
develop their businesses. So far, we have hosted 38 Demo Days in Korea and overseas.
Go-To-Market Demo Day | Supporting overseas business development and investment attraction |
Domestic Demo Days
Number of startup participants
324
Number of events
19
(cumulative total)
Overseas Demo Days(cumulative total)
Number of startup participants
166
Number of events
19
We have had several follow-up projects since
participating in a Demo Day. Communication with
the person in charge was easy, and we were very
well taken care of.- FlyHigh -
2014 | Singapore in July, Tokyo in September, and Silicon Valley in
November
2015 | Los Angeles and Orange County in February, Brussels and
Lille in March
London in June, Beijing in August, Tokyo in September,
New York in October, Silicon Valley in November,
and Shanghai in December
2016 | Paris in June, Los Angeles in August, Silicon Valley in October,
and Beijing in December
2017 | June - Moscow (Russia), November - Silicon Valley (United States),
December -Shanghai (China)
40 Born2Global Annual Report Korea Startup Index 2017 41
Born2Global Annual ReportPrograms Offered
Through demand-linked partnership programs (investor matching, customized business meetings, etc.)
with global companies, investors, accelerators, and other important local channels, the Born2Global Centre
supports startups in their efforts to establish references and increase revenue.
Go-To-Market Road Show | Support for establishing references and increasing sales |
(cumulative total)
Domestic road shows
Number of startup participants
12
Number of events
2
(cumulative total)
Overseas road shows
Number of startup participants
49
Number of events
13
2016 | Finland in May, Washington and Tokyo in September,
Singapore and Beijing in October, and Finland in November
2017 | May - Tokyo (Japan) and the Netherlands; October - Taiwan;
December - Qatar, Kuwait, Tokyo (Japan), and Finland
The Born2Global Centre provides support for office space and other facilities (conference rooms, meeting
rooms, lounges, office furniture, etc.) to help innovative technology companies establish stable foundations
for their businesses.
K-Global Startup Hub | Providing facilities, such as office spaces and co-working spaces, and related programs |
Thanks to the Born2Global Centre’s expansive infrastructure, we were able to gain insights
into the local market. Being introduced to global companies in the target countries was
particularly valuable for us.- Studio3E -
Location | Building 3, Startup Campus, 20, Pangyo-ro 289beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do, S. Korea
Size | Total space (lented space) : 8,167㎡(87,909ft2)
Available facilities |
• Conference rooms (3) : spaces for large classrooms or seminars equipped with multimedia facilities, capable
of accommodating up to 100 people
• Video conference room (1) : space equipped with three-way simultaneous video conferencing solutions and
equipment, capable of accommodating up to 12 people
• Meeting rooms (7) : spaces for small conferences equipped with multimedia equipment, capable of
accommodating four to eight people
• Offices (50) : office space dedicated to startups, capable of accommodating four to 20 people
*Wi-Fi, printers, copiers, and coffee machines are available in all areas free of charge.
The location and accessibility are great, and affordability is one of the biggest advantages.
It’s hard to find a place like this. - JLK Inspection -
Startup Investment Trends
www.born2global.comwww.facebook.com/born2globalwww.linkedin.com/company/born2global
Startup Investment Trends
▶ Startup Investment Trends in Korea3
Korea Startup Index 2017 47
Startup Investment Trends in KoreaVenture Capital Investment
New venture capital investment in startups has reached record highs for two consecutive years.
According to the Korea Venture Capital Association (KVCA), new venture capital investment in 2016
recorded KRW 2.1503 trillion, exceeding the record high of KRW 2.0858 trillion in 2015. This implies
that domestic venture capital firms are maintaining their steady investment in startups despite the
doubt in the global market regarding the growth potential of startups.
This trend continued into 2017 as well. As of the end of October 2017, new domestic venture capital
investment recorded KRW 1.8375 trillion, showing a 9.8-percent increase compared to the same
period in 2016 (KRW 1.6729 trillion), according to the KVCA. This increase is remarkable, even when
compared to the record high in 2016, and new venture capital investment in 2017 is expected to break
that record as well.
2000
25,000
20,000
15,000
10,000
5,000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Unit: KRW 100 million
*source Korea Venture Capital Association (KVCA)
Amount of new investment
2013 2014 2015 20162017.10
20,2
11
8,91
3
6,17
7
6,30
6
6,04
4
7,57
3
7,33
3 9,91
7
7,24
7
8,67
1
10,9
10
12,6
08
12,3
33
13,8
45 16,3
93
20,8
58
21,5
03
18,3
75
New venture capital investment records record high for two consecutive years
Startup Investment Trends in Korea
Venture Capital Investment
Angel Investment
EXIT
Crowdfunding
Major Venture Capital Firms in Korea
Amount of New VC Investment in Korea by Year
The number of firms receiving investment remained that same as in the previous year. The KVCA reported
that 972 firms had received new investment from venture capital investors as of the end of October 2017,
which is the same number as of the same time in 2016. This shows that venture capital investors invested
more in the same number of startups as they had by the same time in the previous year, meaning that each
startup received a larger amount of investment, on average.
48 Startup Investment Trends Korea Startup Index 2017 49
Startup Investment Trends in Korea
After reaching an all-time low of KRW 60.8 billion, new investment in the distribution sector bounced
back to show an increasing trend for three consecutive years, starting with KRW 109.2 billion in 2013 and
growing to KRW 204.6 billion in 2014 and KRW 304.3 billion in 2015. New investment stalled somewhat in
2016 but rebounded once again in 2017, exceeding KRW 300 billion as of the end of October.
Investment in the ICT service sector has been rising steadily for the past seven years. After exceeding KRW
400 billion in 2015, new annual investment increased slightly in 2016. As of the end of October 2017, the
total amount of new investment has already surpassed the annual investment amount of the entire previous
year, showing an increase of 10 percent or more overall.
After several years of stagnation, investment in ICT (information and communication technology)
manufacturing firms bounced back in 2017. Investment in the ICT service sector increased as well. In
particular, investment in the distribution and service sectors, which had plunged rapidly in 2016, increased
dramatically. Overall, the concentration of investment in bioindustry decreased, while investment in the
service sector increased.
According to the KVCA, new investment in the distribution and service sectors (KRW 321.1 billion)
exceeded the total investment made in these sectors in the previous year (KRW 249.4 billion) by 28.7
percent. By the end of October 2017, investment in the ICT service sector recorded KRW 407.6 billion,
also surpassing the investment made in the previous year (KRW 406.2 billion).
The year 2016 was all about bioindustry, with new investment in this sector leading the investment market. New
investment in the bioindustry and healthcare sectors rose dramatically over a four-year period, increasing from
KRW 146.3 billion in 2013 to KRW 292.8 billion in 2014, KRW 317 billion in 2015, and KRW 468.6 billion in 2016.
However, this positive trend seems to have subsided in 2017, with new investment in the bioindustry and
healthcare sectors recording KRW 283 billion as of the end of October. Some have suggested that the
decrease in investment in the bioindustry sector was the result of Hanmi Pharmaceutical’s export contract
deal falling through at the end of 2016, when it was discovered that the company had failed to report the
occurrence of a fatal side effect in a patient during the clinical trials of its lung cancer drug Olita. Although
investment in bioindustry has been making gains in the second half of 2017, some have commented that it
is too early to tell what the final result will be.
Investment in the game sector has been decreasing steadily for three consecutive years, since reaching
KRW 176.2 billion in 2014. As of the end of October 2017, new investment made by venture capital
investors was a mere KRW 86.4 billion. A number of games developed in Korea have succeeded in
the global market, some of which were massive hits, yet most of them were developed by large, well-
established game companies. As the mobile game market has begun to mature, investors have likely
started focusing on making large-scale investments, thus reducing the appeal of small game companies,
which struggle to survive in the market.
Investment in the IT, Distribution, and Service Sectors Rises
Concentration of investment in the bioindustry sector declines
Unit: KRW 100 millionGame Distribution
2010 2011 2012 2013 2014 2015 2017. 102016
4500
4000
3500
3000
2500
2000
1500
1000
500
0
*source Korea Venture Capital Association (KVCA)
954
804
1,270
892608
918
1,553
2,046
4,019 4,062
2,494
4,026
3,0433,211
1,913
1,092
Unit: KRW 100 millionGameBioindustry
2010 2011 2012 2013 2014 2015 2017. 102016
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
*source Korea Venture Capital Association (KVCA)
1,017
933840
9451,126
1,052
1,463
2,9283,170
4,686
2,830
1,6831,427
864
1,762
940
Rise in Investment in the Distribution and Service SectorsDecreased Investment in the Biotech Sector
50 Startup Investment Trends Korea Startup Index 2017 51
Startup Investment Trends in Korea
The proportion of investment in early-stage companies under three years old, often referred to as startups,
has increased steadily since 2009. Considering that the proportion of investment in early-stage companies
had been quite low prior to that time, the increasing trend is likely related to changes in industries, such as
the dramatic increase in the number of new companies in the mobile sector following the development of
smartphones, which led to increased investment in such firms.
However, the upward trend of the proportion of investment in early-stage companies weakened in 2017.
According to the KVCA, new investment in early-stage companies under three years old accounted for only
32.1 percent of all investment as of the end of October 2017, marking the first time that the proportion of
investment in such companies has decreased on a year-on-year basis since 2009.
As of the end of October 2017, the number and size of venture capital funds, which are investment sources
for venture-backed companies, have risen gradually. This is great news in terms of financial resources, as it
indicates that investment capacity for startups and other venture-backed companies is increasing.
According to the KVCA, the number of venture capital funds in Korea as of the end of October 2017 was
674, representing an 11.9-percent increase from the end of 2016. The number and size of venture capital
funds are currently on an increasing trend. The fund budget (for working capital) recorded KRW 18.3594
trillion as of the end of October 2017, showing a 9.8-percent increase from KRW 16.7205 trillion in 2016
and doubling the KRW 9.2573 trillion recorded in 2012.
dropped to 23.5 percent in 2013. Since then, however, it has been increasing gradually, recovering to 27.9
percent in 2015 and rising further to 28.7 percent in 2016.
This shift in the focus of domestic venture capital investment toward middle- and late-stage companies
is closely related to changes in industries. The IT industry, which was driven by the mobile sector and
attracted large amounts of early investment, has advanced and matured, along with many other industries.
In response, investors are shifting their focus from early-stage companies, which carry relatively higher risk,
to middle- and late-stage companies. Although the proportion of investment in middle-stage companies is
relatively low, the recent upward trend is expected to contribute to the balanced development of industries.
On the other hand, the proportion of investment in companies over seven years old, which has been declining
steadily over the past several years, increased dramatically in 2017. According to the KVCA, investment in
companies over seven years old accounted for 39 percent of all investment as of the end of October 2017,
showing a 4.5 percentage-point increase from the 34.5 percent recorded in the previous year.
The proportion of investment in middle-stage companies (over three years and under seven years old),
which are said to be entering the “valley of death,” has so far failed to break into the 20-percent range.
As of the end of October 2017, investment in middle-stage companies accounted for 28.9 percent of all
investment. In 2010, investment in middle-stage companies recorded KRW 290.4 billion, or 26.6 percent of
all investment, but then fell slightly to 26.2 percent in 2011 and hit a record low for the past decade when it
Upward trend of proportion of investment in early-stage companies weakens
Number of VC Funds Increases Rapidly
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017.10
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
*source Korea Venture Capital Association (KVCA)
63.5%
39.0%
32.1%
26.0%30.3%
36.8%
40.1%
28.5%
29.2% 29.9%
26.7%
30.7%
31.3%
36.8%
32.1%29.5%
Unit: %
2011 2012 2013 2014 2015 2016 2017.10
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
*source Korea Venture Capital Association (KVCA)
26.2% 25.5%23.5%
24.8%
27.9% 28.7% 28.9%
Unit: %
Proportion of Investment in Early-Stage Companies Under Three Years Old Proportion of VC Investment in Middle-Stage Companies
52 Startup Investment Trends Korea Startup Index 2017 53
Startup Investment Trends in Korea
The aggregate budget of early-stage funds has been higher than KRW 2 trillion every year since 2014. The
budget of new funds, which stood at KRW 2.6195 trillion in 2014, increased to KRW 2.6346 trillion in 2015
and KRW 3.3508 trillion in 2016. As of the end of October 2017, the budget was calculated to be KRW 2.4484
trillion.
This steady increase in the number of operating funds means that investment resources and capacity are
increasing. It also means that people are making continuous efforts to find new investment opportunities.
Investment is also affected by the characteristics of new funds and the success of certain funds.
800
700
600
500
400
300
200
100
02012
*source Korea Venture Capital Association (KVCA)
2013 2014 2015 2016 2017.10
381402
447
529
605674
Unit: number of investment funds
5,493
3,409
1,109
3,031
463
820 971 897492
346 326 296557 566
834
1,3991,747
0
1,000
2,000
3,000
4,000
5,000
6,000
Unit: KRW 100 million
20102009200820072006200520042003200220012000 2011 2012 2013 2014 2015 2016
*source KVAN(한국엔젤투자협회)
Increasing Number of VC Funds
Recovery of Angel Investment
Angel Investment
Angel investment reached KRW 550 billion in 2000, when the so-called “startup bubble” was at its peak.
After that, it was in decline for a decade. When the startup bubble burst, angel investment decreased
dramatically. After that, there were occasional rebounds, but they were relatively restrained. The impact
of the investments lost with the collapse of the bubble remained a nightmare in the minds of many,
preventing sharp increases in angel investment. However, since dropping to KRW 29.6 billion in 2011, angel
investment has been increasing gradually. In 2012, it reached KRW 55.7 billion, double the amount of the
previous year, after which it rose to exceed KRW 100 billion in 2015, marking a new high since 2003. In
2016, angel investment recorded KRW 174.7 billion (direct private investment), surpassing the amount of
investment in the previous year by over 20 percent.
Private investment funds have been increasing steadily as well. According to the Ministry of SMEs and
Startups and Korea Business Angels Association, the number of private investment funds multiplied from
two in 2011 to 29 in 2013 and 55 in 2014, before rising dramatically to 211 in 2016. As of the end of June
2017, there were 273 private investment funds. The reason that such funds have gained so much traction is
that, rather than letting people collect investment information and make decisions independently, they allow
individuals to share the burden of risk and increase their opportunities.
Recovery of Angel Investment
54 Startup Investment Trends Korea Startup Index 2017 55
Startup Investment Trends in Korea
*source Ministry of SMEs and Startups
2011 2012 2013 2014 20162015 2017.6
213
29
55
89
211
273
0
50
100
150
200
250
300
Unit: number of private investment funds
*source Ministry of SMEs and Startups
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
200220012000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017.6
28,8
75
12,0
02
4,71
7
3,96
4
2,24
6
2,10
7
2,72
7
2,17
0
1,74
2
1,24
3
748
619 2,
610
7,06
3
9,64
8
12,5
60
13,7
41
4,87
0
Unit: persons
Unit: 1 person
2013 2014 2015 2016
*source Korea Venture Business Association
334224 224301
133207113
488
997
707439
355
2,054
894
685
3510
500
1000
1500
2000
2500
Less than KRW 15 million KRW 15 to 49.9 million KRW 50 to 100 million More than KRW 100 million
Rapid Increase in Private Investment Funds Number of Angel Investors Increases
Angel Investors by Investment Size
In 2016, the number of angel investors finally exceeded 10,000 for the first time in 15 years. According
to the Ministry of SMEs and Startups, the number of angel investors registered at the Angel Investment
Support Center was 12,560, showing an increase of 3,000 from the previous year. This trend seems to
have continued in 2017. As of the end of June 2017, a total of 13,741 angel investors were registered at the
support center, setting a record high for the last 17 years.
One of the effects of this increase in the number of angel investors is an increase in the number of small
investors. Moreover, the proportion of investments in early-stage companies has increased as well.
According to the Ministry of SMEs and Startups, the number of investments in early-stage companies under
three years old was 2,277 in 2016, showing an increase of 178 percent from the 819 investments made in
the previous year. Among angel investments, the percentage of investments in early-stage companies also
showed a significant increase, rising from 30.1 percent in 2015 to 49.1 percent in 2016.
During the same period, the total amount of investment made in early-stage companies under three
years old increased by only 30 percent, from KRW 49.9 billion to 65.1 billion, because the percentage of
small investors had increased as well. In summary, as the number of investments and number of recipient
companies increased dramatically, more and more small investors began making investments, focusing
particularly on early-stage companies.
In 2016, 3,984 angel investors made investments in venture-backed companies. Of these, more than half, or
2,054, were small investors who invested less than KRW 15 million. The proportion of such small angel investors
is increasing every year. According to the Ministry of SMEs and Startups, small investors who invested less
than KRW 15 million accounted for only 38 percent of all angel investors in 2013, which is when records on the
number of such small investors began to be kept. The proportion of small investors was the largest in terms of
the proportion of investors in each investment category. However, the proportion of the investors who invested
more than KRW 15 million was much greater than the proportion of investors who invested less. The proportion
of small investors increased to 40 percent in 2015 and rose further to 51.5 percent in 2016.
Angel investors increase by 30 percent, along with increase in small investors
56 Startup Investment Trends Korea Startup Index 2017 57
Startup Investment Trends in KoreaExit (Investment Repayment)
In the startup ecosystems of the United States, European countries, and other developed nations, initial
public offering (IPO) is the most effective means by which investors and startup founders can recoup some
of their investments and reinvest them to promote the growth of the company. In Korea, however, it is still
quite rare, and viewed as unusual, for venture-backed companies to go public.
According to the Korea Venture Business Association and Korea Venture Capital Association, only 34
venture-backed companies (companies in which venture capital firms are invested) were listed on KOSDAQ
(excluding SPACs, etc.) in 2017. Considering that there were 33 venture-backed companies listed on
KOSDAQ in 2016, this represents only a small increase. The investment recovery market, however, is still
not at the level is should be.
Aside from IPO, global venture capital firms regularly use merger and acquisition (M&A) as the preferred
means of earning returns on their investments. However, this method has not been effective in Korea. As
a result, domestic venture capital firms and angel investors generally recover their capital through over-
the-counter market sales, which involves a high level of uncertainty. According to the KVCA and Ministry of
SMEs and Startups, over-the-counter sales and redemption accounted for the largest proportion, at 45.1
percent, among the various ways of recovering venture capital investment in Korea. This was followed by
IPO (31.6 percent), projects (18.2 percent), and M&As (2.3 percent). One positive characteristic to note
is that the proportion of IPOs has been increasing somewhat compared to previous years, driven by the
revitalization of the IPO market and the government’s active policy efforts to facilitate listing on the KOSDAQ
or the third market.
Every year, the numbers of venture-backed companies, venture investments, angel investors, and investors
making investments in venture-backed companies have been increasing. However, it is rare for investors to
successfully recover their capital, even partially, and reinvest it. This means that a huge amount of capital is
injected into the startup ecosystem every year without any adequate exit for such capital. This is the current
state of venture capital investment in Korea. IPO is the most effective means of recovering capital and the
most important component of the startup ecosystem, yet in Korea it is only symbolic. In the last 20 years of
the history of venture-backed companies in Korea, the IPO ratio (proportion of venture-backed companies
that complete IPOs) has never exceeded 10 percent, giving rise to the vicious cycle of: delayed listing →
insufficient investment returns → reduced investments → sluggish growth → decrease in attempts to list.
Rarity of Venture-Backed Companies that Have Launched IPOs
Lack of M&As and dependence on over-the-counter sales
Unit: number of venture-backed companies that have launched IPOs
134
105
58
37
61
43 52
29 29 34 35
17 23 26
46
33 34
150
100
50
020022001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017.10
*source Korea Venture Business Association
2016
2015
2014
2013
2012
2011
2010
*source Korea Venture Capital Association
14.2%
18.1%
17.8%
15.7%
20.3%
23.6%
31.6%
23.7%
18.5%
22.4%
23.5%
20.9%
13.6%
18.2%
56.2%
61.3%
56.0%
49.8%
56.8%
41.3%
45.1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
단위 : %M&AIPO Project Over-the-counter sales and redemption Others
Number of Venture-backed Companies that Completed IPOs by Year
Percentage of the Ways to Recover VC Investment in Korea
58 Startup Investment Trends Korea Startup Index 2017 59
Startup Investment Trends in KoreaCrowdfunding
Since it was first introduced in Korea in 2016, equity crowdfunding has been tried by an average of 20 or
so companies a month. The success rate was below 50 percent in the first year, but rose to 64 percent in
2017. As of the end of June 2017, the average success rate of crowdfunding over the 17 months since its
introduction was 52 percent.
A portmanteau of “crowd” and “funding,” crowdfunding refers to a practice of raising monetary contributions
from unspecified small investors by startup founders and others who require funds through intermediaries
(online small investment brokers) via the Internet. Specifically, equity crowdfunding has been gaining
attention as a type of crowdfunding where backers receive equity shares in the company, differentiating it
from donation-based crowdfunding.
In February 2016, when investment crowdfunding was first introduced in Korea, a total of KRW 120 million
was issued for KRW 120 million in subscriptions. After that, however, issue prices fell far short of offering
prices. In June 2016, only KRW 820 million was issued for KRW 2.28 billion in subscriptions. In 2017,
however, the success rate has increased, and the difference between the issuing and subscription prices
has been narrowing. Over the course of 2016, an average of about 10 crowdfunding campaigns a month
were successful, but that figure increased to 15 a month in 2017, with the success rate climbing from 45.1
percent to 64.3 percent over the same period. In June 2017, the number of successful campaigns a month
exceeded 20 for the first time, with the issue price rising to KRW 3.05 billion, almost double the subscription
price of KRW 1.76 billion.
High rate of success of crowdfunding
*source CrowdNet
8.2
31.9
28.5 29.1
21.5
17.6
7.4
20.8 20.6 21.119.6
30.5
0
5
10
15
20
25
30
35
Unit: KRW 100 millionIssuing price
1(Jan) 2(Feb) 3(Mar) 4(Apr) 5(May) 6(Jun)
Offering price
Crowdfunding Trend by Month in 2017
Another noticeable difference between 2016 and 2017 is that the number of people participating in
crowdfunding has increased dramatically, which triggered an increase in the number of small investors
as well. According to the Financial Services Commission and CrowdNet, 6,823 (or 94 percent) of all
crowdfunding participants were private investors, and half of those, or slightly more than 3,400, were
small investors who invested less than KRW 500,000. The average number of investors per successful
crowdfunding campaign was 60, showing a 42.9percent increase from 2016.
The number of crowdfunding projects each month showed no dramatic increase, with the average
remaining steady at around 20 a month in 2016 and 2017. This means that only certain companies are
engaging in crowdfunding.
Dramatic increase in investors but too few crowdfunding attempts
60 Startup Investment Trends Korea Startup Index 2017 61
Startup Investment Trends in KoreaMajor Venture Capital Firms in Korea
According to the Ministry of SMEs and Startups, Korea Investment Partners made the largest number of
investments in 2016, investing KRW 148.2 billion in 84 companies by the end of the year. As the largest
venture capital firm in Korea, Korea Investment Partners invests more than all other firms nearly every
year. Smilegate Investment came in second, investing KRW 95.9 billion in 40 companies, followed by SBI
Investment, with KRW 87.8 billion in 34 companies.
Korea Investment Partners also made the largest number of investments in early-stage companies (under
three years old). In 2016, the firm invested a total of KRW 43.4 billion in 24 early-stage companies. LB
Investment came in second with KRW 41.6 billion in 15 companies, followed by SBI Investment (KRW 39.6
billion, 11 companies), SoftBank Ventures (KRW 28.1 billion, 13 companies), and K2 Investment Partners
(KRW 24.1 billion, five companies).
The venture capital firm that made the largest number of investments
Top 10 venture capital firms with the best investment performance (as of 2016)
Korea Investment Partners
Smilegate Investment
SBI Investment
Atinum Investment
LB Investment
IMM Investment
KB Investment
SV Investment
KTB Network
InterVest
Venture capital firmRank
1
2
3
4
5
6
7
8
9
10
Subtotal
84
40
34
21
24
20
24
23
41
30
292
Number of firms invested
1,482
959
878
702
681
589
554
542
520
499
7,406
Investment amount (KRW 100 million)
Korea Investment Partners is the largest venture capital firm in
Korea, managing an investment fund worth KRW 1.966 trillion
that was created in 2008. Since its founding in 1986, it has invested a total of KRW 2.4 trillion, of which KRW 1
trillion was invested in the past year alone. Accordingly, it also has the largest number of personnel dedicated
to investment. The company employs 40 experts, 10 of whom are assessment experts with over 10 years
of experience in the field and 18 of whom are assessment experts who majored in science and engineering.
SoftBank Ventures Korea is an investment company that was
established by Japan’s SoftBank Group Corp. Although it is a
foreign holding company, SoftBank Ventures Korea has grown with the Korean venture industry since it
was founded in 2002, during the startup bubble. The company is known for consistently investing in Korean
startups and venture-backed companies and has invested in companies in diverse sectors, including
Internet, technology, venture-backed biotech, medical equipment, and manufacturing companies. As of
the end of 2016, SoftBank Ventures Korea has invested in over 200 startups, of which early-stage startups
account for 45 percent of its total investments. The company cooperates with its parent company, SoftBank,
and actively invests in startups that have either entered or wish to enter the global market. Also, about
30 percent of the company’s total investments are overseas. As of the end of October 2017, SoftBank
Ventures Korea operates a total of 13 funds, two of which were created in 2017.
SoftBank Ventures Korea was an early investor in SundayToz, a South Korean company that created
the amazingly popular mobile game Anipang and ushered in a new era of mobile games. In addition to
SundayToz, the company has made initial investments in Knowre, Cocone, TrueBalance, RSquare, and other
promising Korean venture-backed companies.
Smilegate Investment is a first-generation Korean venture capital
firm that was founded in 1999 as MVP Capital. Originally a game
developer that topped the Chinese market with its online game Crossfire, Smilegate acquired MVP Capital
in 2011 and changed the firm’s name to Smilegate Investment.
Since creating its first investment fund in 2000, Smilegate Investment has gone on to establish 30
investment funds, through which it has invested in more than 200 firms. With more than 30 dedicated
investment experts on its staff, the company invested nearly KRW 100 billion in 2016.
The company is actively investing in Internet and game companies, including Seed Nine, R2Beat, and
Including support personnel, Korea Investment Partners employs over 80 investment-related employees.
The firm has been increasing its investments every year as well. Korea Investment Partners invested KRW
71.5 billion in 30 different companies in 2010; KRW 93.7 billion in 34 companies in 2011; and KRW 100.5 billion
in 41 companies in 2012. In addition, the firm made KRW 120.3 billion in investments in 39 venture-backed
companies in 2013; KRW 131.5 billion in 61 companies in 2014; and KRW 258.4 billion in 81 companies in 2015,
showing significant growth every year.
The company’s major successes include: Osstem Implant (invested KRW 5.2 billion and recovered KRW 37.2
billion), YG Entertainment (invested KRW 7.4 billion and recovered KRW 68.7 billion), Kakao Corp. (invested KRW
5 billion and recovered KRW 81.8 billion), and Bodyfriend (invested KRW 4 billion and recovered KRW 18.5 billion).
Korea Investment Partners
SoftBank Ventures Korea
Smilegate Investment*source Ministry of SMEs and Startups
62 Startup Investment Trends
A large venture capital and private equity firm founded in 1999, IMM
Investment holds a total of KRW 3.1 trillion in 12 venture capital funds and 13
private equity funds, as of the end of October 2017. Its operating capital is a little more than KRW 2 trillion.
Through its venture capital funds, the company invests KRW 353 billion, led by a dedicated team of over 30
investment experts. IMM Investment has made investments in more than 120 promising venture-backed
firms and startups, including IDUS (largest handicraft market in Korea), Coupang, (largest social commerce
site in Korea), StyleShare (now the largest fashion social-media site), True Balance, and Bucketplace.
Devsisters, as well as in distribution and service companies, such as BGF Retail. In 2017, Smilegate
Investment created three new investment funds, including Smilegate Growth Fund No. 1, bring the total
number of funds it currently operates to 21.
IMM Investment
www.born2global.comwww.facebook.com/born2globalwww.linkedin.com/company/born2global
Startup Ecosystem in Korea
▶ Analysis of Korean Startup Ecosystem
▶ Analysis of Korean Startups
▶ Characteristics of Korean Startups4 Startup Ecosystem in Korea
Korea Startup Index 2017 67
Analysis of Korean Startup Ecosystem
Purpose
Participatingorganizations
Period or
Analysis
Content
Design
To conduct an in-depth study of the current status of Korean startup companies, particularly those in Seoul and Gyeonggi Province, where the majority of startups are concentrated; carry out a comparative analysis of Korean and global startups; and examine the characteristics of Korean startups and the competitiveness of Korea’s startup ecosystem.
- Research: Macromill Embrain
- Analysis: Korea Enterprise Institute
21 November to 6 December (approx. three weeks)
SPSS’ statistical analysis package was used to perform frequency analysis, technology analysis, and cross analysis.
1) Company Information
2) Foundation
3) Founder’s Background
4) Talent & Experience
5) Funding & Shares
6) Market Reach & Competency
7) Startup Environment Assessment
Online and offline surveys were conducted of startups located in Seoul and Gyeonggi Province. To increase the confidence level, snowball sampling was kept to a minimum, and the target startups were selected through startup incubators and investment firms.- A total of 300 ICT-related startups located in Seoul and Gyeonggi Province
Survey Overview
Research Sample
Analysis of Korean Startup Ecosystem
Overview
Research Samples
Analysis of Korean Startups
Pre-Seed RoundFunding from family, affiliates, and/
or government but not
outside investors
Seed RoundFunding From an accelerator/
angel investor
Series AFirst significant round of
Venture Capital(VC) financing
Series B or LaterVCs invest in later
stages
19659 31 14
Survey Overview
68 Analysis of Startup Ecosystem Korea Startup Index 2017 69
Analysis of Korean Startup EcosystemSnapshot of Korean Startups
Snapshot of Startups Your Average Korean Entrepreneur
Korean Startup Ecosystem
Characteristics of Startup
Number of Founding Members Initial Investment needed*
Consist of members who became acquainted through social settings
Mobile Internet
Seoul
Gangnam District
Seongnam
Most startup-dense regions1st Gangnam-gu/2nd Seongnam
Popular
44.9%27.7%
KRW109.46million
32.3%
31.3%
2.7 people
* Net capital invested in initial phase of startup
Startups are unlike regular businesses
Mobile Internet business fields
Mobile Internet business fields
Future growth potential irrespective of competence
Innovative business model
93.9%22.2% 18.6% 14.5%
Men Co-Foundership
91.7% 90.7%
Entrepreneurial Experience
60.7%
Technology Development Experience Prior to Founding a Startup
40.7%
Founded a Startup to Realize an Idea
38.0%
30’s
48.0%
College Graduate
56.7%
Engineering Major
51.0%
English-Speaking
74.0%
The locations most preferred by startups are Gangnam District in Seoul and Seongnam in Gyeonggi Province. Startups seem to be most active in these areas.
* Events held over multiple days are calculated as one event per day for the duration of the event.
high
low
SeoulGyeonggi-do
IncheonMetropolitanCity
Seongnam
Yeoncheon-gun
Pocheon-si
Dongducheon-si
Ganghwa-gun
Ongjin-gun
Jung-gu Dong-gu
Seo-guBupyeong-gu
Anyang-si
Gyeyang-gu
Bucheon-si
Nam-gu Namdong-gu
Yeonsu-gu
Ansan-siSuwon-si
Pyeongtaek-siAnseong-si
Hwaseong-si
Osan-si Yongin-si
Siheung-siGwangmyeong-si Gwacheon-si
Uiwang-siGunpo-si
Gimpo-siGoyang-si
Yangju-siPaju-si Gapyeong-gun
Uijeongbu-si
Namyangju-si
Guri-si
Hanam-si
Gwangju-si
Icheon-si
Yeoju-si
Yangpyeong-gun
*source Platum, Startup Alliance, K-Startup, D.Camp, Google Campus Seoul, and MARU180 website
Number of Startup Events Held Annually
Average Number of Startup Events Held Daily*
Approx.
2688events
1.3events
70 Analysis of Startup Ecosystem Korea Startup Index 2017 71
Analysis of Korean Startup Ecosystem
International Members in Startup*
Amount of Investment Attracted (or Target Investment)
Number of Companies by Final Investment Round
Women in Startup*
2016년(n=295) 2017년(n=300)
16.3
%
18.7
%
Pre-Seed Round Seed Round Series A Series B or later
KRW
4.23871billion
KRW
2.83929billion
KRW
694.73million
KRW
287.48million
* Percentage of startups with 1+ Women
* Percentage of startups with 1+ International Members
Number of Companies
Female employeesFemale founders
2015(n=459)
2016(n=295)
2017(n=300)
12.3
%
8.5%
8.3%
2016(n=295)
2017(n=300)
67.1
%
64.3
%
Category Pre Seed Seed Series A Series B
Years since founding
Number of employees
Equity capital
Number of tech personnel
Number of female personnel
Number of investment advisors
Number of foreign personnel
Sales
Sales amount
Overseas Expansion
3.5years
7.2
KRW 132.41 million
4.2
1.7
0.3
0.3
81.6%
KRW 740.86 million
11.5%
3.3years
7.9
KRW 215.01 million
4.5
1.8
2.5
0.5
78.0%
KRW 418.31 million
15.3%
4.0years
13.8
KRW 296.48 million
6.6
3.4
1.4
0.7
90.3%
KRW 2.04496 billion
48.4%
4.9years
19.6
KRW 296.35 million
12.4
3.7
0.9
0.4
85.7%
KRW 462.08 million
64.3%
196 59 31 14
72 Analysis of Startup Ecosystem
Comparison of Startup Ecosystems by Tech Hubs
Experienced Software Engineers
Women Founders
Early-stage Funding per Startup (Avg.)
Software Engineer Salary
$174
$276
$451
$509
$762 Silicon Valley
Tel Aviv
London
Singapore
Seoul
Unit: USD 10,000
Silicon Valley
Tel Aviv
London
Seoul
Singapore
Unit: USD 1,000
$35
$38
$52
$63
$112
Silicon Valley
Singapore
London
Tel Aviv
Seoul 68%
74%
79%
80%
87%
Seoul
Silicon Valley
London
Singapore
Tel Aviv 8%
12%
15%
16%
16%
Analysis of Korean Startups
Korea Startup Index 2017 75
Analysis of Korean Startups
Analysis of Korean Startups
Company
Foundation
Founder
Talent & Experience
Funding
Market Reach
Supporter & Policy Maker Insights
Company
2012
2013
2014
2015
2016-
98
45
56
51
50
Funding Year
Number of Members
• Of the 300 companies surveyed, 98 (32.7%) were founded prior to or in 2012; 45 (15.0%) were founded in 2013; and 56 (18.7%) were founded in 2014.
• When comparing companies in terms of company age by investment round, companies in the later the stage of investment round, from Pre-Seed to Series B, were older.
• The average number of members at the time of founding was 2.7, while the average number of current members was 8.6. The startup with the largest number of members at the time of its founding had 21 people, while the startup with the largest number of current members had 90. The startup whose members increased by the largest margin saw an increase of 22 times, from four to 90 people.
• Only 20 startups showed a decrease in their number of members since founding, and 44 startups showed no change in their number of personnel.
• In terms of the average number of members and investment rounds, the number of members at the time of founding and the number of current members were found to increase as companies moved from the Pre-Seed to Series B or later round.
•�A comparison with the results of the 2016 study shows that the number of companies five years old or older increased significantly in 2017.
• The average number of members at the time of founding in 2015 was 10.0; in 2016, it was 8.8; and currently, it is 8.6. The proportion of companies with 11 or more members increased by 5.7%p, from 18.3% in 2016 to 24.0% currently.
Investment Round
Investment Round
Pre Seed
Pre Seed
Seed
Seed
Series A
Series A
Series B
Series B
2015
At time of founding
At time of founding
At time of founding
At time of founding
2.4 2.8 3.1 5.2
Current Current Current Current
7.2 7.9 13.8 20.0
2014 2014 2012
Category
Category
2012
2013
2014
2015
2016-
Total
1
2
3-5
6-10
11 or more
Total
Average
98
45
56
51
50
100
2.7 8.6
29
26
87
86
72
300
32.7
15.0
18.7
17.0
16.7
100
32.7
25.0
37.7
3.3
1.3
10
98
75
113
10
4
300
9.7
8.7
29.0
28.7
24.0
100
Nationwide
At time of founding Current
No. of startups
No. of startups No. of startups
%
% %
Annual stats
Annual stats
In the past year In the pasttwo years
In the pastthree years
In the pastfour years
In the pastfive years
39.3
23.419.7
6.810.8
16.7 17.0 18.715.0
32.7
Unit : %2016(n=295) 2017(n=300)
3 or fewer 4-5 6-10 11 or more
Unit : %2016(n=295)2015(n=691) 2017(n=300)
21.3 21.3
29.2 28.229.123.7
28.8
18.3
28.7
18.7
28.724.0
* As the percentages in the tables of the Analysis of Korean Startups have been rounded up to the
nearest hundredth, the sum of the subsections may be different from the total amount.
76 Analysis of Startup Ecosystem Korea Startup Index 2017 77
Analysis of Korean Startups
66.7%18.0%
3.0%200
54 9 7 5 4 3 3 3 2 2 2 2 1 1 1 1
Seou
l
Gye
onggi-do S
eon
gnam
-si
Gye
onggi-do S
uwon
-si
Gye
onggi-do A
nyan
g-si
Gye
onggi-do G
oyang-si
Gye
onggi-do Yon
gin-si
Inch
eon
Metrop
olitan City
Gye
onggi-do U
iwnag
-si
Gye
onggi-do P
aju-si
Gye
onggi-do G
wan
gju-si
Gye
onggi-do A
nsan
-si
Gye
onggi-do A
nse
ong-si
Gye
onggi-do H
wase
ong-si
Gye
onggi-do B
uch
eon
-si
Gye
onggi-do S
iheung-si
Gye
onggi-do U
ijeon
gbu-si
Gye
onggi-do P
ocheon
-si
51
2819 17
12 12 10 9 8 84 3 3 2 2 2 2 2 2 2 1 1
25.5%
14.0%9.5%
Gan
gnam
District
Map
o District
Seoch
o District
Guro D
istrict
Seon
gdon
g District
Geumch
eon
District
Son
gpa D
istrict
Yeon
gdeungpo D
istrict
Yongsan
District
Jung District
Now
on District
Don
gdae
mun District
Seod
aemun District
Gwan
gjin District
Dob
ong District
Seon
gbuk D
istrict
Jongno D
istrict
Gan
gse
o District
Gwan
ak District
Don
gjak D
istrict
Jungnan
g District
Yangch
eon
District
25.5
%
14.0
% 9.5%
8.5%
6.0%
6.0%
5.0%
36.3
%
10.7
%
9.8%
3.7% 7.
9%
5.6%
3.3%
GangnamDistrict
MapoDistrict
SeochoDistrict
GuroDistrict
SeongdongDistrict
GeumcheonDistrict
SongpaDistrict
Unit : %2016(n=200) 2017(n=216)
Location
•An analysis of the locations of companies revealed that most were located in Seoul (200 companies, 66.7%), followed by Seongnam (54 companies, 18.0%) in Gyeonggi Province.
• Upon closer examination of the locations of companies in Seoul, it was found that the largest proportion of companies were located in Gangnam District (25.5%), followed by Mapo District (14.0%) and Seocho District (9.5%).
•�A comparison with the results of the 2016 study on the locations of companies shows that the proportion of startups located in Gangnam District rose by 10.8%p.
Nationwide
Seoul
Annual stats
54Seongnam-si
12SeongdongDistrict
8YongsanDistrict
8JungDistrict
38
Guro/GeumcheonDistrict
80Seocho/Gangnam/Songpa District
Same
Changed(hired from
outside)
Changed(hired from
inside)5
7
288
Founder and CEO
• Among the startups, 4.0% replaced their CEOs due to: (1) the necessity for an executive with expertise related to the company’s current projects (66.7%); (2) the necessity for the founder(s) to focus on development or marketing (16.7%); and (3) the personal circumstances of the founder(s), such as health issues (8.3%).
• A comparison with the results of the 2016 study reveal that the proportion of companies whose founder is also the CEO remained relatively the same, decreasing only slightly from 96.3% to 96.0% in 2017.
Category
Same
Total
Changed (hired from outside)
Changed (hired from inside)
288
7
5
300
96.0
2.3
1.7
100
Nationwide
No. of startups %
Annual stats
Same Changed(hired from outside)
Changed(hired from inside)
Unit : %2016(n=295) 2017(n=300)
96.3
1.7 2.0
96.0
2.3 1.7
78 Analysis of Startup Ecosystem Korea Startup Index 2017 79
Analysis of Korean Startups
Major Investment Areas
Annual stats Annual stats
172
72 6026 7 7 5 4 3 2 2 2 21
MobileInternet
Automation ofknowledge work
Cloudtechnology
Internet ofThings (IoT)
3D printing VR/AR/MR Renewableenergy
Energystorage
Advancedrobotics
Advancedmaterials
VR Games Software Etc.
Unit: %
Mobile Internet Automation of knowledge work Internet of Things (IoT) Cloud technology 3D printing
50.8
13.920.9
7.6 1.6
44.9
18.8 15.7 6.8 1.8
Unit : %2016(n=368) 2017(n=383)Unit: %2016(n=295)2015(n=685) 2017(n=300)
39.3 39.7
20.1
0.9
46.1
36.3
17.3
0.3
45.738.7
15.7
Less thanKRW 30 million
BetweenKRW 30 and100 million
BetweenKRW 100 million and
KRW 1 billion
KRW 1 billionor more
22.830.7
43.2
3.3
34.628.8 32.5
4.1
25.3 27.7
43.7
3.3
Unit: %2016(n=295)2015(n=662) 2017(n=300)
Less thanKRW 30 million
BetweenKRW 30 and100 million
BetweenKRW 100 million and
KRW 1 billion
KRW 1 billionor more
• The investment areas were categorized using the “12 Disruptive Technologies” selected by the McKinsey Global Institute.• The technologies that are expected to drastically change people’s lives by 2025 include: mobile Internet, automation of knowledge work, Internet of Things (IoT), cloud computing,
advanced robotics, autonomous vehicles, next-generation genomics, energy storage, 3D printing, advanced materials, advanced oil and gas exploration and recovery, and renewable energy.• The areas in which the largest numbers of investments were made were mobile Internet (172 investments, 44.9%), automation of knowledge work (72 investments, 18.8%), and
IoT (60 investments, 15.7%). These three areas accounted for 79.4% of all investments. Meanwhile, the numbers of investments in advanced materials, advanced robotics, VR games, and software made up less than 1% of all investments.• It was found that large businesses tended to focus on game-related areas, such as mobile app services, mobile games, software development & service provision, and game
content development.
•�A comparison with the results of the 2016 study shows that the proportion of mobile Internet fell by 5.9%p, while automation of knowledge work rose by 4.9%p. IoT was found to have fallen by 5.2%p.
•�A comparison of equity capital at the time of startup founding by year shows that the average amount of equity capital rose by 55% from KRW 70.55 million in 2015 to KRW 109.47 million. According to the results of the 2017 study, companies with less than KRW 30 million in equity capital accounted for the largest proportion of companies, at 45.7%, meaning that the number of small-capital startups has increased.
•�The average equity capital was KRW 202.05 million in 2014; KRW 195.18 million in 2015; and KRW 173.26 in 2016. Notably, the proportion of companies with between KRW 100 million and KRW 1 billion in equity capital increased by 11.2%p from 2015 to 2016.
CategoryMobile Internet
Automation of knowledge
work
Internet of Things (IoT)
Cloud technology
3D printing VR/AR/MRRenewable
energyEnergy storage
Advanced materials
Advanced robotics
VR Games Etc.Software
No. of startups
Percentage
172
44.9%
72
18.8%
60
15.7%
26
6.8%
7
1.8%
7
1.8%
5
1.3%
4
1.0%
3
0.8%
2
0.5%
2
0.5%
21
5.5%
2
0.5%
(Multiple answers allowed)
(Multiple answers allowed)
At time of founding Current
Changes in Equity Capital
• The average amount of equity capital held by startups at the time of founding was KRW 109.47 million. Specifically, 45.7% of companies were founded with less than KRW 30 million in equity capital; 38.7%, with between KRW 30 and 100 million; and 15.7% with KRW 100 million or more.
• The average amount of equity capital held by startups in 2016 was KRW 173.26 million. Specifically, 25.3% of companies had less than KRW 30 million in equity capital; 27.7% had between KRW 30 and 100 million; and 43.7% had between KRW 100 million and KRW 1 billion. Compared to the time of their founding, the amount of equity capital held by startups had increased by 58.3%.
• When comparing companies in terms of equity capital by investment round, the amount of equity capital rose from the Pre-Seed to Series A round but fell in the Series B and later rounds.
Less thanKRW 30 million
BetweenKRW 30 and100 million
BetweenKRW 100 million and
KRW 1 billion
KRW 1 billionor more
At time of founding Current
127 116
4776 83
131
10
구분
Less than KRW 30 million
Between KRW 30 and 100 million
Between KRW 100 million and KRW 1 billion
KRW 1 billion or more
Total
Average
At time of founding Current
127
116
47
-
300
KRW 109.467 million KRW 173.259 million
No. ofstartups
76
83
131
10
300
No. ofstartups
45.7
38.7
15.7
-
100
%
25.3
27.7
43.7
3.3
100
%
Investment Round
Pre Seed Seed Series A Series BAt time of founding
At time of founding
At time of founding
At time of founding
KRW 90.89 million
KRW 161.53 million
KRW 155.16 million
KRW 216.79 million
Current Current Current Current
KRW 132.41 million
KRW 115.01 million
KRW 296.48 million
KRW 296.35 million
80 Analysis of Startup Ecosystem Korea Startup Index 2017 81
Analysis of Korean StartupsFoundation
1 2 3-5 6-10 0 1 2 3-5 6-10 001 2
Number of co-founders with shares Number of female co-founders with shares Number of tech co-founders with shares14471 56
1 28 55 3
242 15644 22 1
77
Unit : %Unit : %Unit : %2016(n=295) 2017(n=300)
1 2 3-5 6-10 11-20 0 1 2 3-5 6-10 11-20 0 1 2 3-5 6-10 11-20 0
Number of co-founders with shares Number of female co-founders with shares Number of tech co-founders with shares
28.1 26.1 36.93.1 0.7 5.1
48.0
23.7 18.7 0.3 9.3 20.35.4 1.418.3 1.0
38.672.9
80.7
20.7 14.20.3
26.152.0
14.7 7.3 0.3 25.7
Number of Co-founders with Shares
•�An average of 1.6 co-founders held shares in their companies, and most companies (48%) had one co-founder with shares. An average of 0.2 female founders held shares, and only 19.3% of companies had female founders with shares.•�An average of 1.1 tech experts held shares in their companies, and tech experts at 223 startup companies, which accounted for 74.3% of all startups, have held shares in their
companies from the time of founding.
CategoryNumber of co-founders with shares Number of female co-founders with shares Number of tech co-founders with shares
No. of startups No. of startups No. of startups% % %
0
1
2
3-5
6-10
Total
2814471561
300
9.348.023.718.70.3100
80.718.31.0--
100
7715644221
300
25.752.014.77.30.3100
242553--
300
• The average number of co-founders holding shares decreased by 0.9 compared to 2016. In particular, the number of companies with one person holding shares increased by 19.9%p.•The average number of women and tech experts holding shares has decreased by 0.2 compared to 2016.• In terms of investment rounds, the number of people holding shares and number of tech experts both increased from the Pre-Seed to Series B round.
Investment Round
Pre Seed Seed Series A Series B
1.5 1.6 2.0 2.9
Investment Round
Pre Seed Seed Series A Series B
1.0 1.0 1.3 2.1
Annual stats
Average 1.6
Average 2.5 in 2016
Average 1.6 in 2017
Average 0.4 in 2016
Average 0.2 in 2017
Average 1.3 in 2016
Average 1.1 in 2017
Average 0.2 Average 1.1
Composition of Founding Members
Startup Locations and Preferences
• Founding members became acquainted with one another mostly through meetings in social settings, accounting for 27.7%, of which 24.3% met at work and 21.3% met at school. One person companies accounted for 15.7% of all companies, and only eight (2.7%) had found their members through official recruitment.
• It was found that 180 startups (60.0%) were established in Seoul, and 80 (26.7%) were founded in Gyeonggi Province.
• An analysis of startups’ preferred locations showed that 60.3% preferred Seoul, while 35.3% preferred Gyeonggi Province. Among those preferring Gyeonggi Province, the largest proportion (31.3%) preferred Seongnam.
• A comparison with the results of the 2016 study shows that the proportion of founding members who became acquainted through school fell by 4.8%, while that of one person companies rose to 15.7% in 2017.
• A comparison of startups’ preferred locations with the results of the 2016 study shows that startups’ preference for Gyeonggi Province rose by 8.5%p, with interest in Seongnam, located in Gyeonggi Province, rising by 9.3%p. This change seems to have been brought on by the improved corporate environment in Seongnam’s Pangyo area.
Annual stats
Annual stats
Unit : %2016(n=295) 2017(n=300)
28.1
25.8
4.4 6.4 9.
2
27.7
24.3
26.1
21.3
15.7
3.3
2.7
2.3
2.7
Acquainted through other social settings
Coworkers one man business
Attended the same school
family Official recruitment
Met through forums, projects,
or other startup activities
Other
Seoul GyeonggiProvince
Other SeoulGangnam District
Gyeonggi-doSeongnam-si
Unit: %2016(n=295) 2017(n=300)
71.9
26.8
1.3
60.3
35.3
1.9
39.022.0
32.3 31.3
Seoul Gyeonggi Province Other
180
40
181
10680
1360.0% 60.3% 26.7% 35.3%
Unit : %Startup location
Gangnam District 97 (32.3%)
Preferred location
Seongnam, Gyeonggi Province 93 (31.3%)
8373
64
47
10 8 7 8
Acquainted through other social settings
Coworkers one man business
Attended the same school
family Official recruitment
Met through forums, projects,
or other startup activities
Other
27.7% 24.3% 21.3% 15.7% 3.3% 2.7% 2.3% 2.7%
Startup Preferences
82 Analysis of Startup Ecosystem Korea Startup Index 2017 83
Analysis of Korean Startups
Factors Influencing Location Decisions
Ease oftransportation
Quality ofinfrastructure
Ease ofsecuringpersonnel
Extent of local government
support for startups’ projects
Number ofstartups
Affordable rent Ease of access Concentration of cooperating companies
Diversity ofnetworks
Number of IT-based companies
Number of related organizations
and facilities
Other
39 36 31 29 29 24 20 17 16 10 10
228
• The main factors influencing startups’ location decisions were: ease of transportation (8.0%), ease of securing personnel (7.4%), and quality of infrastructure (6.3%). This shows that the startup environment and infrastructure are important factors that are considered when startups select the locations of their companies.
Category Ease of transportation
Ease of securing
personnel
Quality of infrastructure
Extent of local government support for
startups’ projects
Number of startups
Affordable rent Ease of accessDiversity of networks
Concentration of cooperating
companies
Number of IT-based
companies
Number of related
organizations and facilities
Other
No. of Startups
%
39
8.0%
36
7.4%
31
6.3%
29
5.9%
29
5.9%
24
4.9%
20
4.1%
17
3.5%
16
3.3%
10
2.0%
10
2.0%
228
46.6%
Considerations Concerning the Location of Startups
• When selecting their locations, startups’ most important consideration was the availability of affordable/rent-free space (49.7%), followed by accessibility for workers and clients (26.3%) and density of organizations and facilities for startups (10.0%).
• A comparison with the results of the 2016 study shows that the number of companies choosing their location based on the availability of affordable rent or rent support has increased by 3.3%p. This indicates that infrastructure support, such as startup incubators, has a significant impact on startups’ decisions regarding location.
Annual stats
46.4
%
26.1
%
15.3
%
3.1% 4.1%
5.1%
49.7
%
26.3
%
10.0
%
4.3%
1.7% 8.
0%
Affordable/rent-free spaces
Accessibility for employees, ease of access
to public transportation,
etc.
Density of professional
organizations and facilities for startups
Density of startups
Affordable/rent-free
Conference and work spaces
Others
Unit: %2016(n=295) 2017(n=300)149
79
30
13
5
24
Affordable/rent-free spaces
Density of professional organizationsand facilities for startups
Density of startups
Others
Affordable/rent-free Conferenceand work spaces
Accessibility foremployees, ease of access to public transportation, etc.
49.7%
26.3%
10.0%
4.3%
1.7%
Founder
Gender of Entrepreneurs
Age of Entrepreneurs
•There were 275 startups with male entrepreneurs, accounting for 91.7%.
• The average age of new entrepreneurs was 38.7; with 48.0% being in their 30s; 48.0%, in their 40s; and 8.3%, in their 20s.
•The number of male founders was found to have increased steadily from 2015 to 2017.
•�The average age of founders rose from 36.0 in 2016 to 38.7 in 2017. The proportion of founders in their 40s was found to have increased steadily leading up to 2017.
Annual stats
Annual statsAverage
Male Female
Unit: %2016(n=295)2015(n=459) 2017(n=300)
87.7
12.3
91.5
8.5
91.7
8.3
7.4
45.6
22.5 24.418.6
49.2
28.1
4.18.3
48.034.3
9.3
Unit: %2016(n=295)2015(n=471) 2017(n=300)
20s 30s 40s 50s
Male Female
275
2591.7% 8.3%
25
144
103
28
8.3% 34.3% 9.3%48.0%
20s 30s 40s 50s
84 Analysis of Startup Ecosystem Korea Startup Index 2017 85
Analysis of Korean Startups
Educational Background of Entrepreneurs
Majors
• The highest level of education completed by the majority of entrepreneurs was college (56.7%), followed by master’s programs (29.0%), doctorate programs (10.3%), and less than or equivalent to high school (4.0%).
• The areas of work in which new entrepreneurs were involved prior to launching their startups included: technology development (40.7%), business planning/development (26.3%), marketing/sales (12.7%), design (7.0%), and finance (2.3%).
•�Among startup entrepreneurs, 51.0% majored in engineering; 17.0%, in commerce and business; and 12.7%, in the humanities.
• A comparison of the educational background of founders by year reveals that the proportion of college graduates was falling, while the proportion of master’s degree holders was increasing.
• A comparison with the results of the 2016 study shows that the proportion of technology development increased by 7.1%p, while that of marketing and sales fell by 3.2%p.
• A comparison with the results of the 2015 study shows that the number of founders with engineering majors decreased slightly in 2016 and 2017 yet remained high compared to those with other majors. The number of founders with commerce and business majors has been increasing since 2015.
Annual stats Annual stats
Annual stats
11.3
73.8
1.113.8
4.1
60.7
25.4
9.88.3
56.7
29.010.3
Unit: %2016(n=295)2015(n=362) 2017(n=300)
Less than equivalent to high school graduate
College graduate
Master’s degree holder
Doctorate degree holder
Unit: %2016(n=295) 2017(n=300)
33.627.1
15.9
6.42.4 2.0
12.5
40.7
26.3
12.77.0
2.3 1.0
10.0
Technologydevelopment
Business planning/
development
Marketing/Sales
Design Human resources
Finance Other
Unit: %2016(n=295)2015(n=426) 2017(n=300)
Engineering Commerce and business
Humanities Art, music, and physical education
69.2
4.517.8
7.0
51.6
19.1 12.4 6.7
51.0
17.0 12.7 6.7
12
170
87
31
29.0% 10.3%56.7%
Less than equivalent to high school graduate
College graduate
Master’s degree holder
Doctorate degree holder Technology
developmentBusiness planning/
development
Marketing/Sales
Design Human resources
Finance Other
122
79
3821 7
3
30
40.7% 26.3% 12.7% 7.0% 2.3%
Engineering Commerce and business
Humanities Natural sciences
Art, music, and physical education
Other
153
5138
22 20451.0% 17.0% 12.7% 7.3%
Have experiencefounding a startup
Have no relatedexperience
Have experienceworking at a
startup
Have experiencewith startupincubation
Have invested ina startup 25
26
54
85
182
Areas of Work Prior to Launching a Startup
Experience with Startups
• Among all entrepreneurs, 60.7% answered that they had experience founding startups, and 77.2% answered that they had experience founding startups, working at startups, incubating startups, and/or investing in startups.
• A comparison with the results of the 2016 study shows that the proportion of founders who answered that they had prior experience founding a startup (25.7%) increased significantly, while that of founders with no such prior experience fell by 8.7%p.
Category
Have experience founding a startup
Have no related experience
Have experience working at a startup
Have experience with startup incubation
Have invested in a startup
Total
182
85
54
26
25
372
48.9
22.8
14.5
7.0
6.7
100
NationwideNo. of
startups %
Annual stats
35.0 37.0
15.87.6 4.5
60.7
28.318.0
8.7 8.3
Unit: %2016(n=295) 2017(n=300)
Have experience founding a startup
Have norelated
experience
Have experience working at a
startup
Have experience with startup incubation
Have invested in a startup
(Multiple answers allowed)(Multiple answers allowed)
86 Analysis of Startup Ecosystem Korea Startup Index 2017 87
Analysis of Korean Startups
English
None
Japanese
Chinese 5
18
55
222
Able to use simple business terms
Able to have simple conversations
Near native
Not fluent but able to communicate with foreigners
38
50
74
83
To realize their ideas
Don’t know
Other
To solve problems
To escape from their previous job
For livelihood/survival
To pursue their dreams
To offer people greater convenience
Due to difficulties finding employment
To realize their own value system
Due to the popularity of founding startups
Due to the large number of startup-related support policies
827
2
3
4
5
5
14
15
23
80
114
To realize their ideas
To solve problems
To escape from their previous job
For livelihood/survival
To pursue their dreams
To realize their own value system
Don’t know
Other
Due to the popularity of founding startups
Due to the large number of startup-related support policies
Due to difficulties finding employment
To offer people greater convenience
16
27
4
9
1131
33
57
59
117
184
242
Entrepreneurs and Second Language Proficiency
Level of Second Language Proficiency
Reasons for Founding a Startup
• Among all entrepreneurs, 74.0% spoke English as a second language, and 6.0% spoke Japanese as a second language. 18.3% answered that they spoke no second languages.• When comparing companies in terms of founders’ second language proficiency by
investment round, founders of startups in the Pre-Seed round were found to be relatively less proficient in English.
• Among those who answered that they can speak a second language, 33.9% indicated that they can use simple business terms, while 30.2% responded that they are able to have simple conversations. Also, 35.9% answered that they are able to converse with foreigners.• In terms of founders’ second language proficiency and investment rounds, founders of startups in the Pre-Seed round could engage in only simple conversation in a second
language.
•�Among startup founders, the largest proportion, about 38.0%, answered that they founded their startup to realize their ideas, while 26.7% answered that they wanted to solve problems, and 7.7% said they wanted to escape from their previous jobs.
• The three main reasons that led startup founders to found their own companies were: to realize their ideas (30.6%), to solve problems (23.3%), and to offer people greater convenience (14.8%).
• A comparison with the results of the 2016 study shows that the number of founders who speak English as a second language rose by 2.1%p, and those who do not speak a second language rose by 0.3%p.
Investment Round
Investment Round
Pre Seed
Pre Seed
Seed
Seed
Series A
Series A
Series B
Series B
69.4%
Able to have simple
conversations
84.7%
Able to use simple business
terms
80.6%
Able to use simple business
terms
78.6%
Able to use simple business
terms
Category
Category
Category
Category
English
None
Japanese
Chinese
Total
Able to use simple business terms
Able to have simple conversations
Near native
Total
Not fluent but able to communicate with foreigners
222
55
18
5
300
83
74
50
38
245
74.0
18.3
6.0
1.7
100
33.9
30.2
20.4
15.5
100
To realize their ideas
To solve problems
To escape from their previous job
For livelihood/survival
To offer people greater convenience
To pursue their dreams
Due to difficulties finding employment
To realize their own value system
Due to the popularity of founding startups
Due to the large number of startup-related support policies
Don’t know
Other
Total
To realize their ideas
To solve problems
To escape from their previous job
For livelihood/survival
To offer people greater convenience
To pursue their dreams
Due to difficulties finding employment
To realize their own value system
Due to the popularity of founding startups
Due to the large number of startup-related support policies
Don’t know
Other
Total
114
80
23
15
14
5
5
4
3
2
27
8
300
242
184
117
59
57
33
31
11
9
4
27
16
790
38.0
26.7
7.7
5.0
4.7
1.7
1.7
1.3
1.0
0.7
27.4
2.7
100
30.6
23.3
14.8
7.5
7.2
4.2
3.9
1.4
1.1
0.5
3.4
2.0
100
Nationwide
Nationwide
Nationwide
Nationwide
No. of startups
No. of startups
No. of startups
No. of startups
%
%
%
%
Total
Top choice
71.9
18.06.4 2.0 1.7 1.7
74.0
18.36.0
Unit: %2016(n=295) 2017(n=300)
English None Japanese OtherChinese
Annual stats
88 Analysis of Startup Ecosystem Korea Startup Index 2017 89
Analysis of Korean Startups
1
2-3
4-5
6-10
11 or more
0 122
10
12
21
68
67 Yes
No 64
236
3
10
11
37
198
410 months
1-6 months
7-12 months
13-18 months
18-24 months
25 months or more
1
2-3
4-5
6-10
11 or more
0 22
23
55
49
89
62
Number of Members with Prior Startup Experience Startups with tech personnel at the time of founding
Time of hiring tech personnelNumber of tech personnel
• Startups had an average of 1.9 members with prior startup experience. Approximately 40.7% of companies had no members with prior startup experience; 22.3% had one member with prior experience; and 22.7% had two to three members with prior experience. Overall, about 60% of companies had members with prior startup experience.
• Overall, 78.7% of companies had members with a tech background since the time of founding.
• Upon closer examination of when startups hired their tech personnel, it was found that the majority of companies (66%) hired tech personnel from one to six months after their founding. This shows that a large proportion of startups hired tech personnel in the early stages of their establishment.
• Startups had an average of 4.9 tech personnel each. The largest proportion of startups, about 29.7%, had two to three tech personnel, while only 7.3 percent had no tech personnel at all. This shows that there is a high dependency on tech personnel in startups.• When comparing companies in terms of the number of tech personnel by
investment round, the number of tech personnel increased from the Pre-Seed to Series B round.
•�A comparison with the results of the 2016 study shows that the number of startups that had no members with prior startup experience rose by 11.2%p, which means the proportion of startups that had members with prior startup experience decreased.
• A comparison with the results of the 2016 study shows that the number of startups with members with a tech background at the time of founding increased by 3.1%p, from 75.6% in 2016 to 78.7%.
•�Compared with the results of the 2016 study, the proportion of startups that hired tech personnel within one to six months of founding rose by 34.6%p, from 31.4% in 2016 to 66.0% in 2017. In contrast, the proportion of startups that hired tech personnel between 18 and 24 months of founding dropped significantly by 25.3%p.
• The average number of tech personnel at startups increased by 0.9, from 4.0 in 2016. Of particular note, the number of companies with four to five tech personnel rose by a remarkable 8.2%p.
Category
Category
CategoryCategory
0
1
2-3
4-5
6-10
11 or more
Total
Yes
No
Total
0 months
1-6 months
7-12 months
13-18 months
18-24 months
25 months or more
Total
122
67
68
21
12
10
300
236
64
300
41
198
37
11
10
3
300
40.7
22.3
22.7
7.0
4.0
3.3
100
78.7
21.3
100
13.7
66.0
12.3
3.7
3.3
1.0
100
01
2-34-56-10
11 or moreTotal
226289495523
300
7.320.729.716.318.37.7100
Nationwide
Nationwide
NationwideNationwide
No. of startups
No. of startups
No. of startups
No. of startups
%
%
%%
Annual stats Annual stats
Annual statsAnnual stats
Unit: %2016(n=295) 2017(n=300)
1 02-3 4-5 6-10 11 or more
21.727.5
8.1 10.5
2.7
29.522.3 22.7
7.04.0 3.3
40.7 75.6
24.4
78.7
21.3
Unit: %2016(n=295) 2017(n=300)
Yes No
31.4
16.44.5
28.619.113.7
66.0
12.33.7 3.3 1.0
Unit: %2016(n=295) 2017(n=300)
0months
24 monthsor more
1-6months
7-12months
13-18months
18-24months
20.3
40.3
8.1
17.6
4.88.8
20.7
29.7
16.3 18.3
7.7 7.3
Unit: %2016(n=295) 2017(n=300)
1 02-3 4-5 6-10 11 or more
Average 1.9
Average 4.3 monthsAverage 4.9
Talent & Experience
Investment Round
Pre Seed Seed Series A Series B
4.2 4.5 6.6 12.4
90 Analysis of Startup Ecosystem Korea Startup Index 2017 91
Analysis of Korean Startups
Less than
KRW 30 million
Between KRW 30
and 50 million
Between KRW 50
and 100 million
No software
developer24
43
178
55
Salary of Software Developers
Type of personnelEquity investors
• The average salary among software developers was found to be KRW 40.47 million. Developers receiving salaries between KRW 30 and 50 million accounted for the largest proportion, at 59.3%, while 18.3% received less than KRW 30 million.
• On average, companies had two female personnel, 0.4 telecommuters, and 0.4 foreigners. • Among the surveyed companies, 35.7% had no female personnel; 79.7% had no
telecommuters, and 81.3% had no foreigners.• When comparing companies by investment round, the number of female personnel
at companies increased from the Pre-Seed to Series B round. In terms of telecommuters, Seed round companies had the fewest, while Series B round and later companies had the most.
•�The average number of equity investors was 0.9, and the average number of employees holding shares was 1.7. Overall, 65.3% of companies had no equity investors, while 42.0% had no employees with shares.
•�When comparing companies by investment round, the number of employees holding shares increased from the Pre-Seed to Series B round. The number of financial advisors was the smallest in the Pre-Seed round and decreased continuously through the Seed and Series B rounds.
• A comparison with the results of the 2016 study shows that the average salary of software developers rose by KRW 7.47 million, from KRW 33 million in 2016 to KRW 40.47 million. In particular, the number of software developers with salaries less than KRW 30 million was found to have decreased by 13.9%p.
• A comparison with the results of the 2016 study shows that the average number of female members at startups fell by 0.3, from 2.3 in 2016 to 2.0. The number of companies with no female members at all increased by 2.8%p.
• A comparison with the results of the 2016 study shows that the number of companies with no equity investors or employees holding shares decreased only marginally.
• A comparison with the results of the 2016 study shows that the average number of telecommuters fell by 0.1, from 0.5 in 2016 to 0.4. The number of companies with no telecommuters at all was found to have increased by 9.2%p.
• A comparison with the results of the 2016 study shows that the average number of foreigners increased by 0.1, from 0.4 in 2016 to 0.5. The number of companies with no foreigners at all fell by 2.4%p.
Category
Less than KRW 30 million
Between KRW 30 and 50 million
Between KRW 50 and 100 million
No software developer
Total
55
178
43
24
300
18.3
59.3
14.3
8.0
100
NationwideNo. of
startups %
Annual stats
Annual statsAnnual stats
Annual stats Annual stats
32.2
55.8
11.60.4
18.3
59.3
14.3 8.0
Unit: %2016(n=295) 2017(n=300)
Less thanKRW 30 million
BetweenKRW 30 and50 million
BetweenKRW 50 and100 million
more Than100 million
No softwaredeveloper
Unit: %2016(n=295) 2017(n=300)
1 2 3 4 More than 5 0
27.822.0
16.615.07.8
12.04.7
10.2 9.7
32.9 35.7
Unit: %2016(n=295)
2017(n=300)
1 2 3 4 More than 5
0
18.6
12.2
4.4
2.7
3.1
59.0
18.3
8.7
2.7
1.7 3.3
65.3
16.9
21
.0
12.5
9.2
9.2
31.2
23.0
16.7
12.7
4.0
1.7
42.0
단위 : %2016(n=295)
2017(n=300)
1 2 3 4 More than 5
0
17.37.5 2.7 1.0 1.0
70.579.7
13.34.0 1.7 0.3 1.0
Unit: %2016(n=295) 2017(n=300)
1 2 3 4 More than 5 0
12.91.4 0.7 0.3
83.7 81.3
1.011.7
4.3 1.7 1.0
Unit: %2016(n=295) 2017(n=300)
1 2 3 4 More than 5 0
Average KRW 40.47 million
Proportion of companies employing more than one person
Proportion of companies employing more than one person
64.3% 20.3%
34.7% 58.0%
18.7%
2.3
2.0
Average in 2016
Average in 2017
0.5
0.4
Average in 2016
Average in 2017
0.3
0.4
Average in 2016
Average in 2017
Category
Category0
1
2
3
4
More than 5
Total
Average
0
1
2
3
4
More than 5
Total
Average
107
66
45
36
17
29
300
196
55
26
8
5
10
3002.00.9
0.41.7
0.4
239
40
12
5
1
3
300
126
69
50
38
12
5
300
244
35
13
5
-
3
300
35.7
22.0
15.0
12.0
5.7
9.7
100
65.3
18.3
8.7
2.7
1.7
3.3
100
79.7
13.3
4.0
1.7
0.3
1.0
100
42.0
23.0
16.7
12.7
4.0
1.7
100
81.3
11.7
4.3
1.7
-
1.0
100
Female personnel
Financial advisor
Telecommuters
No. of employees with shares
Foreigners
No. of startups
No. of startups
No. of startups
No. of startups
No. of startups
%
%
%
%
%
Investment Round Investment
Round
Pre SeedPre Seed
SeedSeed
Series ASeries A
Series BSeries BFemale
personnelFinancial advisor
Female personnel
Financial advisor
Female personnel
Financial advisor
Female personnel
Financial advisor1.7
0.3명1.8
2.5명3.4
1.4명3.7
0.9명
TelecommutersEmployees with shares
TelecommutersEmployees with shares
TelecommutersEmployees with shares
TelecommutersEmployees with shares0.4
1.1명0.2
1.8명0.3
2.9명1.3
6.1명
Female personnel
ForeignersTelecommuters
Financial advisor No. of employees with shares
92 Analysis of Startup Ecosystem Korea Startup Index 2017 93
Analysis of Korean Startups
Currently offering Currently not offering
70
230
23.3% 76.7%
Currently offering Currently not offering
233
6777.7% 22.3%
Offering of or Intention to Offer Stock Option
• The research showed that 23.3% of companies offered their employees stock option incentives, and 76.7% were planning to offer stock option incentives.• When comparing companies by investment round, the number of companies offering stock option incentives increased from the Pre-Seed to Series B round. However, the
number of those planning to offer stock option incentives rose from the Pre-Seed to Series A round but fell from the Series B round and after.
Intention to offer stock option incentivesOffering of stock option incentives
Investment Round
Investment Round
Investment Round
��Currently offering ��Intention to offer stock option incentives
Pre Seed
Pre SeedPre Seed
Seed
SeedSeed
Series A
Series ASeries A
Series B
Series BSeries B
5%
71.9%14.8%
25%, 100%
91.5%32.2%
100%
90.3%48.4%
1%, 100%
7.4%50.0%
Ratio of Stock Options to Salary Offered to Employees
Unit: %2016(n=737) 2017(n=818)
Self-financing (own funds)
Technology guarantee funds
or credit guarantee funds
Central government or government ministries
Angel investors
or accelerators
Family members
or acquaintances
Banks or non-bank financial
institutions
Venture capital(VC)
Local governments
Other companies
Crowdfunding
19.917.2 17.0
13.0 10.33.4
8.3 6.5 5.6 3.9 1.4
21.9 20.914.3
9.0 8.6 7.2 6.23.4 2.0
75 4
1
9
1
12
1 13
52 2 1
10
1 14
1% 2% 3% 4% 5% 8% 10% 12% 15% 20% 25% 30% 50% 75% 100% 130% 150% 200%
10.0
%
12.9
%
17.1
%
14.3
%
•�Looking at the ratio of stock options to salary offered to employees, it was found that the largest proportion of companies, or about 17.1%, offered a 10% ratio, while 14.3% offered a 100% ratio. Furthermore, 55.7% companies offered a ratio of less than 10%, while 22.9 percent offered one more than 100%.• When comparing companies by investment round, the majority of companies in the Pre-Seed round offered a ratio of 5%, while that figure was 25% in the Seed round, 100% in
the Series A round; and 1% and 100% in the Series B round.
Average 39.0%
Funding
16
28
51
53
59
70
74
117
171
179Self-financing (own funds)
Technology guarantee funds orcredit guarantee funds
Central government orgovernment ministries
Family members oracquaintances
Banks or non-bankfinancial institutions
Venture capital (VC)
Local governments
Other companies
Crowdfunding
Angel investors or accelerators
Business Financing
• The largest proportion of startups, about 21.9%, were self-financed, while 20.9% were funded by technology guarantee funds or credit guarantee funds and 14.3% were funded by the central government or government ministries.
• A comparison with the results of the 2016 study shows that the number of startups that were self-funded (own funds) or funded by technology guarantee funds, credit guarantee funds, banks, or non-bank financial institutions increased slightly, while the number of startups funded by the central or local governments, angel investors or accelerators, family members or acquaintances, or venture capital decreased.
Category
Self-financing (own funds)
Technology guarantee funds or credit guarantee funds
Central government or government ministries
Angel investors or accelerators
Family members or acquaintances
Banks or non-bank financial institutions
Venture capital (VC)
Local governments
Other companies
Crowdfunding
Total
179
171
117
74
70
59
53
51
28
16
818
21.9
20.9
14.3
9.0
8.6
7.2
6.5
6.2
3.4
2.0
100
Nationwide
No. of startups %
Annual stats
(Multiple answers allowed)
(Multiple answers allowed)
94 Analysis of Startup Ecosystem Korea Startup Index 2017 95
Analysis of Korean Startups
투자 단계별 기업 수 Desired Amount of Initial Investment
Current Difficulties Attracting InvestmentDesired Investors for Pre-Seed Round
Pre Seed Round
Seed Round
Series A
Series B or later
Exit
14
31
59
196
3336
1114
252931
Venture capital(VC)
Central governmentor government ministries
Technology guarantee fundsor credit guarantee funds
Other companies
Self-financing(own funds)
Crowdfunding
Angel investorsor accelerators
Banks or non-bankfinancial institutions
Family or acquaintances
• Financing stages were divided into: Pre-seed Round, Seed Round, Series A, Series B or later, and Exit. Startups in the Pre-seed Round accounted for 65.3%; followed by those in the Seed Round, at 19.7%; Series A, at 10.3%; Series B or later, at 4.7%.
• The largest number of startups in the Pre-Seed round (24.8%) hoped to attract funds from angel investors or accelerators, followed by VCs (22.2%). In addition, 20.0% of startups hoped to attract funding from the central government or government ministries.
•�The proportion of startups in the Pre-Seed round has increased significantly, while the proportions of startups in the Seed, Series A, and Series B rounds have all decreased.
• A comparison with the results of the 2016 study shows that the proportion of startups that wish to receive funding from the central or local governments increased by 5.5%p.
Category
Category
Pre Seed Round
Seed Round
Series A
Series B or later
Exit
Total
Angel investors or accelerators
Venture capital (VC)
Central government or government ministries
Technology guarantee funds or credit guarantee funds
Other companies
Crowdfunding
Self-financing (own funds)
Banks or non-bank financial institutions
Family or acquaintances
Total
196
59
31
14
-
300
31292514116333
125
65.3
19.7
10.3
4.7
-
100
24.823.220.011.28.84.82.42.42.4100
Nationwide
Nationwide
No. of startups
No. of startups
%
%
Annual stats
Annual stats
53.9
31.5
11.91.7 1.0
65.3
19.710.3 4.7
Unit: %2016(n=295) 2017(n=300)
Pre Seed Round Seed Round Series A Series B or later Exit
25.2
25.2
14.5
11.9
6.3
2.5 5.
7
0.6 3.
1
3.1
24.8
23.2
20.0
11.2
8.8
4.8
2.4
2.4
2.4
Unit: %2016(n=159) 2017(n=125)
Angelinvestors oraccelerators
Venturecapital(VC)
Centralgovernment
or governmentministries
Technologyguaranteefunds
or creditguaranteefunds
Othercompanies
Banksor non-bankfinancial
institutions
Localgovernments
Familyor
acquaintances
Crowdfunding
Self-financing
(own funds)
79
32
9
2
3Less than
KRW 10 million
Between KRW 10and 50 million
Between KRW 50and 100 million
Between KRW 100and 300 million
KRW 300 millionor more
• The average amount of initial funding that startups hoped to attract was KRW 694.73 million. The largest proportion (63.2%) hoped to attract initial funding of more than KRW 300 million, followed by those seeking KRW 100 to 300 million (25.6%).
• The difficulties faced by startups in the Pre-Seed round included: evaluation based on short-term (sales) results, difficulty finding investors, and lack of networks.
• A comparison with the results of the 2016 study shows that the average initial investment that startups hoped to attract increased by KRW 199.28 million, from KRW 495.45 million in 2016 to KRW 694.73 in 2017. Meanwhile, the proportion of startups that hoped to attract an initial investment of over KRW 300 million rose by 21.1%p.
Category
Less than KRW 10 million
Between KRW 10 and 50 million
Between KRW 50 and 100 million
Between KRW 100 and 300 million
KRW 300 million or more
Total
3
2
9
32
79
125
2.4
1.6
7.2
25.6
63.2
100
NationwideNo. of
startups %
Annual stats
1.9 3.8 8.8
43.4 42.1
2.4 1.6 7.2
25.6
63.2
Unit: %2016(n=159) 2017(n=125)
Less thanKRW 10 million
BetweenKRW 10
and 50 million
BetweenKRW 50
and 100 million
BetweenKRW 100
and 300 million
KRW 300 millionor more
Average KRW 694.73 million
Investment decisions are based on short-term (sales) results1 Lack of personnel6Difficulty finding investors2 Lack of interest among investors in certain areas7Lack of networks3 Difficulty convincing investors of the profitability
of projects8Not enough opportunities to explain the project4 Necessity of having a near-completed system9Difficulty with investor relations (IR)5 Lack of time10
Pre Seed Round
Pre Seed Round
Pre Seed Round
96 Analysis of Startup Ecosystem Korea Startup Index 2017 97
Analysis of Korean Startups
Most Recent Year in Which Startups Attracted Funding
Amount of Funding Attracted
24
22
9
3
12012
2014
2015
2016
2017
4
10
7
14
15
9Less thanKRW 50 million
Between KRW 50and 100 million
Between KRW 100and 300 million
Between KRW 300and 500 million
BetweenKRW 500 millionand KRW 1 billion
KRW 1 billionor more
• The largest number of startups had last attracted funding in 2017 (40.7%), followed by those who had done so in 2016 (37.3%).
• The average amount of funding that startups had attracted from angel investors and accelerators was KRW 287.48 million. The largest proportion of companies had received funding in the range of KRW 50 million to 100 million (25.4%), followed by KRW 100 million to 300 million (23.7%), KWR 500 million to KRW 1 billion (16.9%), less than KRW 50 million (15.3%), and KRW 300 million to 500 million (11.9%).
• A comparison with the results of the 2016 study shows that a large proportion of startups had last attracted funding in 2017, and that a similar proportion of startups had last attracted funding in 2016.
• The average amount of funding attracted most recently by startups rose by KRW 29.75 million, from KRW 257.73 million . In particular, the proportion of companies that had attracted funding in the range of KRW 500 million to KRW 1 billion rose by 12.6%p.
Category
Category
2012
2014
2015
2016
2017
Total
Less than KRW 50 million
Between KRW 50 and 100 million
Between KRW 100 and 300 million
Between KRW 300 and 500 million
Between KRW 500 million and KRW 1 billion
KRW 1 billion or more
Total
1
3
9
22
24
59
9
15
14
7
10
4
59
1.7
5.1
15.3
37.3
40.7
100
15.3
25.4
23.7
11.9
16.9
6.8
100
Nationwide
Nationwide
No. of startups
No. of startups
%
%
Annual stats
Annual stats
1.1 2.28.6
54.8
33.3
1.7 5.115.3
37.3 40.7
Unit: %2016(n=93) 2017(n=59)
2012 20142013 2015 2016 2017
25.8
8.6
37.6
12.9
4.310.8
15.3
25.4 23.7
11.916.9
6.8
Unit: %2016(n=93) 2017(n=59)
Less thanKRW
50 million
BetweenKRW 100
and300 million
BetweenKRW 50
and100 million
BetweenKRW 300
and500 million
BetweenKRW
500 millionand
KRW 1 billion
KRW1 billionor more
Desire to Attract Investment from VC Firms in the Seed Round
Difficulties Attracting Investment from Venture Capital Firms (VCs)
14
45Yes
No
• Among the respondent startups, % hoped to attract their next round of funding from VC firms.
• The difficulties faced by startups in attracting investment included: evaluation based on short-term (sales) results, difficulty making value estimations for projects, and difficulty convincing VCs of the profitability of projects.
• A comparison with the results of the 2016 study shows that the proportion of startups that wished to attract funding from venture capital firms decreased by 11.9%p.
Category
Yes
No
Total
45
14
59
76.3
23.7
100
Nationwide
No. of startups %
Annual stats
88.2
11.8
76.3
23.7
Unit: %2016(n=93) 2017(n=59)
Yes No
Investment decisions are based on short-term (sales) results1 Not enough opportunities to explain projects6Difficulty making value estimations2 Difficulty with investor relations7Difficulty convincing VCs of the profitability of projects3 Projects are in areas with which VCs are unfamiliar8Difficulty finding investors4 Lack of VCs’ capacity to verify the technology9Difficulty proving profit model5 Lack of VCs’ capacity to provide consulting on
technology commercialization10
Seed Round
Seed Round
Seed Round
Seed Round
98 Analysis of Startup Ecosystem Korea Startup Index 2017 99
Analysis of Korean Startups
Round Total Investment Attracted from VC Firms
Estimated Value of Startups at Initial Investment Stage
5
7
8
6
5Less than
KRW 100 million
Between KRW 100and 500 million
BetweenKRW 500 millionand KRW 1 billion
Between KRW 1and 3 billion
KRW 3 billionor more
13
4
6
8Less than
KRW 500 million
BetweenKRW
1 and 3 billion
BetweenKRW
3 and 5 billion
KRW5 billionor more
• The total investment that Series A startups attracted from VCs was KRW 1.53387 billion. The largest proportion of startups attracted funding in the range of KRW 500 million to KRW 1 billion (25.8%), followed by KRW 1 billion to 3 billion (22.6%), and KRW 100 million to 500 million (19.4%).
•�At the time of initial investment, the average value of startups was KRW 4.23871 billion. Overall, 41.9% of startups were valued at over KRW 5 billion, accounting for the largest proportion, followed by 25.8% of startups that were valued at less than KRW 500 million.
• A comparison with the results of the 2016 study shows that the average amount of funding startups attracted from VCs increased by KRW 5.59 million, from KRW 1.52828 billion in 2016 to about KRW 1.5336 billion in 2017. The number of firms receiving small investments under KRW 100 million and the number receiving large-scale investments over KRW 3 billion both increased.
• Compared to the results of the 2016 study, the average value of startups at the time of initial investment decreased by KRW 336.11 million, from KRW 4.57482 billion . The proportion of startups that were valued at less than KRW 500 million at the time they attracted their initial investment rose by 22.9%p.
Category
Category
Less than KRW 100 million
Between KRW 100 and 500 million
Between KRW 500 million and KRW 1 billion
Between KRW 1 and 3 billion
KRW 3 billion or more
Total
Less than KRW 500 million
Between KRW 1 and 3 billion
Between KRW 3 and 5 billion
KRW 5 billion or more
Total
5
6
8
7
5
31
8
6
4
13
31
16.1
19.4
25.8
22.6
16.1
100
25.8
19.4
12.9
41.9
100
Nationwide
Nationwide
No. of startups
No. of startups
%
%
Annual stats
Annual stats
5.714.3
25.7
40.0
14.316.1 19.425.8 22.6
16.1
Unit: %2016(n=35) 2017(n=31)
Less thanKRW
100 million
BetweenKRW 100
and500 million
BetweenKRW
500 millionand
KRW 1 billion
BetweenKRW 1
and 3 billion
KRW 3 billionor more
2.9 2.9
31.422.9
40.0
25.819.4
12.9
41.9
Unit: %2016(n=35) 2017(n=31)
Less thanKRW
500 million
BetweenKRW
500 millionand
KRW 1 billion
BetweenKRW 1
and 3 billion
BetweenKRW 3
and 5 billion
KRW 5 billionor more
Average KRW 1.53387 billion
Average KRW 4.23871 billion
CEOs’ Share Acquisition Rate
Current Difficulties Attracting Investment
• The difficulties faced by startups in attracting investment included: evaluation based on short-term (sales) results, difficulty making value estimations, and difficulty finding investors.
Annual stats
Investment decisions are based on short-term (sales) results1 Investments are made in the form of venture
capital loansOthers
Difficulty making value estimations2 Necessity of preparing for performance management
Difficulty finding investors3 Necessity of preparing for future growth
Difficulty waiting to attract investment4 Difficulty finding proper region for investment evaluation
Difficulty attracting the interest of investors5 Rapid exhaustion of funds
2
5
6
7
4
7-20%
21-40%
41-60%
61-80%
81-99%
100%
• Based on respondent startups’ answers to the question about what percentage of shares were acquired by their CEOs when attracting their initial investment, it was found that CEOs acquired an average of 53.2% of their companies’ shares.
• A comparison with the results of the 2016 study shows that the average proportion of shares acquired by startups’ CEOs decreased by 2.4%p, from 55.6% . Also, the proportion of CEOs who acquired between 41% and 60% of shares decreased by 26.0%p.
Category
-20%
21-40%
41-60%
61-80%
81-99%
100%
계
7
4
7
6
5
2
31
22.6
12.9
22.6
19.4
16.1
6.5
100
Nationwide
No. of startups %
8.617.1
48.6
11.4 11.42.9
22.612.9
22.6 19.4 16.16.5
Unit: %2016(n=35) 2017(n=31)
-20% 21-40% 41-60% 61-80% 81-99% 100%
Average 53.2%
Series A Round
Series A Round
Series A Round
Series A Round
100 Analysis of Startup Ecosystem Korea Startup Index 2017 101
Analysis of Korean Startups
Size of Follow-up Investment Attracted from Venture Capital Firms
Value Estimation at the Time of Investment Attraction
3
6
1
1
3Less thanKRW 100 million
BetweenKRW 100
and 500 million
BetweenKRW 500 millionand KRW 1 billion
BetweenKRW 1
and 3 billion
KRW 3 billionor more
8
1
5Less than
KRW 500 million
Between KRW100 and 500
million
KRW 500 millionor more
• Startups in the Series B or later rounds attracted an average of KRW 2.83923 billion from VCs, with the largest proportion of them attracting funding between KRW 1 billion and 3 billion (42.9%).
• The estimated value of startups was KRW 8.59893 billion, with 57.1% of startups being valued at over KRW 5 billion.
• The sample surveyed in 2016 consisted of five startups. The average follow-up investment amount decreased by KRW 1.09 billion, from KRW 3.93 billion in 2016 to KRW 2.84 billion in 2017.
* A sample size of less than 30 requires careful interpretation.
•�The sample surveyed in 2016 consisted of five startups. The average estimated value of startups at the time of investment attraction increased by KRW 2.48 billion, from KRW 6.12 billion .
* A sample size of less than 30 requires careful interpretation.
Category
Category
Less than KRW 100 million
Between KRW 100 and 500 million
Between KRW 500 million and KRW 1 billion
Less than KRW 500 million
Between KRW 100 and 500 million
KRW 500 million or more
Total
Between KRW 1 and 3 billion
KRW 3 billion or more
Total
3
1
1
6
3
14
5
1
8
14
21.4
7.1
7.1
42.9
21.4
100
35.7
7.1
57.1
100
Nationwide
Nationwide
No. of startups
No. of startups
%
%
Annual stats
Annual stats
39.3
28.4
Unit: %2016(n=5) 2017(n=14)
Average
61.2
86.0
Unit: %2016(n=5) 2017(n=14)
Average
Average KRW 2.83929 billion
Average KRW 8.59893 billion
CEOs’ Share Acquisition Rate
Current Difficulties Attracting Investment
• The difficulties faced by startups in attracting investment included: difficulty with everything, difficulty making value estimations, and lack of information on attracting investment.
Annual stats
Other “Difficulty with everything”
“Difficulty making value estimations”
“Lack of information on attracting investment”
“Difficulty attracting the interest of investors”
“Lack of interest in certain industries among investors”
“Difficulty finding investors”
“Inadequate investment in manufacturing”
“Insufficient funding power among Korean VCs”
“Difficulty proving profit model”
“Difficulty translating belief in technology into profits”
1
2
4
7-20%
41-60%
61-80%
100%
• The average share acquisition rate of CEOs of startups in the Series B or later rounds was 36.9%. For the largest proportion of startups (50%), the proportion of shares acquired by CEOs was less than 20%.
• Compared to the results of the 2016 study, the proportion of shares acquired by CEOs decreased by 3.7%p, from 40.6% .
* A sample size of less than 30 requires careful interpretation.
Category
-20%
41-60%
61-80%
100%
Total
7
4
2
1
14
50.0
28.6
14.3
7.1
100
NationwideNo. of
startups %40.6
36.9
Unit: %2016(n=5) 2017(n=14)
Average
Average 36.9%
Series B Round or Later
Series B Round or Later
Series B Round or later
Series B Round or Later
102 Analysis of Startup Ecosystem Korea Startup Index 2017 103
Analysis of Korean StartupsMarket Reach
35
122
143Development and
provision of services
Development of
physical products
Product development
and service provision
75
225Yes
No
44
26
76
791
2
3
4 or more
Startup Business Types
Launches of Products and Services
Products/Services language
English resources
• The largest number of startups were dedicated to the development and provision of services, accounting for 47.7%. While the startups that both developed physical products and provided services accounted for 40.7%, only 11.7% of startups focused solely on the development of physical products.
• Startups that had already launched their products or services accounted for 75.0% of all respondent startups, while 25.0% were in the process of preparing to launch.• When comparing companies in terms of product release rate by investment round,
the product release rate increased from the Pre-Seed to Series A round but dipped slightly in the Series B and later rounds.
• Most products and services were launched in one language, accounting for 35.1%, followed by two languages (33.8%) and four or more languages (19.6%).
• When comparing companies in terms of product or service languages by investment round, the number of languages rose from the Pre-Seed to Series A round but fell in the Series B and later rounds.
• A comparison with the results of the 2016 study shows that the proportion of the “development of physical products” increased by 6.6%p.
• A comparison with the results of the 2016 study reveals that the product and service release rate increased by 7.2%p in 2017.
• Compared to the results of the 2016 study, the number of companies providing their services in one language has decreased, while the number of those providing their services in two to four languages has increased.
Category
Category
Category
Development and
provision of services
Product development
and service provision
Development of
physical products
Total
Yes
No
Total
1
2
3
4 or more
Total
143
122
35
300
225
75
300
79
76
26
44
225
47.7
40.7
11.7
100
75.0
25.0
100
35.1
33.8
11.6
19.6
100
Nationwide
Nationwide
Nationwide
No. of startups
No. of startups
No. of startups%
%
%
Annual stats
Annual stats
Annual stats
53.6
41.4
5.1
47.740.7
11.7
Unit : %2016(n=295) 2017(n=300)
Development andprovision of services
Development ofphysical products
Product developmentand service provision
67.8
32.2
75.0
25.0
Unit : %2016(n=295) 2017(n=300)
Yes No
48.0
28.0
12.0 12.0
35.1 33.8
11.619.6
Unit : % 2016(n=200) 2017(n=225)
1 2 3 4 or more
Investment Round
Investment Round
Pre Seed
Pre Seed
Seed
Seed
Series A
Series A
Series B
Series B
69.9%
1
81.4%
2
90.3%
4 or more
85.7%
2
Rate of product release
(Multiple answers allowed)
184 162
92 71 68 68 4616 3 2 2
Company profile Homepage Proposal New about product
N/A(Not applicable)
Marketing sales plan
Press kit Products catalog
Products/Services
Video promotion
Mobile app
• The largest proportion of documents and information created by startups in English was company information, accounting for 25.8% of the total, followed by webpages (22.7%), proposals (12.8%), and product-related news (9.9%).
Category
No. of startups
%
Company profile
184
25.8
Homepage ProposalNew about
productN/A(Not
applicable)Marketing sales plan
Press kitProducts catalog
Products/Services
Video promotion
Mobile app Total
162
22.7
92
12.8
71
9.9
68
9.5
68
9.5
46
6.4
16
2.2
3
0.4
2
0.3
2
0.3
714
100
104 Analysis of Startup Ecosystem Korea Startup Index 2017 105
Analysis of Korean Startups
54
246Yes
No
39
43
53
111Less than 6 monthssince founding
Between6 months and 1 year
Between1 and 2 years
2 years or more
48
28
26
42
102Less than
100 million
Between KRW100 and 300 million
Between KRW300 and 500 million
KRW 1 billion or more
Between KRW500 million andKRW 1 billion
Sales Results
Time to First Sale
Amount of sales in the previous year
• Of the startups that responded, 82.0% had made actual sales.
• The majority of startups, accounting for 45.1%, had made their first sale within six months of founding, followed by between six months and one year (21.5%), between one and two years (17.5%), and two years or more (15.9%).• When comparing companies by investment round, a large proportion of companies
answered that it had taken them two years or more after reaching their Series B round to make their first sale.
• The largest proportion of startups made less than KRW 100 million in sales in the previous year (2016), accounting for 41.5%, followed by startups that made over KRW 1 billion (19.5%) and between KRW 100 and 300 million (17.1%).
• When comparing companies by investment round, the amount of sales in 2016 increased from the Pre-Seed to Series A round but fell in the Series B and later rounds.
• Compared to the results of the 2016 study, the proportion of startups earning sales revenue increased by 12.5%p in 2017.
• A comparison with the results of the 2016 study shows that the proportion of startups that made their first sale two years or more after founding increased by 9.6%p.
• A comparison of the sales figures by year shows that there was an increase of over KRW 1 billion from 2016 to 2017.
Category
Category
Category
Yes
No
Total
Less than 6 months since founding
Between 6 months and 1 year
Between 1 and 2 years
2 years or more
Total
Less than 100 million
Between KRW 100 and 300 million
Between KRW 300 and 500 million
Between KRW 500 million and KRW 1 billion
KRW 1 billion or more
Total
246
54
300
111
53
43
39
246
102
42
26
28
48
246
82.0
18.0
100
45.1
21.5
17.5
15.9
100
41.5
17.1
10.6
11.4
19.5
100
Nationwide
Nationwide
NationwideNo. of
startups
No. of startups
No. of startups%
%
%
Annual stats
Annual stats
Annual stats
69.5
30.5
82.0
18.0
Unit : %2016(n=295) 2017(n=300)
Yes No
51.2
24.418.0
6.3
45.1
21.5 17.5 15.9
Unit : %2016(n=205) 2017(n=246)
Less than 6 monthssince founding
2 years or moreBetween 6 monthsand 1 year
Between1 and 2 years
33.3
20.214.4 13.7
18.3
46.8
25.8
9.5 6.811.4 11.1
41.5
17.110.6
19.5
Unit : %2016(n=190)2015(n=540) 2017(n=246)
Less than100 million
BetweenKRW 100 and300 million
BetweenKRW 300 and500 million
BetweenKRW 500 millionand KRW 1 billion
KRW1 billionor more
Investment Round
Investment Round
Pre Seed
Pre Seed
Seed
Seed
Series A
Series A
Series B
Series B
Less than 6 months
KRW 740.855 million
Less than 6 months
KRW 418.312 million
Less than 6 months
KRW 2.04496 billion
Less than 6 months,
2 years or more
KRW 462.083 million
Comparison of patents with the previous year
•�Compared to the results of the 2016 study, the number of patents registered increased by 1.9, from 0.9 in 2016 (2015) to 2.8 in 2017. Also, the number of patent applications increased by 2.0.
23 32
9 3
233
40 76
19 16
149
Unit : %2015
2016
1 2-5 6-9 10 0
44
78
13 13
152
32
79
19 23
147
Unit : %2015
2016
1 2-5 6-9 10 0
Category
0
1
2-5
6-9
10 or more
Total
Average
233
23
32
9
3
300
0.9 2.8 1.0 3.0
77.7
7.7
10.7
3.0
1.0
100
149
40
76
19
16
300
49.7
13.3
25.3
6.3
5.3
100
152
44
78
13
13
300
50.7
14.7
26.0
4.3
4.3
100
147
32
79
19
23
300
49.0
10.7
26.3
6.3
7.7
100
Patent registration Patent application
2015
No. of startups % No. of
startups % No. of startups % No. of
startups %
20152016 2016
Patent registration Patent application
106 Analysis of Startup Ecosystem Korea Startup Index 2017 107
Analysis of Korean Startups
Patent Designs Rights Retained
Trademark rights
Utility models
•�An analysis of the patents held by startups reveals that startups had an average of 2.2 patents registered in Korea, 0.7 patents registered overseas, 2.1 patent applications filed in Korea, and 0.9 patent applications filed overseas. Companies that had no patents registered in Korea accounted for 50.7%; no patents registered overseas, for 85.7%; no patent applications filed in Korea, for 52.3%; and no patent applications filed overseas, for 77.7%.
•�An analysis of startups in terms of intellectual property rights for product designs shows that startups held the intellectual property rights for an average of 0.4 product designs in Korea and 0.1 product designs overseas. Companies that had no intellectual property rights for product designs in Korea accounted for 85.0%, while those with no intellectual property rights for product designs overseas accounted for 96.0%.
•�An analysis of startups in terms of trademarks reveals that startups had an average of 1.1 domestic trademarks and 0.3 overseas trademarks. Companies that had no domestic trademarks accounted for 60.0%, while those that had no overseas trademarks accounted for 86.0%.
•�An analysis of startups in terms of utility models reveals that startups had an average of 2.2 domestic utility models and 0.7 overseas utility models. Companies that had no domestic utility models accounted for 93.3%, while those that had no overseas utility models accounted for 97.3%.
Category
Category
Category
0
1
2-5
6-9
10 or more
Total
Average
0
1
2-5
6-9
10 or more
Total
Average
0
1
2-5
6-9
10 or more
Total
Average
152
44
78
13
13
300
255
22
20
2
1
300
180
50
56
10
4
300
2.2
0.4
1.1
0.7 2.1
0.1
0.3
0.9
50.7
14.7
26.0
4.3
4.3
100
257
19
19
1
4
300
85.7
6.3
6.3
0.3
1.3
100
85.0
7.3
6.7
0.7
0.3
100
60.0
16.7
18.7
3.3
1.3
100
157
50
63
15
15
300
288
7
5
-
-
300
258
18
22
2
-
300
52.3
16.7
21.0
5.0
5.0
100
233
21
35
5
6
300
77.7
7.0
11.7
1.7
2.0
100
96.0
2.3
1.7
-
-
100
86.0
6.0
7.3
0.7
-
100
Patent registration
Domesic
Domesic
Patent application
Overseas
Overseas
Domesic
No. of startups
No. of startups
No. of startups
% No. of startups %
%
%
No. of startups
No. of startups
No. of startups
% No. of startups %
%
%
DomesicOverseas Overseas
Category
0
1
2-5
10 or more
Total
Average
280
15
4
1
300
2.2 0.7
292
6
1
1
300
93.3
5.0
1.3
0.3
100
97.3
2.0
0.3
0.3
100
Domesic Overseas
No. of startups No. of startups% %
6 1 1
292
1 2-5 10 or more 0
15 4 11 2-5 10 or more 0
280
4478
13 13
152
1 2-5 6-9 10 or more 0
22 202 1
255
1 2-5 6-9 10 or more 0
50 5610 4
180
1 2-5 6-9 10 or more 0
Patent registration(Domesic)
Designs(Domestic)
Trademark rights(Domestic)
19 19 1 4
257
1 2-5 6-9 10 or more 0
Patent registration(Overseas)
50 6315 15
157
1 2-5 6-9 10 or more 0
7 50 0
288
1 2-5 6-9 10 or more 0
18 222 0
258
1 2-5 6-9 10 or more 0
Patent application(Domesic)
Designs(Oversea)
Trademark rights(Overseas)
21 35 5 6
233
1 2-5 6-9 10 or more 0
Patent application(Overseas)
Utility models(Overseas)Utility models(Domestic)
108 Analysis of Startup Ecosystem Korea Startup Index 2017 109
Analysis of Korean Startups
23.7 23.1
2.8 6.1
41.4
13.325.3
6.3 5.3
49.7
Unit : %2016(n=295) 2017(n=300)
1 2-5 6-9 10 or more 0
2012 2013 20143 Monthaverage
Seoul Gyeonggi Province Total average
14.4% 9.6%16.3%16.8%
7.3%13.8%
3.6%
6.5% 1.7%9.2%
7.8%10.6%
3.1%
15.5%
8.1%
-1.8%3.5%
2.9%
9.8%
16.0%13.7%
3.7%11.6% 8.2%
2012 2013 20143 Monthaverage
Seoul Gyeonggi Province Total average
5.4 5.1 1.4 0.7
86.4
6.3 8 1 0.7
84.0
2016(n=295) 2017(n=300) Unit : %
1 2-5 6-9 10 or more 0
5.4 1.7
92.9
4 3 0.3
92.7
2016(n=295) 2017(n=300) Unit : %
1 2-5 6-9 10 or more 0
12.1% 5.8% 7.8%1.3%
-7.7% -7.0%
-20.8%-15.7%
-18.1%
-2.5%-5.9% -5.8%
2012 2013 20143 Monthaverage
Seoul Gyeonggi Province Total average
8.5% 6.0% 10.7%
27.5%
32.4%30.7%
-0.4% 5.2% 0.3%
11.8%14.5%
13.9%
2012 2013 20143 Monthaverage
Seoul Gyeonggi Province Total average
22.0 26.4
1.7 2.0
48.1
12.321.3
5 2.7
58.7
2016(n=295) 2017(n=300) Unit : %
1 2-5 6-9 10 or more 0
Intellectual Property Rights Retained
Patents
Patents
Design
Design
Utility models
Utility models
Trademark rights
Trademark rights
2.9
2.8
Average in 2016
Average in 2017
10.6%
200.0%
Growth Rate of Startups in 2017
Average Growth Rate of Startups over Three Years
8.2%
66.7%
Growth Rate of Startups in 2017
Average Growth Rate of Startups over Three Years
-5.8%
200.0%
Growth Rate of Startups in 2017
Average Growth Rate of Startups over Three Years
0.3
0.5
Average in 2016
Average in 2017
0.1
0.3
Average in 2016
Average in 2017
13.9%
0.0%
Growth Rate of Startups in 2017
Average Growth Rate of Startups over Three Years
1.4
1.4
Average in 2016
Average in 2017
Annual stats
High growth rate
High growth rate
High growth rate
Unit : Number of intellectual property rights
Annual stats
Annual stats
Annual stats
Comparison of the Growth Rate of Registered Intellectual Property Rights
•�Compared to the statistics from the Korean Intellectual Property Office (for 2012 to 2014), the registered patent, registered utility model, and registered product design growth rates were found to have increased.
Category
Seoul 25,150 29,369 28,315 1,636 1,657 1,312 15,537 15,251 16,741 31,697 40,398 40,225
Gyeonggi Province 24,761 26,558 28,275 2,066 1,907 1,607 13,923 14,407 16,705 12,418 16,436 17,294
Total 84,061 95,667 97,294 6,151 5,718 4,682 42,628 43,866 49,856 61,505 80,372 80,645
Patents Utility models Design Trademark rights
2013 2013 2013 20132014 2014 2014 20142012 2012 2012 2012
*source Korean Intellectual Property Office
110 Analysis of Startup Ecosystem Korea Startup Index 2017 111
Analysis of Korean Startups
Startups with Intellectual Property Rights by Investment Round
2015 Patent registration (Total) 0.6 1.2 0.7 4.0
2016 Patent registration (Domestic) 1.3 2.8 4.7 5.6
2016 Patent registration (Overseas) 0.2 1.0 3.0 0.6
2015 Patent application (Total) 0.5 1.4 1.1 5.0
2016 Patent application (Domestic) 1.3 2.6 3.3 7.6
2016 Patent application (Overseas) 0.4 1.4 1.8 2.6
2016 Trademark rights (Domestic) 0.7 1.4 1.9 2.9
2016 Trademark rights (Overseas) 0.2 0.5 0.6 1.1
Category Pre Seed Seed Series A Series B
Plan for overseas expansion notmentioned in
investment proposal
Plan for overseasexpansion mentionedin investment proposal
but not prepared
Currently preparing foroverseas expansion
Launchedproducts/services inoverseas market and
reported sale
Launchedproducts/services inoverseas market butcurrently lacks sales
63
24
110
59
44
Overseas Expansion
•An analysis of overseas expansion by Korean startups revealed that 29.0% of startups have advanced into overseas markets, and 21.0% have achieved sales.
• When comparing companies by investment round, the number of intellectual property rights held by startups increased from the Pre-Seed to the Series B and later rounds.
• An annual comparison of companies in terms of global market entry shows that the proportion of startups that have successfully completed their entry into the global market has increased remarkably.
Category
Plan for overseas expansion not mentioned in investment
proposal
Plan for overseas expansion mentioned in investment proposal but not prepared
Currently preparing for overseas expansion
Launched products/services in overseas market but
currently lacks sales
Launched products/services in overseas market and
reported sale
Total
44
59
110
24
63
300
14.7
19.7
36.7
8.0
21.0
100
Nationwide
No. of startups %
Annual stats
14.7
62.8
22.521.4
66.1
12.5
29.0
56.4
14.7
Unit : %2016(n=295)2015(n=707) 2017(n=300)
Launched products/services inoverseas market
Preparing foroverseas expansion
No plan
Target and Preferred Countries for Overseas Expansion
•�Among the startups preparing to expand overseas, the majority expressed a preference for expansion into North America (25.3%), followed by China (19.4%) and Southeast Asia (18.9%). On the other hand, North America was the most popular target country among startups that had already expanded overseas, with 25.7% of startups having established a presence in the North American market, followed by the Japanese market (16.8%) and Southeast Asia market (17.3%).
•�Other target regions and countries included the Middle East, Taiwan, South America, and Uzbekistan.
• The results of the 2015 study showed that startups expressed a preference for expansion into North America, including the United States and Canada, as well as China and Southeast Asia, while the 2016 study showed that startups expressed a greater preference for China, North America, and Japan. This shows that the desire of startups to expand into North America and China has remained strong.
Category
98 25.3 49 25.7 China 75 19.4 26 13.6
Southeast Asia 73 18.9 32 16.8
Japan 59 15.2 33 17.3 Europe 50 12.9 23 12.0 India 14 3.6 10 5.2 Southwest Asia 11 2.8 9 4.7 Others 7 1.8 9 4.7 Total 387 100 191 100
North America (U.S. and Canada)
Preferred country for overseas expansion
Country to which startups have already expanded
No. of startups No. of startups% %
Difficulties in overseas expansion
• The greatest difficulty faced by startups in expanding overseas was found to be securing sufficient funding, followed by the difficulty finding professional personnel and the language barrier.
“Difficulty securing sufficient funding”1 “Difficulty creating networks”6“Difficulty finding professional personnel”2 “Difficulty finding partners”7“Language barrier”3 “Difficulty finding new distribution channels,
customers, and markets”8“Lack of information on the local region and market”4 “Difficulty finding buyers”9“Marketing difficulties”5 “Difficulty receiving certification for products”10
2015
2016
2017
(Multiple answers allowed)
North America (U.S. and Canada)
North America (U.S. and Canada)
North America (U.S. and Canada)
China
China
China
Japan
Southeast Asia
Southeast Asia
112 Analysis of Startup Ecosystem Korea Startup Index 2017 113
Analysis of Korean Startups
No one
Onlyfounder
Less than5 people
5 peopleor more 12
129
46
113
67
40
59
6728.8%
25.3%
17.2%
28.8%
Less than1-10 hours
Between10 and 20 hours
Between20 and 30 hours
30 hoursor more
67
23377.7%
22.3%
Yes
No
YouTube
Google Adwords
Google Plus
Tencent Weibo
Others
N/A(Not applicable) 70389
1736
4761
96108
195
4
2
4
9
11
19
22
38
78
113Technical skills
Expertise
Network
Human resources
Design
Global experience
Brand
Funds-flow
Others
Products/Servicesplanning ability
Employees with two or more years of overseas experience Activities to Reach Target Customers
Social media sites used by startups for marketing and promotional purposes
Sales strategy and strength
• Startups that employed workers with two or more years of experience overseas accounted for 62.3% of the total, with the largest proportion of those having less than five such employees (43.0%). Startups no employees with overseas experience accounted for 37.7%.• When comparing companies by investment round, the Pre-Seed round had the largest number of startups with no employees with two or more years of experience overseas.
• Startups that were conducting activities to reach their target customers accounted for 77.7%. Among them, 28.8% spent either a relatively short amount of time, from 1 to 10 hours, on marketing or spent over 30 hours focusing on related activities. By type of activity, startups focused most on their website (28.5%), followed by viral marketing (15.8%), exhibitions and expos (14.0%), and conferences and other networking events (8.9%).
• When comparing companies by investment round, startups in Pre-Seed round spent an average of 20.6 hours; Seed round startups spent 17.5 hours; Series A startups spent 35.1 hours; startups in Series B and later rounds spent 23.4 hours.
•�An examination of the social media sites used by startups for marketing and promotion purposes shows that the largest proportion of startups used Facebook, accounting for 28.5%, followed by YouTube (15.8%), Instagram (14.0%), and LinkedIn (8.9%). Startups that did not use social media at all accounted for 10.2%.
•�When asked about the main sales strategies or advantages of their products and services, the largest number of startups answered that their technical skills were their greatest strength (37.7%), followed by product/service planning ability (26.0%) and expertise (12.7%).
Investment Round
Investment Round
Pre Seed
Pre Seed
Seed
Seed
Series A
Series A
Series B
Series B
No one
20.6
Only founder
17.5
Less than 5 people
35.1
5 people or more
23.4
Category
Category
Category
Category
No one
Only founder
Less than 5 people
5 people or more
Total
YouTube
Google Adwords
Google Plus
Tencent Weibo
Others
N/A(Not applicable)
Total
Technical skills
Products/Services planning ability
Expertise
Network
Human resources
Design
Global experience
Brand
Funds-flow
Others
Total
Homepage
Viral marketing
Exhibition/Exposition
Conference
News article
Video(Youtube), Podcast
Portal site
Event
ebook, Newsletter
Public beneficial activities
Others
Total
113
46
129
12
300
195
108
96
61
47
36
17
9
8
3
70
684
113
78
38
22
19
11
9
4
2
4
300
195
108
96
61
47
36
17
9
8
3
70
864
37.7
15.3
43.0
4.0
100
28.5
15.8
14.0
8.9
6.9
5.3
2.5
1.3
1.2
1.3
10.2
100
37.7
26.0
12.7
7.3
6.3
3.7
3.0
1.3
0.7
1.3
100
28.5
15.8
14.0
8.9
6.9
5.3
2.5
1.3
1.2
0.3
10.2
100
Nationwide
Nationwide
Nationwide
Nationwide
No. of startups
No. of startups
No. of startups
No. of startups%
%
%
%
Naver, Pinterest, Blog, Snapchat, TumblrOthers
Utility models(Overseas)Utility models(Domestic)
114 Analysis of Startup Ecosystem Korea Startup Index 2017 115
Analysis of Korean Startups
230
70
Yes No
Awareness of Competitors
•�To the question about their awareness of potential competition in the markets they wish to enter, 76.7% of startups answered that they are aware of their potential competition.
Category
Yes
No
Total
230
70
30
76.7
23.3
100
Nationwide
No. of startups %
Supporter & Policy Maker insights
Excellent
Inadequate
178
122
Centralgovernment
VC firms andother investors
Localgovernments
Conglomerates
Others
190
52
23
7
28
Assessment of the Korean Startup Environment
Stakeholders Making Large Contributions to the Fostering of Startups
• When asked for their opinion on the startup environment in Korea, 59.3% of respondent startups answered “excellent.”
• Of the respondent startups, 63.3% answered that the central government was the stakeholder that has made the largest contribution to the fostering of startups, followed by VC firms and other investors (17.3%).
• A comparison with the results of the 2016 study shows that the assessment of the Korean startup environment was unchanged.
• Compared to the results of the 2016 study, the proportion of startups that positively assessed the contribution of the central government to fostering startups increased by 10.1%p, while those that positively assessed the contribution of VCs and other investors decreased by 15.9%p. The proportion of startups that positively assessed the contribution of local governments rose by 4.0%p.
Category
Category
Excellent
Inadequate
Total
Central government
VC firms and other investors
Local governments
Conglomerates
Others
Total
178
122
300
190
52
23
7
28
300
59.3
40.7
100.0
63.3
17.3
7.7
2.3
9.3
100
Nationwide
Nationwide
No. of startups
No. of startups
%
%
Annual stats
Annual stats
59.3
40.7
59.3
40.7
Unit : %2016(n=295) 2017(n=300)
Excellent Inadequate
53.2
33.2
3.7 1.48.5
63.3
17.37.7 2.3
9.3
Unit : %2016(n=295) 2017(n=300)
Centralgovernment
Localgovernments
Conglomerates OthersVC firms andother investors
116 Analysis of Startup Ecosystem Korea Startup Index 2017 117
Analysis of Korean Startups
Assessment of the Central Government’s and Local Governments’ Support Policies for Korean Startups
*Satisfied(Very satisfied + Satisfied)
• Regarding the startup support policies implemented by the central government (Ministry of Science, ICT and Future Planning, Small and Medium Business Association, etc.), 37.0% of startups viewed them positively, while 34.5% answered positively for the policies implemented by local governments.• When comparing companies by investment round, the majority of startups that were satisfied with the central government’s support policy were in the Series B or later rounds,
while the majority of those satisfied with local governments’ support policies were in the Seed round.
2227
134
78
18 26
41
122
95
16
Very satisfied Satisfied Neutral Very dissatisfiedDissatisfied
Central government Local governmentsCategory
Very satisfied
Satisfied
Neutral
Dissatisfied
Very dissatisfied
Total
Central government Local governments
16
95
122
41
26
300
No. of startups
18
78
134
27
22
279
No. of startups
5.3
31.7
40.7
13.7
8.7
100
%
6.5
28.0
48.0
9.7
7.9
100
%
Investment Round
Pre Seed Seed Series A Series BCentral
governmentCentral
governmentCentral
governmentCentral
government
31.1% 49.2% 38.7% 64.2%
Local governments
Local governments
Local governments
Local governments
26.0% 49.2% 32.2% 32.0%
Greatest Advantages of Korea’s Startup Environment
•�According to startups, the greatest advantages of Korea’s startup environment are: political framework (17.8%), cost structures (17.2%), culture of entrepreneurship (16.7%) and access to community (16.7%).
•�While the 2016 study revealed that startups pointed to the cost structure and access to startup communities as the greatest advantages of Korea’s startup environment, the 2017 study shows that startups felt the government’s support policy, such as the tax system, and cost structure were the greatest advantages.
Category Category
Political Framework
Cost Structures
Access to Community
Culture of Entrepreneurship
Access to Knowledge
Access to Human Capital
Access to Customers
Access to Financial Capital
Other
Total
Political Framework
Cost Structures
Access to Community
Culture of Entrepreneurship
Access to Knowledge
Access to Human Capital
Access to Customers
Access to Financial Capital
Other
17.8
17.2
16.7
16.7
9.9
6.9
5.4
4.1
5.3
100
1
2
3
3
5
6
7
8
9
160
155
150
150
89
62
49
37
48
900
4
1
2
3
6
5
7
8
9
Nationwide Rank
No. of startups 2016 2017%
(Multiple answers allowed) (Multiple answers allowed)(Multiple answers allowed)
Annual stats
Factors Obstructing Startup Growth and Vitalization
•�When asked to select the factor that most hinders the growth and vitalization of startups, startups pointed to: difficulty procuring capital from investors, such as VC firms and angel investors (33.3%), too much focus on particular areas such as mobile among startups (16.3%), difficulty finding human capital for startups(13.0%), and lack of social encouragement for startups and tolerance of failure (13.0%).
•�The largest proportion of startups found the difficulty involved in procuring capital from investors to be the most significant factor hindering their growth (23.1%), while relatively few found it difficult to secure human capital.
•�When asked to select the top three factors that hinder the growth and vitalization of startups, startups pointed to: difficulty procuring capital from investors, such as VC firms and angel investors, which was chosen by the majority of startups, at 19.7%, followed by lack of social encouragement for startups and tolerance of failure (16.9%), difficulty finding human capital for startups (15.8%), and lack of markets for products and services launched by startups (12.0%).
•�While the results of the 2016 study showed that startups pointed to the lack of social encouragement for startups and low tolerance for failure as the biggest factors obstructing the growth and vitalization of startups, the results of the 2017 study revealed that the difficulty of procuring capital from investors was the biggest factor (18%).
Category
Category
Category
Category
Difficulty procuring capital from investors, such as VC firms and angel investors
Too much focus on particular areas such as mobile among startups
Difficulty finding human capital for startups
Lack of social encouragement for startups and tolerance of failure
Lack of markets for products and services launched by startups
Lack of successful exits and opportunities to recover investments
Lack of business capacity among startups
Lack of entrepreneurship among startups (get-rich-quick schemes)
Lack of mentoring and professional consulting services for startups
Total
Difficulty procuring capital from investors, such as VC firms and angel investors
Too much focus on particular areas such as mobile among startups
Difficulty finding human capital for startups
Lack of social encouragement for startups and tolerance of failure
Lack of markets for products and services launched by startups
Lack of successful exits and opportunities to recover investments
Lack of business capacity among startups
Lack of entrepreneurship among startups (get-rich-quick schemes)
Lack of mentoring and professional consulting services for startups
Difficulty procuring capital from investors, such as VC firms and angel investors
Too much focus on particular areas such as mobile among startups
Difficulty finding human capital for startups
Lack of social encouragement for startups and tolerance of failure
Lack of markets for products and services launched by startups
Lack of successful exits and opportunities to recover investments
Lack of business capacity among startups
Lack of entrepreneurship among startups (get-rich-quick schemes)
Lack of mentoring and professional consulting services for startups
Total
Difficulty procuring capital from investors, such as VC firms and angel investors
Lack of social encouragement for startups and tolerance of failure
Difficulty finding human capital for startups
Lack of markets for products and services launched by startups
Lack of successful exits and opportunities to recover investments
Too much focus on particular areas such as mobile among startups
Lack of business capacity among startups
Lack of mentoring and professional consulting services for startups
Lack of entrepreneurship among startups (get-rich-quick schemes)
33.316.313.013.08.35.34.33.33.0100
1
2
3
3
5
6
7
8
9
19.716.915.812.09.89.67.04.64.6100
1
2
3
3
5
6
7
8
9
100493939251613109
300
1
5
2
3
6
4
7
8
9
1751501401068785624141
887
2
1
3
6
4
5
7
8
9
Nationwide Nationwide
No. of startups
No. of startups% %
Top choice
Top choice
Total
Total
(Multiple answers allowed)
Annual stats
Rank Rank
2016 20162017 2017
118 Analysis of Startup Ecosystem Korea Startup Index 2017 119
Analysis of Korean Startups
Category
Internet/mobile business areas
High growth potential regardless of investment area, investment performance, or sales results
Innovative business (profit) model
Technology that is difficult to imitate
High growth rate
Achievement of a certain level of sales or higher
No significant difference between IT startups and other startups
Attraction of a certain level of investment or higher
Total
22.2
18.6
14.5
14.0
10.9
8.2
6.1
5.6
100
135
113
88
85
66
50
37
34
608
Nationwide
No. of startups %
(Multiple answers allowed)
(Multiple answers allowed)
Characteristics of Startups
Key Capabilities Necessary for Startup Founders
•�According to the respondent startups, the major characteristics of startups are: Internet/mobile business area (22.2%), future growth potential (18.6%), innovative business (profit) model (14.5%) and technology that is difficult to imitate(14.0%). Meanwhile, only 6.1% answered that there were no significant differences between IT startups and regular startups, showing that the majority of respondents regarded IT startups as quite different from other startups.
•�In order of priority, startups pointed to business planning (marketing) as the most important capability for startup founders (28.7%), followed by technological capability (27.0%), entrepreneurship (14.5%), ability to procure funding (14.3%) and global capabilities (7.2%).
•�A comparison with the results of the 2016 study shows that the largest proportion of startups were still found in the Internet/mobile industry. Also, the proportions of startups with high future growth potential and technology that is difficult to imitate increased in 2017.
•�A comparison with the results of the 2016 study shows that startups’ business planning (marketing) capability, technological capability, and the ability to procure funding have all increased, while entrepreneurship has decreased slightly.
Annual stats
Annual stats
21.7
14.9
15.3
12.0
13.9
8.4
3.6 10
.2
22.2
18.6
14.5
14.0
10.9
8.2
6.1
5.6
Unit : %2016(n=295) 2017(n=300)
Internet/mobilebusinessareas
Technologythat is
difficult toimitate
Innovativebusiness(profit)model
Achievementof a certainlevel ofsales orhigher
NosignificantdifferencebetweenIT startupsand otherstartups
Achievementof a certainlevel ofsales orhigher
Futuregrowthpotential
Highgrowthrate
24.8
22.1
22.8
12.3
5.4
3.4
3.7
1.0 4.
5
28.7
27.0
14.5
14.3
7.2
3.5
2.8
1.0
1.0
Unit : %2016(n=295) 2017(n=300)
Business planning
(marketing) capability
Technological capability
Entrepreneurship
Ability to procure
external funding
Global capabilities
Excellent educational
background Ot
hers
Ability to procure
sufficient equity capital
Experience in startups,
venture-backed companies,
and other related areas
Category
Business planning (marketing) capability
Technological capability
Entrepreneurship
Ability to procure external funding
Global capabilities
Ability to procure sufficient equity capital
Experience in startups, venture-backed companies, and other related areas
Excellent educational background
Others
Total
28.727.014.514.37.23.52.81.01.0100
172162878643211766
600
Nationwide
No. of startups %
Conference/Seminar/Forum
Networking (Party)
Exhibition/Exposition
Class
Demoday
Business fair
Workshop/Camp
Contest
N/A (Not applicable)
Others 2
39
60
77
88
103107
132
136
192
Startup programs and events
•�A closer examination of the support programs and events held for startups shows that the largest proportion of startups participated in conferences, seminars, and forums, accounting for 20.5%, followed by networking events (parties) (14.5%), exhibitions and expos (14.1%), classes (11.4%), and demo day events (11.0%). Startups that did not participate in any such programs or events accounted for 4.2%, showing that the overwhelming majority of startups were actively taking part in support programs and events.
Category
Conference/Seminar/Forum
Networking (Party)
Exhibition/Exposition
Class
Demoday
Business fair
Workshop/Camp
Contest
N/A (Not applicable)
Others
Total
192
136
132
107
103
88
77
60
39
2
937
20.5
14.5
14.1
11.4
11.0
9.4
8.2
6.4
4.2
0.2
100
Nationwide
No. of startups %
(Multiple answers allowed)
Korea Startup Index 2017 123
Characteristics of Korean Startups
Characteristics of Korean Startups
Phases of Startup Growth
Global Comparison
Comparison of Concentration
Analysis of Domestic Startup Activities
Appendix. Information on Startups that Participated in the Survey
Phases of Startup Growth
•�In terms of the average age of startups, based on the founding year, Pre-seed Round funding were raised
at 3.5 years; Seed, at 3.3 years; Series A, at four years; and Series B and later, at 4.9 years.
•�The average number of employees grew throughout the investment stages, from 7.2 to 7.9, 13.8, and
19.6 employees. The average number of tech personnel also grew, from 4.2 to 4.5, 6.6, and 12.4, and
the number of female personnel, from 1.7 to 1.8, 3.4, and 3.7.
•�The number of investment advisers were the largest in the Seed Round, with an average of 2.5 per
startup, and decreased continuously in the later stages.
•�The amount of equity capital secured by startups showed an increasing trend, except for a slight decrease
among those in the Series B or later rounds. In terms of sales, Series A startups recorded the highest
sales, at KRW 2.04496 billion, while Seed round startups posted the lowest sales, at KRW 408.31 million.
Pre-Seed startups recorded KRW 740.86 million in sales, while Series B or later startups recorded KRW
462.08 million, showing that investment rounds and sales figures are not necessarily directly proportional.
•�The percentage of startups that have expanded overseas was 11.5%, 15.3%, 48.4%, and 64.3% by
investment stage, confirming a correlation between investment stages and overseas expansion.
Startups by Final Investment Round
Number of Companies by Final Investment Round
Pre Seed Seed Series A Series B
196
5931
14
Unit : companies
Category Pre Seed Seed Series A Series B
*A sample size of less than 30 requires careful interpretation.
Years since founding 3.5 3.3 4.0 4.9
Number of employees 7.2 7.9 13.8 19.6
Equity capital KRW 132.41 million KRW 215.01 million KRW 296.48 million KRW 296.35 million
Number of tech personnel 4.2 4.5 6.6 12.4
Number of female personnel 1.7 1.8 3.4 3.7
Number of investment advisors 0.3 2.5 1.4 0.9
Number of foreign employees 0.3 0.5 0.7 0.4
Sales 81.6% 78.0% 90.3% 85.7%
Sales amount KRW 740.86 million KRW 418.31 million KRW 2.04496 billion KRW 462.08 million
Overseas Expansion 11.5% 15.3% 48.4% 64.3%
124 Analysis of Startup Ecosystem Korea Startup Index 2017 125
Characteristics of Korean StartupsGlobal Comparison
Compass (https://www.compass.co), a startup information analysis firm, compiles and releases the results of quantitative and
qualitative analyses of the global startup ecosystem and development trends. It also carried out the Startup Genome Project,
which analyzed the factors of startups’ success. Every year, the company releases the Global Startup Ecosystem Ranking,
in which it compares and analyzes the performance of startups in different cities based on categories such as Ecosystem
Demographics, Ecosystem Performance, Funding, Market Reach, Talent, Startup Experience Index, Demographics of Founders,
and Resource Attraction. The recently released Global Startup Ecosystem Ranking 2017 ranks the top 20 cities based on an
assessment of investment trends and startup growth. In addition to information on these top 20 cities, the report also provides
data on 25 other cities, including Seoul.
2017 Global Startup Ecosystem Reporthttps://startupgenome.com/
2017 Global Startup Ecosystem Ranking
Ecosystem Demographics
Talent
Startup Experience Index
Founders Demographics
Resource Attraction
Ecosystem Performance
Funding
Market Reach
Category Index
Metropolitan GDP
Metropolitan Population
Ecosystem Value
Startup Output
Growth Index
Early-Stage Funding per Startup
Early-Stage Funding Growth Index
Experienced VC Firm Index
Foreign Customers
Global Connctions
Experienced Software Engineers
Experienced Growth Employees
Visa Success Rate
Software Engineer Salary
-
Women Founders
Immigrant Founders
Entrepreneurs
Startups
Performance
Funding
Market Reach
Talent
Startup Experience
Silicon Valley1
1
1
2
1
1 New York3
2
3
7
4
2 London4
4
2
10
5
3 Beijing2
5
19
8
2
4 Boston6
6
12
4
3
5
Performance
Funding
Market Reach
Talent
Startup Experience
Tel Aviv9
8
4
11
7
6 Berlin7
9
6
5
10
7 Shanghai8
3
10
9
13
8 Los Angeles5
7
15
14
11
9 Seattle12
13
14
3
6
10
Performance
Funding
Market Reach
Talent
Startup Experience
Paris14
14
9
16
8
11 Singapore16
16
11
1
20
12 Austin15
11
18
6
9
13 Stockholm17
20
8
18
12
14 Vancouver19
19
7
15
15
15
Performance
Funding
Market Reach
Talent
Startup Experience
Toronto18
12
5
20
18
16 Sydney20
10
13
12
17
17 Cicago13
15
20
13
14
18 Amsterdam10
17
17
19
16
19 Bangalore11
18
16
17
19
20
126 Analysis of Startup Ecosystem Korea Startup Index 2017 127
Characteristics of Korean Startups
Seoul Index Ecosystem Demographics
Ecosystem Performance
GDP
Ecosystem Value(Startup economic value)
Growth Index(Active technical startups)
Population
Number of Startups
$153 $264
$542 $619
$688 Seoul
Silicon Valley
London
Singapore
Tel Aviv
$2.4 $11
$22 $44
$264 Silicon Valley
London
Tel Aviv
Singapore
Seoul
4.24.54.5
4.64.8London
Singapore
Seoul
Tel Aviv
Silicon Valley
*Seoul : not comparable
3.75.5
7.6 14
Seoul
Silicon Valley
London
Singapore
Tel Aviv
13-164.3-5.9
2.2-3.71.6-2.4
1.5-3.4
Silicon Valley
London
Seoul
Tel Aviv
Singapore
Unit : $100million
Unit : $100million
Unit : million
Unit : 1,000
128 Analysis of Startup Ecosystem Korea Startup Index 2017 129
Characteristics of Korean Startups
Funding Talent
Average Initial Investment (amount) Experienced software tech employees
Venture Capital Experience Index
Software tech employees annual salaryVisa success rate
Initial Stage Investment Growth Index Experienced Growth Employeese
$174 $276
$451 $509
$762 Silicon Valley
Tel Aviv
London
Singapore
Seoul 68%74%
79%80%
87%Silicon Valley
Singapore
London
Tel Aviv
Seoul
8.28.4
9.010.1
10.9Silicon Valley
London
Tel Aviv
Seoul
Singapore
$35 $38
$52 $63
$112 Silicon Valley
Tel Aviv
London
Seoul
Singapore25%25%
27%44%
58%Silicon Valley
London
Tel Aviv
Seoul
Singapore
4.44.64.6
4.75.2Seoul
Tel Aviv
Singapore
London
Silicon Valley59%
74%
76%76%
80%Seoul
Tel Aviv
Singapore
London
Silicon Valley
Unit : $1,000
Market Reach
Startup Experience IndexForeign customer Global connection
14%25%
30%33%
45%Tel Aviv
London
Silicon Valley
Singapore
Seoul
4.14.8
6.16.7
7.4Silicon Valley
London
Tel Aviv
Singapore
Seoul
2.110.8
1111.4
12.9Tel Aviv
Singapore
Silicon Valley
London
Seoul
130 Analysis of Startup Ecosystem Korea Startup Index 2017 131
Characteristics of Korean Startups
Founders demographicsThe locations of 467 accelerators, VCs, and government institutions (departments) in Seoul and Gyeonggi Province were analyzed.
Female founder Foreign founder
8%12%
15%16%16%Seoul
Silicon Valley
London
Singapore
Tel Aviv 12%16%
35%42%
46%Silicon Valley
London
Singapore
Tel Aviv
Seoul
Resource Attraction
Founder Startup
351463
7311,079
2,896Silicon Valley
London
Seoul
Singapore
Tel Aviv
1540
2572,049Tel Aviv
Singapore
Silicon Valley
London
Seoul
Density analysis
Venture Capital
Accelerator
Incubator
Yeoncheon-gun
Pocheon-si
Dongducheon-si
Ganghwa-gun
Ongjin-gun
Jung-guDong-gu
Seo-guBupyeong-gu
Anyang-si
Gyeyang-guBucheon-si
Nam-gu Namdong-gu
Yeonsu-gu
Ansan-si
Suwon-si
Pyeongtaek-si
Anseong-si
Hwaseong-si
Osan-si Yongin-si
Siheung-siGwangmyeong-si
Gwacheon-siSeongnam-si
Uiwang-si
Gunpo-si
Gimpo-si
Goyang-si
Yangju-siPaju-si Gapyeong-gun
Uijeongbu-si
Namyangju-si
Guri-si
Hanam-si
Gwangju-si
Icheon-si
Yeoju-si
Yangpyeong-gun
Seoul
IncheonGyeonggi-do
high
low
SeoulGyeonggi-do
IncheonMetropolitanCity
Seongnam
Yeoncheon-gun
Pocheon-si
Dongducheon-si
Ganghwa-gun
Ongjin-gun
Jung-gu Dong-gu
Seo-guBupyeong-gu
Anyang-si
Gyeyang-gu
Bucheon-si
Nam-gu Namdong-gu
Yeonsu-gu
Ansan-siSuwon-si
Pyeongtaek-siAnseong-si
Hwaseong-si
Osan-si Yongin-si
Siheung-siGwangmyeong-si Gwacheon-si
Uiwang-siGunpo-si
Gimpo-siGoyang-si
Yangju-siPaju-si Gapyeong-gun
Uijeongbu-si
Namyangju-si
Guri-si
Hanam-si
Gwangju-si
Icheon-si
Yeoju-si
Yangpyeong-gun
*source Naver, Google, Korean Venture Capital Association, Seoul Startup Hub, The Accelerator Portal, Startup incubating network system
132 Analysis of Startup Ecosystem
Startup activity analysis
Total number of startup activities
1.3 times a day
2,688Total
* Events held over multiple days are calculated as one event per day for the duration of the event / as of December 11, 2017.
Refer to the schedules posted on each website.
Monthly activityUnit : %
Jan.
20
15
10
5
0Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
5.5
9.7
8.0
10.7
6.2
9.0 9.3 9.6 9.3
6.9
14.4
1.2
*source Platum, Startup Alliance, K-Startup, D.CAMP, Google campus Seoul, Maru180 homepage
Success Stories of Born2Global Members
www.born2global.comwww.facebook.com/born2globalwww.linkedin.com/company/born2global
▶ Success Stories of Born2Global Members5Success Stories of Born2Global Members
Korea Startup Index 2017 137
Success Stories of Born2Global Members
Success Stories of Born2Global Members
Mymusic Taste
Odd Concepts
Salted Venture
4DReplay
Hankook NFC
NEOFECT
Sky Labs
SendBird
G’Audio Lab
Lunit Inc.
TwoEyes Tech, Inc.
Buzzvil
MINDs Lab
Riiid Co., Ltd.
MyMusicTaste
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Lee Jaeseok Developed products ▶ MyMusicTaste (fan request-based concert organizing service)
Foundation date ▶ December 2011 (MyMusicTaste launched in December 2013)
Website ▶ mymusictaste.com
Address ▶ MyMusicTaste, Hoerim Bldg., 14, Eonju-ro 130-gil (246-1 Nonhyeon-dong), Gangnam-gu, Seoul
2011
2013
2014
2015
2016
2017
•December - Founded as a corporation
•April - Launched beta version of MyMusicTaste•July - Won the Bronze Award at the “I Am a Global •Venture, Startup Battle Korea 2013”•�November - Made it to the top 10 at K-Tech Silicon
Valley•�December - Distributed official version of MyMusic Taste•�December - Executed kickoff concert with Japanese jazz
and hip hop artists re:plus X DJ Chika X Hidetake Takeyama
•�November - Won the Young Innovative Entrepreneur Award from the Korea Entrepreneurship Association
•�April - Attracted Series A investment from Formation 8, Samsung Venture Investment, Golden Gate Ventures, Time Wise Investment, and Partners Investment•�May - Awarded the Vienna Startup Package by the
Austrian government•�December - Won the Grand Prize at the Korea Content
Awards•�December - Attracted Series B investment from
Softbank Ventures, Samsung Venture Investment, Golden Gate Ventures, Partners Investment, Bokwang Venture Capital, and DT Capital
•�March - Launched second version of MyMusicTaste, featuring new look and features
•�November - Attracted Series C investment from KTB Network, Stonebridge Capital, Yellowdog, Softbank Ventures, Samsung Investment, Formation 8, Bokwang Ventures Investment, and Golden Gate Ventures
180
142
32
Dublin, Hong Kong, and Los Angeles
USD
22.3 million
Approx.
1.3million
Staff
Number of concerts organized
Number of cities in which concerts were held
Overseas subsidiaries
Cumulative investment
Number of users
138 Success Stories of Born2Global Members Korea Startup Index 2017 139
Success Stories of Born2Global Members
In the first four years after its founding, MyMusicTaste planned 147 concerts in 52 cities in 32 countries.
The concerts were held in a diverse range of countries and continents, including Southeast Asia, North
America, and various countries in Europe. Artists who have worked with MyMusicTaste range from famous
musicians such as EXO, BTS, and The xx to lesser-known musicians. Befitting the company’s reputation as
a global concert organizer, 99 percent of all its 1.35 million users are based overseas. In addition to the 41
employees at its Korean headquarters, the company also employs staff at its overseas offices.
Performances organized by MyMusicTaste always begin with requests from fans. After it receives
fans’ requests for a concert by their favorite artist, MyMusicTaste determines the ideal city and scale
for the concert and then contacts the respective artist and begins planning the performance. Because
MyMusicTaste comes to the negotiation table already armed with data on concert demand, it is much easier
for both the artist and the agency to organize the overseas concert or tour. Approximately 75 percent of the
company’s business involves organizing overseas performances by Korean artists, while 20 percent involves
organizing performances by foreign artists in foreign (non-Korean) cities.
Lee said, “Most artists are looking to generate large profits and interact with their fans from all corners of the
world through international tours. It is based on this need that we get a sense of the market and plan the
tour. Generally, the majority of concerts are held in major cities in developed countries, such as Los Angeles,
New York, Paris, and London. Performances in cities such as Madrid, Lisbon, Budapest, and Istanbul are
held with the aim of broadening a tour’s scope of venues to include lesser-known metropolises. In fact, it is
in such cities that demand for concerts is especially high.”
MyMusicTaste has successfully crossed the “valley of death” that all startups encounter in their early years:
financial hardship. Lee said, “From 2014 until early 2015, we managed to struggle through the ‘valley of death’
thanks to our founding members’ decision to forego being paid. Having endured that experience, I now realize
that companies do not survive because they are strong; they are strong because they have survived.”
MyMusicTaste’s sales and number of tickets sold have been more than doubling every year. In early
November, the company attracted an investment of KRW 12.3 billion, which it will use to expand its
Growth into a truly global service
“Companies do not survive because they are strong; they are strong because they have survived.”
Planning Concerts Tailored to Individual Tastes “MyMusicTaste”
MyMusicTaste is a global fan-initiated service for live events. MyMusicTaste connects artists and fans by
allowing fans to request their favorite artist’s concert in their city and planning events based on the analysis
of the requests. With the majority of its users located overseas, MyMusicTaste has certainly earned its
reputation as a global live event making service that amplifies the voices of fans all over the world.
MyMusicTaste was launched by CEO Lee Jaeseok in 2013. Originally a game developer, Lee was in charge
of supplying Nexon’s Maple Story in the United States and Europe from 2006 until 2009. After witnessing
the explosive growth of the Maple Story development team following the company’s acquisition by Nexon,
Lee began dreaming of starting his own company. An avid Coldplay fan, Lee came up with the idea for
MyMusicTaste while trying to find a way to attend a Coldplay concert in Korea.
Lee said, “Entrepreneurship is the process of making something from nothing. Creating a company in an
area in which one has no connections or prior experience is a challenge. However, my experience as a
game developer was a great help in our efforts to imbue MyMusicTaste with a ‘master artisan spirit’ and our
consistent interactions with users around the world.”
“MyMusicTaste” analyzes the overseas demand
for concerts and directly engages in the planning of
the concerts.
With 1.35 million users around the world,
MyMusicTaste has been doubling in size every year.
The company is collaborating with a wide variety of artists, including
EXO, BTS, and The xx.
Going forward, it aims to expand into new genres and events, such as hip
hop and live events.
MyMusicTaste’s sales
and number of tickets
sold have been more
than doubling every year.
In early November, the
company attracted an
investment of KRW
12.3 billion.
140 Success Stories of Born2Global Members Korea Startup Index 2017 141
Success Stories of Born2Global Members
Lee explained that the support provided by the Born2Global Centre was a great help for the company its
efforts to connect with fans and organize concerts in new cities.
He said, “Out of desperation to keep themselves afloat, startups often end up focusing on government projects,
which usually makes it very difficult for them to grow their key businesses. In this respect, we benefited a great
deal from the Born2Global Centre’s enthusiastic support of our core global business endeavors.”
overseas offices and diversify the genres of performances it plans in North America.
Lee said, “The investment we received in November will be used not to help us survive but to continue
growing our company. Going forward, we plan to diversify the genres of concerts we host around the world
to include hip-hop and rap and increase the size of our overseas offices so that they can take on greater
roles and responsibilities.” Lee emphasized, “If your aim is to change the paradigm of the performance
industry, it is not enough to simply pool the resources of several teams or institutions. So far, we have
received a lot of assistance from overseas investors.”
Including its initial analysis of overseas demand for concerts, MyMusicTaste is involved in various aspects
of concert preparations, including scheduling, concert venue reservation, and stage direction. Not only is
it a technology-based company that uses IT to analyze data, it is also an O2O company in that it directly
organizes offline performances.
The vision of MyMusicTaste is to bring happiness to music fans worldwide. Toward this end, it has thus far
been involved primarily in live event planning, including concerts, fan meetings, and showcases, but hopes
to expand its areas of business. Lee added, “We are also seriously considering expanding into the auxiliary
product and commercial business areas related to live events. Basically, what we do is analyze fans’
activities in order to maximize their happiness.”
“The full support of the Born2Global Centre has been a big help.”
Bringing happiness to global music fans
Odd Concepts
Company Information SUMMARY
COMPANY HISTORY
CEO ▶ Kim Jeongtae (John T. Kim) Developed products ▶ DeepLook and Oddeye
Foundation date ▶ May 2012 Website ▶ oddconcepts.kr
Address ▶ 5F, 5, 19-gil, Teheran-ro, Gangnam-gu, Seoul
2012
2013
2014
2015
2016
2017
•Renamed company as “Odd Concepts Corporation”
•�Launched commercial service of the Oddeye engine and was ranked No. 1 in engine performance evaluations conducted by a large number of global companies
•�Operated an omni-channel service based on the Oddeye engine and registered multiple patents, both domestically and internationally
•Attracted Pre-Series A investment from KB Investment
•�Launched automatic, machine learning-based clustering service for online products
•�Launched commercial service of DeepLook, securing 150 million data traffic and four million unique visits per month
•�Attracted Series A investment from Stonebridge Capital and Colopl Next
CURRENT STATUS
11Staff
Plan to open a Japanese branch
Not disclosed
Overseas expansion
Sales
142 Success Stories of Born2Global Members Korea Startup Index 2017 143
Success Stories of Born2Global Members
Odd Concepts conducts its business by supplying APIs to fashion e-commerce sites. It decided to do this
after realizing that it would be easier to become competitive by supplying optimized solutions that satisfy
the needs of actual users rather than focusing on more visible
projects.
In fact, Odd Concepts does not invest in technologies such as
optical character recognition (OCR) or facial recognition. Instead,
the company has opted to focus on areas that best highlight its
strengths, such as image and video search, as is evident in its
choice of fashion as its core business area.
Odd Concepts CEO Kim Jeongtae said, “My idea for this business
came from the fact that while other e-commerce companies are
using various types of search techniques, the fashion industry
was still depending on a very primitive form of search. With our
commercialization of an AI-based search function, shoppers can
now find not only clothing of similar styles but also the prices at
which such clothing is sold on other sites, thus naturally allowing
for easy price comparison.”
Although it has been less than one year since the February launch of Odd Concepts’ DeepLook service,
the company has achieved the unprecedented record of 150 million API calls a month, having begun
at only around 100,000 API calls in its first month in operation. This represents a 1,500-fold increase in
just 10 months, during which time the service’s number of monthly users has risen to four million.
An even more significant accomplishment is that of its total API calls, 15 to 20 percent now come from
Japanese e-commerce sites. Kim said, “We chose Japan as our first market because, unlike other
East Asian countries, it has a unique, closed-off fashion ecosystem. After three months of knocking
on doors, traffic increased by over 70-fold in six months, which eventually enabled us to secure an
investment from a Japanese venture capital firm.”
In November, Odd Concepts succeeded in receiving an investment from the Korean venture capital
firm Stonebridge Capital and the Japanese venture capital firm COLOPL NEXT. With these two major
Rapid market domination through unique B2B strategy
1,500-fold increase in API calls in 10 months, leading to growing interest from Japan
AI meets a shopping mall: capitalizing on the perceptive abilities of AI “Odd Concepts”
Odd Concepts upplies an AI-based image search application program interface (API) through a cloud service.
First, it allows the user to choose clothes that match his or her tastes, and then automatically employs the image
search engine DeepLook (independently developed by Odd Concepts) to search for similar types of clothing and
displays the results. The service is capable of finding not only images of the clothing worn by the model based on
features such as shape, color, or pattern but even clothes that are hanging in a store.
API designed especially for mobile shopping
From simple AI analysis of user preferences to
content creation
Competitiveness in terms of quality of the search
engine, which gives tens of thousands of search
results
In November, Odd Concepts succeeded in receiving a total investment of KRW 2.5 billion from the Korean venture capital firm Stonebridge Capital and the Japanese venture capital firm COLOPL NEXT. With these two major investments, general expectations concerning Odd Concepts’ growth potential have increased.
144 Success Stories of Born2Global Members Korea Startup Index 2017 145
Success Stories of Born2Global Members
Salted Venture
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Cho Hyung-jin Developed products ▶ Smart shoes and fitness coach solutions
Foundation date ▶ September 2015 Website ▶ iofitshoes.com
Address ▶ 728-22, Yeoksam-dong, Gangnam-gu, Seoul
2015
2016
2017
•� August - Became one of the first startups to spin off from Samsung Electronics
•� September - Founded the Salted Venture Corporation•� October - Attracted total investment of KRW 600 million•� November - Certified as a venture firm and established
an R&D center
•� February - Participated in Mobile World Congress (MWC)•� August - Conducted a Kickstarter campaign (attracting
USD 100,000, or 300% of funding goal)•� November - Won CES 2017 Innovation Award in the
Wearable Technologies category•� December - Selected as one of the K-Global 300
companies
•� February - Won the ISPO Gold Award in the Fitness & Health category
•� March - Attracted Pre-Series A investment of KRW 1 billion
•� Launched products
12Staff
North America
Not disclosed
Overseas expansion
Sales
•����Plans to release a collaboration product with a sports brand (in the first half of 2018)
Other accomplishments
investments, general expectations concerning Odd Concepts’ growth potential have increased. Last
year, the company received an additional investment from KB Investment.
Odd Concepts will continue targeting foreign markets by securing sales channels and establishing
strategic partnerships with the aim of engaging in marketing collaborations. It intends to increase its
search accuracy through AI sophistication, achieved via machine learning, and pioneer markets by
engaging in collaborations with local companies.
Kim said, “Based on the DeepLook engine currently in operation, we are planning an additional search
engine that is focused on content.” He then went on to explain that the company will continue seeking
investment from global investment companies and plans to apply the data it has gained through
DeepLook to various types of content, thereby expanding the scope of its business.
Our product database,
which is updated over five
million times a day, and the
technology needed to keep
this database running are
what set Odd Concepts
apart from its competitors.
146 Success Stories of Born2Global Members Korea Startup Index 2017 147
Success Stories of Born2Global Members
Salted Venture delops “training coaches” rather than digital step counters
Salted Venture makes smart wearable devices. However, while other smart wearable device
manufacturers focus on measuring the wearer’s heartrate, breathing, and distance traveled via a smart
band or watch to ascertain the wearer’s current status and total calories burned, Salted Venture goes
one step further. Designed especially for golfers, the company’s IOFIT smart shoes actually teach the
wearer proper golf posture.
Salted Venture’s primary product, IOFIT is a golf shoe with a sensor installed in its sole. This sensor not
only takes highly accurate measurements of the current state of the wearer’s body but also provides
a mobile fitness coaching solution through a linked smartphone or tablet. While most golf coaching
devices focus on the upper body aspects of the user’s swing, IOFIT collects data on weight transfer,
which is directly related to driving distance, and displays it in real time so the wearer can check
whether he or she has assumed the proper posture and properly transferred his or her body weight
from one foot to the other at given times during the swing. In addition to data on the wearer’s swing,
IOFIT uses data on posture, weight transfer, and other skills of professional golfers as a standard for
comparison, allowing users to further enhance their skills.
Salted Venture CEO Cho Hyung-jin said, “Although some exercise devices currently on the market
boast excellent performance, they are not much more than glorified step counters at best. IOFIT,
however, uses data from the feet (plantar pressure) and video images of the body (center of gravity)
to detect common bad golf habits that the wearer may not even be aware of, such as slicing and
duffing. It then displays this data to the wearer so that the necessary improvements can be made.
The data is also used to help prevent injury and increase performance.” The IOFIT was recently used
for KPGA training and a TPI (Titleist Performance Institute) training seminar. It is also used at coaching
academies run by famous Korean pro golfers such as Choi Jong-hwan, Na Seung-uk, and Jang Jae-
shik. Domestic pro golfers and coaches who use IOFIT have praised the product as “a pioneering force
of the golf coaching market.”
If we can secure the
top position in the golf
market, which is one of
the most difficult markets
to penetrate, we believe
that we will also be able
to succeed in the running
and fitness markets, which
are dominated by existing
sportswear brands such as
Nike and Under Armour.
148 Success Stories of Born2Global Members Korea Startup Index 2017 149
Success Stories of Born2Global Members
Salted Venture has
received a KRW 600
million investment
from Samsung Venture
Investment and a KRW
1 billion investment from
overseas firms. Officially
released in July, IOFIT has
achieved approximately
KRW 200 million in sales.
4DReplay
Company Information SUMMARY
COMPANY HISTORY State
CEO ▶ Jung Hongsu Developed products ▶ 4DReplay (specialized video solution)
Foundation date ▶ February 17, 2012 Website ▶ 4dreplay.com
Address ▶ United States: 630 8th Street, Suite 4, San Francisco, CA 94103
Korea: 3-12, Dongpangyo-ro 52beon-gil, Bundang-gu, Seongnam, Gyeonggi-do
2012
2013
2014
2015
2016
2017
•� February - Founded as a corporation
•� May - Established affiliated research institute
•� May - Supplied content of the Incheon Asian Games
•� April - Supplied KBO League content to SBS Sports•� June - Certified as venture firm•� November - Won the grand prize at the Korea Excellent
Patent Awards, hosted by Hankook-Ilbo
•� April - Supplied KBO League content to KBSN and SK Wyverns
•� October - Established American subsidiary 4DReplay, Inc.
•� March - Supplied video content of WBC 2017•� May - Supplied video content of U20 World Cup Korea•� June - Supplied video content of the US MLB League•� August - Signed deal to attract investment from Japan’s KDDI����- Supplied video content of Japan’s NPB League•� October - Supplied video content of the United States’
NBA League•� November - Supplied video content of Japan’s NPB Japan Series - Struck deals to attract investment from KT and Mirae
Asset
24Staff
United States, Japan, and China
Overseas expansion(planned)
KRW
1.1 billion
Sales(2016)
•����Plans to supply video content of PyeongChang 2018 Olympic and Paralympic Winter Games
Other accomplishments
The idea behind the IOFIT was to replace the typical golf simulators used in the golf coaching market.
The simulator commonly found in professional golf coaching centers is a device that consists of a high-
speed camera, computer system, and ground reaction force sensing device, which measures changes in
the user’s center of gravity. Until now, this type of golf simulator was very expensive and available to only
professional golfers and students at golf academies. With the development of IOFIT, customers can now
get a device that does everything equipment costing over $20,000 can do for the much lower price of $359
to $399. As a result, IOFIT has popularized the golf coaching market, allowing anyone who loves golf to
experience the center of gravity-based coaching that was previously available to only professionals.
For Cho, the hardest part of the development process involved the characteristics of the shoe as a smart device.
Contrary to smart watches, smart bands, and smart clothing, shoes must be highly durable, as they are not only
subject to intense pressure and resistance from being in constant contact with the ground, but can also get wet
when it rains. Moreover, the sensor inside the shoe must be highly sensitive and capable of analyzing the user’s
movements in the short time it takes to make a swing. In other words, the shoe had to be durable and sensitive
at the same time. After literally thousands of tests, Cho finally managed to balance these two factors perfectly in
terms of design and the production process, marking the birth of IOFIT.
Putting a large and expensive golf simulator in a shoe
150 Success Stories of Born2Global Members Korea Startup Index 2017 151
Success Stories of Born2Global Members
baseball but throughout the United States and Japan as well.
At the core of 4DReplay’s technology is the function that allows users to watch the video of
their choice whenever they want. This technology goes beyond the space-oriented video filming
method to record the movements of the subject from a 360-degree angle, allowing any moment
of the video to be replayed from any angle.
Most of the video footage we see played on television during baseball game broadcasts is now
created using 4DReplay’s technology. After first being used for the pole jump at the Incheon Asian
Games, 4DReplay’s technology went on to be used for SBS professional baseball game broadcasts
in 2015 and KBS baseball game broadcasts in 2016 and 2017.
4DReplay is now recognized in other countries as well. Having filmed a few San Francisco Giants
games and done a Japanese professional baseball game broadcast, the company will soon be
signing contracts with sports associations and broadcasting companies in various countries (United
States, Japan, and European countries).
The main reason for 4DReplay’s growing visibility in the industry is its unparalleled technology,
which compares favorably in terms of quality and performance than that of the Israeli startup that
was acquired by Intel in August 2016. According to 4DReplay, it is capable of creating and playing
videos in 4K resolution in just five to ten seconds, while it takes minutes for its competitors to do
the same.
As its name suggests, 4DReplay has developed technology for replaying 4D videos.
CEO Hongsu Jung said, “The difference in scale between the Korean and global sports markets is
significant, especially in terms of broadcasting rights. So, to make it easier for us to enter overseas
markets, we decided to establish our headquarters in Silicon Valley.”
4DReplay’s technology goes beyond the space-oriented video filming method to record the
movements of the subject from a 360-degree angle, allowing any moment of the video to be
replayed from any angle.
As Jung had hoped, 4DReplay has already grown beyond the Korean market and is knocking on
the doors of foreign markets. The company’s video technology, which was put into action for
the first time at the 2014 Incheon Asian Games, is being applied not only in Korean professional
From domestic leagues to the major league with 4D videos “4DReplay”
Time series replay for all sports events, such as
those at the PyeongChang Winter Olympics and the
Japan Series
Secret to the company’s competitiveness:
knowledge and experience in all areas related to
cameras
152 Success Stories of Born2Global Members Korea Startup Index 2017 153
Success Stories of Born2Global Members
Hankook NFC
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Richard Hwang Developed products ▶ Phone2Phone, NFC Pay, and authentication services
Foundation date ▶ April 1, 2014 Website ▶ hankooknfc.com
Address ▶ 10F (KTB Network Incubating Center), A-dong, U-space 2, 670, Daewangpangyo-ro,
Bundang-gu, Seongnam, Gyeonggi-do
20132014
2015
2016
2017
•�December - Registered patent for “Self-Card Payment System Using a Mobile Device and How to Use the System”
•�April - Founded Hankook NFC Corporation•�July - Attracted first round of investment from KTB Network•�September - Certified as venture firm by the Korea Venture Capital Association (KVCA)•�December - Listed among Top 100 Startups by Startup Alliance•�January - NFC Pay successfully passed security review of the Financial Supervisory
Service•�March - Attracted second round of investment from KDB Capital and L&S Venture
Capital and selected as a smart finance advisor for the Industrial Bank of Korea•�April - Registered patent for “Simple Personal Authentication System Using a Mobile
Device and Plastic Credit Card and How to Use the System”•�June - Filed domestic patent application for “Simple Ordering Service-Providing
System Using NFC Tech and How to Use the System”•�July - Selected to be a member of the K-ICT Born2Global Centre’s “K-ICT Global
Business Support Program” and signed contract for a joint NFC Pay service project with NHN KCP
•�August - Signed personal authentication contract for PayOn with NHN KCP and filed domestic patent application for “Mobile Banking Account Transfer System through Personal Authentication for Plastic Credit Card and Debit Account and How to Use the System”
•�October - NFC Pay successfully passed security review of Samsung Card and KB Kookmin Card; filed patent application for Phone2Phone Pay, based on Samsung Pay; signed contract to supply Interpark’s shopping division with NFC Pay service; and filed patent application for NFC personal authentication service in major overseas markets (United States, China, Europe, and Australia)
•�November - Supplied Ticketmonster with NFC tech service; chosen as promising ICT company among K-Global 300 companies; filed domestic patent application for “Fingerprint Personal Authentication System Using Credit Card Information Saved in a Mobile Device and How to Use the System”; filed domestic patent application for “Mobile Card Payment System Enabling Card Payments between Mobile Devices and How to Use the System”; and listed among Top 100 Startups by Startup Alliance
•��January - Signed contract to supply SBS Golf with NFC Pay service and forged business partnership with Penta Security Systems to provide Samsung Pay’s personal authentication service
•�February - Participated in 2016 Mobile World Congress with Phone2Phone Pay•�March - Signed business alliance agreement with KCB to provide NFC personal
authentication service; signed strategic alliance deal with Galaxia Communications to provide Phone2Phone Pay service; and supplied Lotte Super and AlarmMon with NFC tag service
•�April - Supplied AmorePacific with NFC tag service; NFC Pay launched in Interpark’s shopping division
•�May - Phone2Phone Pay, a payment service for Samsung Pay, launched pilot service for gas stations
•�June - Registered patents for “Simple Personal Authentication System Using a Mobile Device and Plastic Credit Card and How to Use the System” and “Fingerprint Personal Authentication System Using Credit Card Information Saved in a Mobile Device and How to Use the System”
•�July - Selected to be a member of the K-ICT Born2Global Centre’s “K-ICT Global Business Support Program”
•�May - Attracted third round of investment from Japan’s MJS•�August - Won first prize at the 2017 Maekyung Fintech Awards
12
Japan (2017)Southeast Asia (2018)
Not disclosed
•����Domestic: 5 registered /
1 application
•����Overseas: 1 registered /
7 applications
4DReplay moved its headquarters to the United States for one simple reason: to expand its foreign business
volume. Soon, the company hopes to provide its services to popular sports broadcasting companies in
numerous other countries, including those involved in baseball, basketball, and ice hockey in the United
States and in soccer, cricket, golf and rugby in European countries.
In addition to diversifying the sports events the company covers, Jung is looking into a wide range of
business models. Starting next year, 4DReplay will begin offering its services via mobile application.
Wireless carriers and broadcasting companies are working to find ways to provide all the support needed for
4DReplay’s filming, including set construction and technological support, as one comprehensive package.
In the near future, 4DReplay plans to strengthen its cooperative relationships with camera manufacturers
with the aim of enhancing the quality of its videos.
Breaking out of the domestic market and going global
Major global companies are
showing increasing interest
in our company, and we
already spend more than
half of every year working
on projects outside Korea.
Besides sports, 4dreplay’s
technology can be applied
to a near-infinite number of
areas, such as educational
solutions.
Staff
Overseas expansion(planned)
Sales
Patents
154 Success Stories of Born2Global Members Korea Startup Index 2017 155
Success Stories of Born2Global Members
One major advantage of this payment method is that the user does not need to download or register a mobile
application. Moreover, as credit card information is not saved on the smartphone, there is little need to fear losing
personal information due to hacking or misplacing the phone.
In addition to its NFC-based payment system, Hankook NFC has developed an NFC self-authentication service and
P2P (phone-to-phone) payment technology based on Samsung Pay.
Hankook NFC CEO Richard Hwang said, “Our technology helps offline stores increase their sales via online means.
In addition, we provide a function that automatically creates a card payment window on your smartphone when you
upload a product photo to your social media account.”
This allows store owners who have many followers on social media to sell their products without having to upload
photos onto an open market or online shopping mall. The use of direct transaction approval by credit card companies
instead of a POS reader or VAN network has the added benefit of cutting costs for small business owners.
Hankook NFC’s technology generated even greater excitement in the Japanese market than it did in Korea.
In May 2017, the company succeeded in securing an investment of KRW 3 billion from and signing a
service partnership contract with a Japanese company. The entire process took six months, starting with
Hankook NFC’s introduction of its technology in late 2016 and an inspection of the company.
Convenient NFC-based payment marks rise of fintech
KRW 3 billion investment secured from and service alliance forged with Japanese company
Hankook NFC leads the emergence of a “cashless society” in Japan
Hankook NFC was founded in April 2014 by CEO Richard Hwang. The company’s goal is to provide
convenient and safe fintech services based on NFC technology, one of the most widely used examples of
which is the transportation card for Korea’s bus and subway systems.
Hankook NFC’s patented technology enables mobile payments by pairing an NFC-enabled Android
smartphone with a credit card. Payments can be made even without a point-of-sale (POS) reader by
holding a credit card up to an NFC-enabled smartphone and entering the credit card’s password.
Hankook NFC’s technology
generated even greater
excitement in the Japanese
market than it did in Korea.
In May 2017, the company
succeeded in securing
an investment of KRW 3
billion from and signing a
service partnership contract
with a Japanese company.
The entire process took
six months, starting with
Hankook NFC’s introduction
of its technology in late
2016 and an inspection of
the company.
156 Success Stories of Born2Global Members Korea Startup Index 2017 157
Success Stories of Born2Global Members
NEOFECT
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Ban Ho-young Developed products ▶ RAPAEL (smart rehabilitation solutions)
Foundation date ▶ June 2010 Website ▶ neofect.com
Address ▶ Neofect, #401, West Hall, Dankook University, 152, Jukjeon-ro, Suji-gu, Yongin, Gyeonggi-do
2010
2014
2015
2016
2017
•�June - Founded as a corporation
•�December - Launched first RAPAEL Smart Glove product, and registered it with the US FDA
•�January - Won Runway Incubator Award at the “beGLOBAL San Francisco 2015” startup conference•�November - Selected as an honorary K-Global 300 company
•�February - Published paper on the effect of the RAPAEL Smart Glove in Journal of NeuroEngineering and Rehabilitation•�March - Selected as a showroom finalist at Pioneer Asia 250•�August - Established subsidiary in San Francisco, United States•�October - Released new RAPAEL Smart Kids product for
children with disabilities•�November - Established subsidiary in Munich, Germany - RAPAEL Smart Glove won the Thematic Award at ITU
Telecom World, the world’s biggest ICT exhibition, as well as a 2017 CES 2017 Innovation Award
•�January - Attended CES 2017; RAPAEL Smart Glove selected as one
of CNN’s 14 coolest tech products from CES 2017 - RAPAEL Smart Glove selected as one of CNET’s 50 coolest
tech products from CES 2017 and ZDnet’s best 11 smart home, IoT products from CES 2017
•�May - Launched RAPAEL Smart Board, a medical device for upper limb rehabilitation•�June - RAPAEL Smart Glove selected as winner in “Caregiver Quality
of Life” category at the AARP Innovation Champion Awards•�August - Released RAPAEL Smart Pegboard, a digital
pegboard for functional and cognitive rehabilitation•�October - RAPAEL Smart Glove won the Popular Science’s
Best of What’s New Award•�Launched RAPAEL ComCog, software that enables stroke or
dementia patients to engage in cognitive rehabilitation through games•�November - RAPAEL Smart Pegboard won CES 2018 Innovation
Award
50
United States and Europe (Belgium, Netherlands, Poland, Germany, Denmark, Italy, etc.)Asia (Singapore, Hong Kong, Bangladesh, etc.)
KRW
2.1 billion
Staff
Overseas expansion(planned)
Sales(as of end of 2016)
Although Apple Pay is highly popular in Japan, as NFC readers have been installed only in subway stations
and certain convenience stores, the service is largely unavailable. With Paytomo, however, store owners/
merchants need only install the Paytomo app on their smartphones to be able to accept payments via Apple
Pay, credit card, or bitcoin, without having to replace their POS reader. Hankook NFC has high expectations
for the commercialization of its service in the Japanese market in 2018, with its biggest opportunity being
the upcoming 2020 Tokyo Olympic Games. In preparation for the Games, through which Japan aims to
attract 40 million foreign tourists to the country, the Japanese government and credit card companies are
making aggressive efforts to expand the availability of credit card payment services.
Furthermore, with Japan having increased the consumption tax from five to eight percent, store owners
have even more cash on their hands, leading to money management issues and increased general
agreement on the need for Japan to become a cashless society.
Hwang said, “Our investor, MJS Group, is the second largest company in Japan’s electronic payment
industry and, accordingly, has a nationwide customer base. By combining an investment with a royalty-
based contract, we were able to enter the Japanese market faster than engaging in a joint venture or
attempting to do so on our own would have permitted.”
The Japanese partner company, MJS, will be using Hankook NFC’s patented technology to provide a
phone-to-phone payment service, called Paytomo, throughout Asia. It will be released in Japan in February
2018.
MJS is a Japanese ERP company that is well known domestically for having been listed on the Tokyo Stock
Exchange as early as 1997. Together with its partnership with Hankook NFC, MJS founded a subsidiary (MJS
Finance & Technology) through which it plans to enter the fintech industry in earnest.
In Japan, the credit card payment rate is quite low, at only 17 percent. The reason for this is that many
stores do not accept credit cards due to the high commission fees involved.
Hwang said, “In Japan, people believe that making cash payments for small purchases is beneficial to the
store owner. Also, as Japan does not have the same government regulation Korea does to prevent credit
card affiliates from refusing credit card payments, many credit card affiliate stores request cash payments.”
Phone-to-phone payment method accelerates arrival of cashless society in Japan
158 Success Stories of Born2Global Members Korea Startup Index 2017 159
Success Stories of Born2Global Members
CEO Ban Ho-young was always interested in rehabilitative treatment. “My father and uncle both died from
stroke. In both cases, it was very difficult to have to just stand by and watch them suffer. During those
experiences, I noticed the lack of rehabilitation methods available for patients who have lost most of their
Harnessing painful experiences and applying them to the creation of a patient rehabilitation solution
Medical Solution Company Specializing in Stroke Rehabilitation “NEOFECT”
NEOFECT develops medical devices and software for stroke patients and people suffering from neurological
or musculoskeletal diseases. At CES, the world’s largest electronic device trade show, in 2017, NEOFECT
received an Innovation Award for its RAPAEL Smart Glove, a rehabilitation device for the hands, wrists,
and lower arms of stroke patients. More recently, the company received its second consecutive Innovation
Award at CES 2018 for its RAPAEL Smart Pegboard, a rehabilitation device designed for stroke patients’
hands and arms.
The main feature of NEOFECT’s RAPAEL series is its use of games. Unlike other rehabilitation device
companies, the majority of which offer products that involve the repetition of simple and boring movements,
NEOFECT has introduced a game-based element to its devices to make rehabilitation activities more
entertaining and effective.
The company’s most recent release is the RAPAEL smart pegboard, which, simply put, is a digital version of
the traditional wooden pegboard. With this device, the patient engages in rehabilitative training by grasping
and placing wooden pegs into a board in accordance with the rules of the selected game. The purpose of
pegboard training is to enhance hand-eye coordination, fine motor skills, cognitive ability, space perception,
and concentration.
The 63 high-luminance LEDs installed on the board light up to show the user where to place the pegs. For
example, when playing the whack-a-mole game, only the holes where the user is expected to place the
peg light up. To have patients make shapes, the lights create the shape of a heart or arrow, among others.
The device also provides audio feedback through a speaker embedded in the board that notifies the user of
his or her progress through sound effects and voice.
160 Success Stories of Born2Global Members Korea Startup Index 2017 161
Success Stories of Born2Global Members
Unlike other rehabilitation solution companies, which have focused mainly on hardware development,
NEOFECT has grown based on its prioritization of both software and hardware. It is currently developing
a rehabilitation solution that involves the use of AI and IoT. Ban said, “Big data is the key. We will be
thoroughly analyzing the movements that enable patients to recover their neurological functions more
quickly.”
To develop new products, Ban is also actively striving to attract investment. As of last year, the company’
s annual sales stand at around KRW 2.1 billion, but it has already accumulated KRW 13.5 billion in
investment, meaning that many companies are very optimistic about NEOFECT’s potential. The list of
NEOFECT investors includes a number of famous KOSDAQ-listed venture capital companies, including
DSC Investment and Company K.
After receiving consultations from the Born2Global Centre on patents and two areas of accounting,
NEOFECT was able to conduct its business more effectively. The company’s transaction method, which
had primarily been B2B, was changed to include more B2C transactions in 2017, allowing NEOFECT to help
more patients with their rehabilitation efforts.
Pioneering a next-generation medical device market under the Fourth Industrial Revolution
Ban believes that the greatest strengths of NEOFECT products are practicality and convenience. As an
engineering major, Ban was confident about his ability to develop machines and solutions, but knew that
he lacked medical expertise. “I visited rehabilitation centers literally hundreds and thousands of times. I met
with patients, doctors, and physical therapists to get as accurate a picture as possible of the rehabilitation
process.” This direct feedback from the field, which we had not considered in his first product designs, was
then applied to the creation of NEOFECT’s final products.
Another strength of the company’s products is convenience. Most rehabilitation equipment is very costly
(hundreds of millions of Korean won) and quite large, which is why they are available only in hospitals. As a
result, patients who are determined to get well have no choice but to undergo rehabilitation at a hospital.
motor abilities and began thinking about how to resolve that problem.” A university friend of Ban’s who was
studying rehabilitative medicine at the time shared his views and suggested starting a company together,
thus giving birth to NEOFECT.
Practical feedback is just as important as research in the lab
Sky Labs
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Lee Byunghwan Foundation date ▶ September 8, 2015 Website ▶ i-skylabs.com
Developed products ▶ CART (cardio tracker), a ring-type device for detecting atrial fibrillation
Address ▶ #301, 3F, C-dong, 242, Pangyo-ro (Pangyo Digital Center, Sampyeong-dong), Bundang-gu,
Seongnam, Gyeonggi-do
2015
2016
2017
•September - Founded Sky Labs Corporation
•�December - Selected as an incubee company of the Incheon Center for Creative Economy & Innovation
•January - Attracted seed investment from SparkLabs•�March - Granted approval to establish an affiliated research
institute•�May - Certified as a venture firm by KIBO - Certified as an “excellent company” by the technology
evaluation of the NICE Information Service - Selected as one of the top three domestic winners of
Grants4Apps Korea, hosted by Bayer Korea•�June - Participated in SparkLabs Demo Day•�July - Selected as a member company of the K-ICT
Born2Global Centre•�August - Chosen as one of the top four global winners of
Bayer Grants4Apps Accelerator 2017•�November - Invited to be a speaker at Frontiers Health Conference 2017 - Invited to be a speaker at Digital Silver Forum 2017 - Took part in Slush 2017 and gave a presentation at
Grants4Apps Accelerator Demo Day•�December - Attended Tech Crunch Disrupt Berlin 2017 - Attracted Pre-Series A investment from Atinum Investment
and Mirae Holdings
8
Germany, Finland, Sweden, and the United Kingdom
Not disclosed
Staff
Overseas expansion(planned)
Sales
•����Attracted investment from and jointly developed a project with the headquarters of Bayer and conducted a joint clinical trial with Seoul National University Hospital
Other accomplishments
162 Success Stories of Born2Global Members Korea Startup Index 2017 163
Success Stories of Born2Global Members
CART is tiny wearable device developed independently by Sky Labs which is optimized for the early
diagnosis of atrial fibrillation. Designed in an easy-to-wear ring shape, it consistently monitors for any signs
of atrial fibrillation. CEO of Sky Labs, Lee Byunghwan said, “As stroke caused by atrial fibrillation accounts for
over half of all stroke-caused deaths, it is a serious condition. CART is currently the best way to consistently
monitor for the warning signs, which is the most important means of diagnosing atrial fibrillation.”
In general, the symptoms of atrial fibrillation include a pounding sensation in the chest, difficulty in
breathing, feeling of stuffiness/suffocation, and exhaustion. However, patients who are adjusted to chronic
atrial fibrillation or shows heartrate close to normal heartbeat, often display no apparent symptoms, meaning
early diagnosis is very important for such patients. Most existing equipment for diagnosing arrhythmia uses
electric signals (ECG), which is a method that involves placing electrode pads on the patient’s chest, or
doctors to use both hands to gauge the condition of the heart. The limitation of the ECG method is that it
cannot be used to monitor for the infrequent symptoms of atrial fibrillation on a regular (daily) basis.
However, Sky Labs’ CART uses optical signals in the ring. This ring-shaped device is equipped with
an optical sensor that measures the speed of blood flow in the fingers, allowing measurements of the
heartrate as well as detecting any irregular heartbeats. The wearer can check the heartrate measurement
results via the accompanying mobile application. CART is also more accurate and convenient than existing
diagnosis methods. Lee said, “All you have to do is slip CART onto your finger, and it does the rest! It is
comfortable to wear and does not require any handling or operation, all the while constantly collecting data
necessary for the diagnosis of atrial fibrillation.”
Sky Labs’ sophisticated technology is already being recognized internationally, as evidenced by the
company’s selection as a final candidate in 2017 for the Grant4Apps Accelerator, a startup support program
by the Leverkusen-based global pharmaceutical firm Bayer. Support came from Bayer’s headquarters after
Sky Labs won the first place in the Grant4Apps Korea Contest (co-hosted by Bayer Korea and KOTRA).
Grant4Apps is a contest that is widely known as the best opportunity for healthcare startups to turn their
ideas into actual business projects. Of the four startups selected in 2017, Sky Labs was the only Korean
company. Thanks to its success in the contest, Sky Labs will be receiving project funding from Bayer and
exclusive office space at its headquarters. Mentoring session by Bayer’s experts have been provided to
Sky Labs for more ideas in achieving greater growth, and Lee recently participated in the Frontiers Health
Conference, a healthcare event held in Europe, and the EU’s Digital Silver Forum as a speaker. Through
such opportunities, Sky Labs is busily establishing foothold in entering the European market.
In early 2018, Sky Labs will be releasing CART as a wellness product. However, after completing clinical
CART: allowing for real-time diagnosis of atrial fibrillation
Green light from Bayer expects to result in positive synergy effect
A smart watch that protects the heart: ushering in an era of data-based healthcare
Atrial fibrillation is a form of arrhythmia that causes the atria to beat irregularly. A common chronic disease
among those above 40, it is also a major cause of stroke. The death rate of stroke caused by atrial fibrillation
is quite high, which means it is crucial to discover malfunction warnings from the body as soon as possible
to prevent fatal situations from arising. However, due to the non-continuous monitoring of patients for early
diagnosis of atrial fibrillation, it is usually unnoticed until serious symptoms appear.
Developed CART, a wearable device for the early diagnosis
of atrial fibrillation
Measures heart rate and blood flow using optical
signals and provides real-time analysis through a
mobile app
Laid the foundation for its expansion into Europe with the support of Bayer, a German pharmaceutical
company
Expected to be officially released in the diagnostic medical device market in
164 Success Stories of Born2Global Members Korea Startup Index 2017 165
Success Stories of Born2Global Members
SendBird
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Kim Dong-shin Foundation date ▶ November 2012 Website ▶ sendbird.com
Developed products ▶ Online software development research and technology consulting service
Address ▶ 13F, Endeavor Tower, 45, Seocho-daero 74-gil, Seocho-gu, Seoul
2012
2014
2015
2016
2017
•�November - Founded Smile Family
•�March - Selected for and joined Techstars London•�October - Converted to a corporation headquartered in
the United States
•�December - Selected as the Best Startup by the Small and Medium Business Administration
•�March - Selected for Y Combinator and attracted investment•�June - Selected for KB Starters Valley and as an AWS
Hot Startup•�November - Chosen as one of the top four startups in
the Slush 100 Pitching Competition
•�January - Ranked No. 1 on the Top 50 Developer Tools of 2016, created by StackShare•�December - Attracted KRW 17 billion in Series A
investment
25
25000+
5million
6000+
Capstone Partners, Y Combinator, and NXMH
Not disclosed
Staff
Subscribers
Global chatting MAU
Linked apps
Major investors
Sales
The final goal of Sky Labs is to become a healthcare company that is based on data utilization. Using
data analysis, the company aims to secure technologies that can diagnose and predicting diseases.
After releasing CART, Sky Labs plans to develop devices and services that measure blood pressure and
blood sugar levels, and it is currently conducting research on technology and working to secure adequate
personnel to manage these projects.
evaluation with Seoul National University Hospital and licensing procedures, CART will be re-released as a
medical device. Discussions are also underway with German and Finnish hospitals regarding joint clinical
testing, as well as discussions on joint product releases in collaboration with Bayer. Sky Labs is targeting
not only individual consumers as the primary demand base for its atrial fibrillation diagnostic device but also
pharmaceutical companies, which frequently conduct large-scale clinical trials. To get the most accurate
clinical trial results, it is necessary to have as detailed data as possible on changes in the participants’
heartrates. Lee said, “Once CART enters the diagnostic device market, it will be used for various purposes,
including diagnosis and general health management for both healthy and sick individuals, provision of
clinical testing or services, and organizing projects for managing chronic diseases, just to name a few.”
Entrepreneurship based on personal experience: “We will usher in a new era of personal health management”
166 Success Stories of Born2Global Members Korea Startup Index 2017 167
Success Stories of Born2Global Members
CEO Kim also notes that the most difficult aspect of developing SendBird’s product was trying to convince
clients and investment companies about the merits of the company’s business model. He recalled, “In
2015, most Korean companies were unfamiliar with the SaaS model?paying for and using a technological
solution for a monthly fee. So it was difficult to explain our business model to client companies, most of
which regarded a chat application as a service and its developer as a subcontractor.” Most purchasing
departments of IT companies in Korea were unaware of API-format, cloud-based services. It was no easy
task to popularize a software product that requires adding it to one’s own consumer application to provide
an enhanced messaging service.
Kim said, “We were confident that our product was strong. So we eventually decided that we should enter
the United States market?a market more familiar with the SaaS model and one with a wider customer base
and more available funding. We’re still focusing on providing our services in the United States market, but
we’re making great in-roads in other global markets at the same time.”
Kim’s idea is already bearing fruit. Having recognized SendBird’s potential, several venture capital firms
and accelerators in the US have offered to invest. After Y Combinator (YC), known as one of the world’s
most prominent accelerators, selected SendBird, Kim says there has been a tangible difference in the way
outsiders now view the company. YC is a major accelerator that cultivates and consults for startups, while
it helps them secure funds and develop their technology. It is best known for giving initial support to now-
famous companies like Airbnb and Dropbox. Kim said, “Every year, almost 6,000 companies, dreaming
Korean market still hesitant to accept SaaS model: “shooting the moon” in the “global marketplace”
Receiving funding from the world’s greatest accelerator
Empowering customer communication for mobile, web, and consumer applications
SendBird develops and supplies chat APIs (Application Program Interfaces) for mobile, web and consumer
applications for businesses. Simply put, it creates richly-featured chat and messaging functions that
integrate with any business’s digital application. With the rise of messenger applications, consumers began
to expect seamless messaging experiences within other consumer apps. There is now a growing demand
for two-way communication between customers and businesses and amongst customers themselves.
SendBird CEO Kim Dong-shin said, “Messenger-like functions that involve communication with others
are highly sensitive to advancements in ICT. The small chatrooms of the Web 2.0 era have transformed in
today’s mobile era into the powerful mobile messenger services such as WeChat and Kakao Talk.”
“Because our product makes chat and messaging available to any business with a digital product,” Kim said
about SendBird’s product, “Our chat API will become the gold standard of chat in the future.”
The biggest advantage of SendBird’s API, according to Kim, is its universality. Since the product is SaaS
(Software as a Service), companies that choose the SendBird API can easily and drastically reduce their
development time from six months or more to several weeks.
“Increasingly more companies are combining our chat API with AI to create automated chatbots that
handle client consultations,” Kim said, “Going forward, we will continue our efforts to make communication
between people and businesses more natural and convenient.”
Increasingly more
companies are combining
our chat API with AI
to create automated
chatbots that handle
client consultations. Going
forward, we will continue
our efforts to make
communication between
people more natural and
convenient.
168 Success Stories of Born2Global Members Korea Startup Index 2017 169
Success Stories of Born2Global Members
of becoming the next Airbnb, apply to enter YC’s Accelerating Program. Of these, YC selects 80 to 100
companies to support. We are only the second Korean company after MemeBox to be selected by YC.”
Thanks to this overseas recognition, SendBird has managed to secure a total investment of KRW 5.5 billion
from multiple startup stars, including Justin Kan, the co-founder of Twitch.tv (the world’s largest game
broadcasting channel and Amazon affiliate). SendBird will receive an additional KRW 20 billion by December
2017, which the company will devote to further improving the quality of its product.
The Born2Global Center gave consultation support to SendBird on law and patents, while the startup
develolped its API. Thanks to Born2Global Center’s consultation, SendBird was able to address a multitude
of issues, drawing up terms of use and contracts written in both Korean and English and determine patent-
related risks. Since law and patent firms tends to view small startups as minor customers, startups can
face certain limitations, including price and selective access to services. However, with the help of the
Born2Global Centre, SendBird was able to take a much more proactive approach toward requesting and
securing support and cooperation.
We attracted a total
investment of USD 16
million (KRW 17 billion)
from Shasta Ventures,
August Capital, and Justin
Kan, the co-founder of
Twitch.tv.
G’Audio Lab
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Henney Oh Developed products ▶ 3D audio and rendering solutions
Foundation date ▶ May 6, 2015 Website ▶ gaudiolab.com
Address ▶ 555 W 5th St, 35th Fl, Los Angeles, California, US 90013
2017
2016
2015
2014
•�October - Won Innovative VR Company of the Year Award at the VR Awards•�January - Officially launched 3D audio solutions
•�November - Established G’Audio Lab office in Los Angeles•�September - Attracted KRW 5 billion in Series A
investment from Korea Investment Partners, LB Investment, Softbank Ventures, and Capstone
•�July - Secured seed investment of KRW 1.1 billion from Softbank Ventures, Capstone, and the TIPS Program•�May - Spun off from the WILUS Institute of
Standards and Technology and established Gaudi Audio Lab
•�April - Started as Project GAUDI at the WILUS Institute of Standards and Technology•�January - MPEG-H 3D Audio adopted as an
international standard
29
North America, Asia, and Europe
Not disclosed
Staff
Overseas expansion
Sales
170 Success Stories of Born2Global Members Korea Startup Index 2017 171
Success Stories of Born2Global Members
G’Audio Lab creates the standard for next-generation 3D audioG’Audio Lab works with immersive media such as 360 video, virtual reality (VR) and augmented reality
(AR). The company began as a project (Gaudi Project) conducted by the WILUS Institute of Standards &
Technology, which was also founded by G’Audio Lab CEO Dr. Henney Oh.
At a conference on international video and audio standardization that was held in Barcelona in 2014, G’Audio
Lab’s core technology was selected to be the next-generation 3D audio standard(MPEG H 3D Audio),
beating out a number of multinational corporations. As a result, the spin-off Gaudi Audio Lab (G’Audio Lab)
was established in 2015.
Holding a Ph.D. in audio signal processing, Oh is a renowned expert in his field. He said, “The defining
characteristic of G’Audio Lab is its highly qualified audio research staff. Including myself, we have seven
Ph.D. holders who are fully immersed in technology research with the sole purpose of creating the world’s
most realistic 3D audio. Altogether, our research experience exceeds 100 years!”
Oh added, “Seven Ph.D. holders is quite a lot, even when compared to the size of the doctoral-level research staff
of global corporations. Our deep rooted audio industry expertise is the foundation of the company’s sophisticated 3D
audio technology and robust suite of products, which also sets apart from any other existing offerings.”
Sound is a crucial aspect in creating a virtual three-dimensional space. For immersive media such as 360
video and VR, where there is a high degree of interaction between content and the user, the audio must be
just as vivid as the video to provide a truly life-like experience. However, most existing 3D audio systems
create sound that seems to be coming from fixed sources, even when users turn their head or change
location. This limitation breaks the immersion and subverts the original purpose of immersive media.
G’Audio Lab creates highly realistic three-dimensional audio using binaural rendering technology that
mimics how we hear in real life. Oh said, “G’Audio Lab is a 3D audio solution company that helps one
distinguish depth, direction and movement of sound sources. Our technology surrounds one with highly
vivid, multi-dimensional sound using any regular headphones or earbuds.”
Based on this technology, the company provides post/live-production 3D audio solutions for both
content (movies, computer games, television programs, etc.) producers and publisher platforms. Its 3D
audio rendering SDK Sol, for example, can be embedded in any live or streaming players in order to offer
unparalleled sound quality via G’Audio’s proprietary audio format.
Within three years of its founding, G’Audio Lab received a large investment thanks to its outstanding
technology, high growth potential, and the promising nature of its business. In October 2016, it received
Series A investment from a number of distinguished Korean VC companies, including SoftBank Ventures,
Korea Investment Partners, LB Investment, and Capstone Partners.
Beating global giants to be adopted as a standard for next-generation 3D audio technology
3D audio: a necessity for realizing completely immersive experiences
Global recognition of technology spurs investment and debut in overseas markets
172 Success Stories of Born2Global Members Korea Startup Index 2017 173
Success Stories of Born2Global Members
Lunit Inc.
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Anthony Paek Foundation date ▶ August 2013 Website ▶ lunit.io
Developed products ▶ Deep learning-based medical image diagnostic software
Address ▶ 6F, 175, Yeoksam-ro, Gangnam-gu, Seoul
2013
2014
2015
2016
2017
•�August - Founded Lunit Inc.
•�June - Attracted investment of KRW 100 million from K Cube Ventures
•�August - Came in seventh place globally and first place domestically at the ImageNet Large Scale Visual Recognition Competition (ILSVRC), a global image recognition technology competition
•�November - Attracted investment of KRW 2 billion from Softbank Ventures and two other venture capital firms
•�December - Came in fifth place globally and first place domestically in the object recognition category at ILSVRC
•�August - Attracted investment of roughly KRW 3.7 billion from Intervest and other investment firms
•�October - Won first place in the TUPAC at MICCAI 2016•�November - Presented four research abstracts (more
than its peers in the industry) at the 2016 Meeting of the Radiological Society of America (RSNA 2016), the world’s largest radiological society
•�January - Selected as the only domestic startup on the list of CB Insights AI 100 (top 11 in the health care and top seven in the medical diagnostics categories)
•�April - Selected as one of the world’s top five “social impact” AI startups by NVIDIA
•�September - Ranked at the top at CAMELYON17•�October - Won “Most Committed Award” at Create@Alibaba
Cloud, a global startup contest - Chosen as one of the best three startups of the year at
the Softbank Ventures Forum
33Not disclosed
Staff
Sales
•����Papers: eight published in journals and presented at conferences
•����Registered four domestic patents
•����Filed 11 overseas patent applications
Other accomplishments
KRW
5.7 billion
Attracted investment
G’Audio Lab aims to expand the immersive media industry by distributing its 3D audio editing tool Works
for free of charge. It also holds workshops and events so that anyone can enter this new and competitive
field, building a greater people’s interest and ecosystems.
At the end of 2016, G’Audio Lab moved its headquarters to Los Angeles as the first step of its plan to target
the global content market?an aggressive move that was made possible by the investments it had received.
In October 2017, G’Audio Lab was honored with the “Innovative VR Company of the Year” award, alongside
multinational corporations such as Google and Facebook, at the VR Awards held in London.
Oh said, “We received high scores in all areas at the VR Awards, including technology, product usability,
and contribution to the industry. Immersive media is still an unfamiliar area for many, so we have been
enlightening content creators and platform providers and helping them solve critical problems for content
creation and consumption.”
The company’s proprietary audio format GA5 is so far the only way that a content creator’s intentions can
be delivered in their entirety. This is appreciated by content consumers who want to enjoy concerts, sports
and live events with superior audio quality.
At the forefront of the expansion of the immersive media industry
With the ultimate vision
of becoming the audio
standard for VR/AR
around the world,
G’Audio Lab expressed
its hope that its
technology will help the
friends and families of
its members and people
around the world find
greater happiness in their
everyday lives.
174 Success Stories of Born2Global Members Korea Startup Index 2017 175
Success Stories of Born2Global Members
Lunit Inc. has developed a deep learning-based technology for analyzing medical images that dramatically
lowers the rate of misdiagnosis. Currently, the AI technology is being subjected to a sophistication process
in cooperation with major medical institutions in Korea, including Seoul National University Hospital,
Severance Hospital of Yonsei University Health System, Samsung Medical Center, and Asan Medical
Center.
Anthony Paek, the CEO of Lunit, explained, “The data-driven imaging biomarker (DIB) technology that Lunit
proposed for the first time ever in 2015 is an AI system that has learned abnormal and clinically significant
image patterns from big data.” He went on to add, “Currently, DIB technology has achieved an accuracy
level comparable to that of human experts. In the future, however, we will have new DIB technologies
capable of outperforming humans.”
Lunit’s DIB technology, called Lunit INSIGHT, uses AI technology to analyze existing x-ray images to help
doctors make more accurate diagnoses. So far, the results of clinical trials have shown that using this
technology increases diagnostic accuracy by 14 percentage points. Based on deep learning, an AI skill-
building practice that makes use of big data and artificial neural network technologies, Lunit INSIGHT is
capable of accurately analyzing images. Paek explained, “Most medical imaging AIs have been directly and
With a medical AI research team consisting of 12 deep learning researchers and three medical doctors,
Lunit has developed the best deep learning and computer vision technologies in the world. At the 2015
ImageNet Large Scale Visual Recognition Competition, it ranked fifth in terms of object detection and
localization, surpassing the teams of Google and Tencent. Lunit’s technology has gained recognition around
the world through the company’s participation in international competitions, ranking first in the Tumor
Proliferation Assessment Challenge (TUPAC) in 2016 and Camelyon in December 2017. Also in 2017, Lunit
was also the only Korean company included on CB Insights’ “AI 100,” which ranks the 100 most promising
indirectly influenced by DIB technology. Since we now have access to the big data of hospitals and are
capable of processing DIB learning from various perspectives, the future potential of our company seems
quite high.”
Lunit’s AI interprets x-ray images and lowers the misdiagnosis rate
The top AI dream team in the world--better than those of Google and Tencent
Lunit Leads the Expansion of AI in the Healthcare Industry
X-rays are a form of electromagnetic radiation used to detect and diagnose various injuries and diseases,
such as bone fractures, lung cancer, and breast cancer. Compared to computed tomography (CT) and
magnetic resonance imaging (MRI) scans, x-rays are simpler and relatively less expensive. However, since
the images must still be interpreted by doctors, the technique still has one critical weakness: occasionally,
doctors fail to notice the signs of disease.
Developed AI-based medical imaging technology using big data and deep learning
Ranked highest in major computer vision
competitions around the world for the excellence of
its technology
Expected to release “Lunit INSIGHT,” an AI-based medical image analysis
program
Aims to apply its AI technology to all medical fields, including pathology
176 Success Stories of Born2Global Members Korea Startup Index 2017 177
Success Stories of Born2Global Members
AI companies in the world, and secured an investment from K Cube Ventures, SoftBank Ventures,
Formation 8, and Mirae Asset Venture Investment.
Lunit unveiled Lunit INSIGHT, its AI-based real-time medical image analysis software, at the end of
November at the Radiological Society of North America in Chicago. Able to accurately detect the signs of
major lung diseases, such as lung cancer, pneumonia, pneumothorax, and tuberculosis, from x-ray images,
Lunit INSIGHT rapidly processes medical images to provide results in only seconds after the images are
uploaded and boasts an accuracy of 98 percent. The software is expected to be used for clinical purposes in
hospitals and medical centers starting in the second half of 2018.
Lunit CEO Paek said, “Lunit INSIGHT is the first AI-based medical image analysis program in the world that
has been released in a final, usable state. Through this release, we plan to expand the basis for the industry
so that more medical professionals can gain easy access to such image analysis software.” In the first
half of the next year, Lunit is expected to unveil a mammography solution that allows doctors to use Lunit
INSIGHT for the early diagnosis of breast cancer.
In the short term, we
will focus on improving
the regulations related
to the development and
utilization of AI. In the mid
to long term, however, we
will present fundamental
ideas for transforming
Korea into a leader rather
than a follower.
TwoEyes Tech, Inc.
Company Information SUMMARY
Timeline State
CEO ▶ Song HunJoo Developed products ▶ VUO, a 3D 360° VR camera
Foundation date ▶ July 10, 2014 Website ▶ vuo360.com
Address ▶ 1408-4, O’biz Tower, 126, Beolmal-ro, Dongan-gu, Anyang, Gyeonggi-do
2014
2015
2016
2017
•�July - Founded as a corporation•�September - Established dedicated R&D department - Won a prize at the Small and Medium Business
Administration’s Innovative Technology Show•�November - Registered as a software business
•�March - Certified as a venture firm•�September - Won the grand prize (Minister’s Award) at the
Contents Startup League, hosted by the Ministry of Culture, Sports and Tourism
•�June - Selected as one of the top 100 startups at Singapore’s Echelon Asia Summit 2016•�August - Changed corporate name to TwoEyes Tech, Inc. - Established a subsidiary in the United States•�November - Won third prize at the Gyeonggi Center for
Creative Economy & Innovation’s “IoT Biz Factory Demoday”
•�January - Participated in CES2017•�June - Jointly won the K-ICT Born2Global Centre’s “Go-To-
Market Demo Day”•�July - Selected to be a member company of the K-ICT
Born2Global Centre•�August - Came in first place in the K-Startup Investment Parade,
hosted by the Seoul Center for Creative Economy & Innovation
- Selected as one of the 14th groups of alumni of POSCO’s Idea Marketplace
•�September - Selected as the 10th alumni of SparkLabs•�November - Selected as the sixth alumni of the Gyeonggi Center for
Creative Economy & Innovation’s K-Champ Lab - Won a CES 2018 Innovation Award for its 3D 360° VR
camera
3Not disclosed
Staff
Sales
About USD 200,000 through Kickstarter crowdfunding campaign
Other accomplishments
50 countries, including the United States
Overseas expansion
178 Success Stories of Born2Global Members Korea Startup Index 2017 179
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TwoEyes Tech’s technology for shooting in various modes using two pairs of fisheye lenses has
already started gaining recognition around the world. In November, the company was granted a CES
2018 Innovation Award, which is given to companies that have developed products that meet certain
standards of innovation, functionality, design, and other criteria at the world’s largest annual trade
show.
General consumers also began showing interest in TwoEyes Tech as well. The company’s recent
crowdfunding campaign on Kickstarter managed to secure investments from 699 backers totaling
nearly USD 190,000, which is almost five times more than its original goal of $40,000 USD. In the
coming year, the company is planning to begin official sales through mass production, and another
funding project on Makuake, a Japanese crowdfunding site, is in the works as well.
Song HunJoo, CEO of TwoEyes Tech said: “We are planning to revamp our product name for a more
global audience once we start mass producing and selling the cameras. The challenge we are facing
now is to create a quality product that functions well and is easy to use.”
A pair of lenses captures mass appeal and innovation
TwoEyes Tech, 360-degree virtual reality that can be viewed easily and comfortably
TwoEyes Tech is a startup that has developed a binocular 360-degree field-of-view VR camera that
captures images using two pairs of fisheye lenses arranged 65 millimeters apart, just like the eyes of a
human, thus allowing for a more comfortable VR experience.
TwoEyes Tech made sure that the VR images it produces mirrors human eyesight by taking the standard
distance between human eyes into consideration when capturing the images. As a result, the images
show a three-dimensional representation of the world as people see it. In only one filming session, the
VR camera captures 360-degree 3D video that can be viewed on VR headsets, smartphones, computer
monitors, and 3D TVs. The videos, in full HD, 3D, and red-cyan mode, can be converted from and into
180-degree and 360-degree content, meaning that a single recording can be converted into six different
types of content.
Moreover, filming with the camera is quite easy. When held horizontally, the camera records in binocular
mode; when held vertically, it records in monocular mode. The recordings it produces can be viewed
immediately on a smartphone or uploaded to social media.
Successfully developed binocular 360-degree
field-of-view VR camera
Recognized at CES for innovative design and
engineering
Aims to become the global standard for VR
video capture
We are planning to
revamp our product name
for a more global audience
once we start mass
producing and selling the
cameras. The challenge
we are facing now is to
create a quality product
that functions well and is
easy to use.
180 Success Stories of Born2Global Members Korea Startup Index 2017 181
Success Stories of Born2Global Members
Buzzvil
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ John Lee, Young Lee Developed products ▶ Mobile lockscreen advertising platforms
Foundation date ▶ May 8, 2012 Website ▶ buzzvil.com
Address ▶ 2F, 3F, and 5F, Daelim Bldg., 272, Seokchonhosu-ro, Songpa-gu, Seoul
2013
2014
2015
2016
2017
•�January - Launched mobile lockscreen advertising application “HoneyScreen”
•�June - Released HoneyScreen in Japan•�December - Attracted KRW 3 billion in Series A
investment from Softbank Ventures
December - Recorded annual sales of KRW 4 billion, showing a turnaround in operating profit
•�May - Launched the mobile lockscreen advertising platform “BuzzScreen,” which went on to secure Ok Cashbag as a partner
•�October - Selected as Best Portfolio in 2015 at the Softbank Ventures Forum
•�December - Attracted KRW 13 billion in Series B investment from LB Investment, KTB Network, POSCO Technology Investment, ES Investor, and Company K Partners and reported annual sales of KRW 9.6 billion
•�October - Expanded partners of BuzzScreen to 20 companies, including BC Card, L.Point, KT’s WhoWho and Clip Card, and T-money.
•�November - Acquired American lockscreen advertising company Slidejoy, securing 12 million global users
•�December - Posted global annual sales of KRW 25 billion
•�July - Provided lockscreen advertising service in 27 countries worldwide
•�August - Secured 17 million global users
70Domestic sales of KRW 2.1 billionGlobal sales of KRW 25 billion2017 global sales of KRW 35 billion
Staff
Sales
27 countries, including the United States, Japan, Taiwan, Germany, and the United Kingdom
Overseas expansion
Song aims to expand TwoEyes Tech’s business from VR cameras to video-related software, to which his years
of experience in the computer graphics and 3D video industry can be applied to create a growth engine for the
company. In addition to its VR cameras, TwoEyes Tech is planning to unveil a VR video editing program as well.
The reason Song decided on a VR camera as the product with which TwoEyes Tech would enter the
overseas market lies in his career experience as well. Prior to founding TwoEyes Tech, Song worked
as a developer, creating a VR application called “ARC Interactive.” As the VR market began growing,
Chinese companies such as Huawei requested the production of VR cameras that could be embedded in
cellphones, and thus TwoEyes Tech was born.
“When I received those requests from Chinese companies, I immediately thought that was something that had
market demand,” remarked Song. “So, we started developing a VR camera in cooperation with Intops and other
manufacturers, based our determination to create a product that could be competitive in the global market.”
Aside from VR cameras, TwoEyes Tech also plans to unveil multi-angle cameras that can film at various angles
simultaneously and playback the recorded videos freely. The next product in the works is TwoEyes Hover, which
allows the user to change the direction of the camera by simply touching the display and quickly rotate the
camera by swiping across the screen. The company’s goal is to allow people to create 360-degree videos like
those in the Matrix movie without having to use special filming techniques or effects.
Song commented, “Our goal is to grow into a company that can shake up the VR camera market. My main
goals, however, are to contribute to the growth of the VR industry and improve upon our technology so that
it can become the standard for VR video capture.”
Aiming for video software beyond VR
CEO Song said, “Our goal
is to grow into a company
that can shake up the
VR camera market. My
main goals, however,
are to contribute to the
growth of the VR industry
and improve upon our
technology so that it can
become the standard for
VR video capture.
(as of end of 2016)
KRW 160billion in total
•Major investors - Softbank Ventures - LB Investment - KTB Network - POSCO Technology Investment
1.7million people
Attracted investment
Total global users
182 Success Stories of Born2Global Members Korea Startup Index 2017 183
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products as well, while users can watch advertisements and earn reward points.
In May 2015, Buzzvil partnered with OK Cashbag to provide its BuzzScreen service and expanded its
partnerships with telecommunications companies and various other companies that offer loyalty programs.
Currently, Buzzvil has over 40 partners in Korea, including OK Cashbag, BC Card, T-Money, KT WhoWho,
Lotte L.Point, and 11st.
Buzzvil is now expanding its business beyond Korea to the United States, Japan, and other Asian and
European countries. To launch its service in the United States, Buzzvil acquired SlideJoy, an American
mobile lockscreen advertising company, in November 2016. HoneyScreen is a service that targets mainly
Asian users, while SlideJoy is its equivalent for North American and European users.
Currently, Buzzvil has 70 employees and is operating overseas branches in the United States, Japan, and
Taiwan. After advancing into the United States in 2014 to conduct research on and develop advertising
technology, Buzzvil is now expanding its business in the American market through SlideJoy.
Prior to entering the United States, Buzzvil began operating in Japan in May 2013 with its HoneyScreen
application, and released BuzzScreen more recently in the second quarter of 2017. The company is
expected to maintain stable growth in Japan, having reached the break-even point with HoneyScreen in the
third quarter of 2016. Starting in 2018, Buzzvil’s growth is also expected to pick up pace in Taiwan, where
the company began operating in 2015.
Based on Lee’s goal of creating the first mobile lockscreen ecosystem, Buzzvil unveiled BuzzScreen, a
business-to-business (B2B) model, following its HoneyScreen product.
BuzzScreen is provided to partner companies as a software development kit (SDK). When a partner
company installs the BuzzScreen SDK on their application, the users of the application will be able to use
the reward advertising platform on their lockscreens without having to install a separate application. Partner
companies receive a share of the marketing profits and use a part of the lockscreen to promote their own
Taking on the world with HoneyScreen and BuzzScreen
Dreaming of the first mobile lockscreen ecosystem
Buzzvil enters the global market with mobile lockscreen advertising
Buzzvil provides a mobile lockscreen advertising service. Upon its founding, Buzzvil first considered
providing a service through which compensation is provided to people who participate in viral marketing
campaigns on social media sites. The two founders named the company “Buzzvil” to signify the “buzz” they
would create through this viral marketing platform.
In the preparation stage, however, changes were made to the plan and the current service became the
company’s main product. Buzzvil CEO John Lee said he got the idea for a lockscreen advertising service
from the screen doors on subway station platforms.
In terms of their global
service, HoneyScreen
and SlideJoy are like
shock troops. Once we
collect enough data to
identify the preferences
and patterns of the users
of each country, we
will be able to create a
platform for entering B2B
partnership services.
184 Success Stories of Born2Global Members Korea Startup Index 2017 185
Success Stories of Born2Global Members
MINDs Lab
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Yoo Taejoon Developed products ▶ AI platform “maum.ai”
Foundation date ▶ January 1, 2014 Website ▶ mindslab.ai
Address ▶ 6F, Dasan Tower, 49, Daewangpangyo-ro 644beon-gil, Bundang-gu, Seongnam, Gyeonggi-do
2014
2015
2016
2017
•�January - Launched MINDs Insight, a social big data analysis platform service•�February - Chosen as one of the companies to receive
customized technical support from ETRI (Electronics and Communications Research Institute), sponsored by the Ministry of Science and ICT (formerly Ministry of Science, ICT and Future Planning)•�April - Released MINDs MI, an industry-specific market
intelligence service•�May - Undertook the second-year task of the Exobrain project.•�July - Launched i-VOC, a VOC (Voice of the Customer)
analysis solution that made it onto the list of the top 100 national research and development accomplishments
•�August - Succeeded in attracting investment from a venture capital firm•�November - Undertook an R&D project to “develop deep
learning-based smart home voice-recognition device technology”
•�June - Launched a lineup of AI platform products •�July - Succeeded in attracting investment from another
venture capital firm
•�January - Vice Minister of the Ministry of Strategy and Finance paid a visit to MINDs Lab and said, “The Ministry will work to loosen control in response to the emergence of the Fourth Industrial Revolution”•�February - Won Minister’s Award from the Ministry of Science
and ICT (formerly Ministry of Science, ICT and Future Planning) at the 2016 Technology Commercialization Awards•�May - Officially unveiled AI platform maum.ai•�August - Forged strategic business alliance with Ibiz Academy•�September - Won Recognition of Excellence Award at ITU
Telecom World
110Approx.
10 billion
Staff
Sales
•����Won Recognition of Excellence Award at ITU Telecom World 2017, which was organized by the ITU (International Telecommunication Union), an agency of the United Nations•����Made it onto the list of the top 100 national research
and development accomplishments in 2014•����Won the grand prize in the category of
“excellent cases of public technology commercialization” at the 2016 Technology Commercialization Awards for the Special Research and Development Zones•�Included on Forbes Asia’s list of “10 South
Korean Startups Breaking Out in 2017”•�Selected as one of the second group of
alumni of the 2016 K-Global ICT promising technology development support businesses by the Ministry of Science and ICT (formerly Ministry of Science, ICT and Future Planning)
Major Accomplishments
KRW
5.7 billion
Attracted investment
United States (New York and Silicon Valley) and Canada
Overseas expansion
While emphasizing that the
lockscreen ad service is one
of the services “made in
Korea” that could become
such a success case, Lee
said overseas expansion
was necessary for ensuring
South Korea’s success and
prosperity in the future.
(as of end of 2016)
Having doubled its sales every year so far, Buzzvil’s sales are expected to grow from KRW 20 billion in 2016
to KWR 35 billion in 2017. This incredible growth is being driven mainly by the dramatic increase in overseas
sales rather than domestic sales.
CEO Lee said, “Our growth has doubled every year in Korea. Although we are now only in the early stages
of signing partnership agreements with foreign companies, I believe that our incredible growth will continue
overseas as well.” Lee’s goal is to increase the company’s share of foreign sales from the current 20
percent to around 40 percent.
It was this goal that drove Buzzvil to plan its B2B service model, BuzzScreen, and register for the global
patent. The company also hired foreign developers to create a more global UX design in the development
stage and looked for local partners in its overseas advancement stage as well.
Doubling growth every year and increasing share of sales overseas
186 Success Stories of Born2Global Members Korea Startup Index 2017 187
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MINDs Lab is an AI platform company that provides an integrated AI solution, including everything from
core algorithms to AI consulting services. With the onset of the AI era, many companies wish to provide
intelligent chatbots, smart call centers, VR consultants, smart machines, AI-based education, and other
various AI services. However, it is very challenging for most companies to offer such services, as they do
not have the resources of large conglomerates and lack technical proficiency and cost efficiency. Moreover,
maintenance and repair are just as difficult for them as development. To support these companies to move
forward in AI business, MINDs Lab provides evolutionary AI platform “maum.ai” which serves as a platform
to implement a variety of AI services. The company also provides various AI services on top of the platform
in a modular approach, which are readily available so that companies can use its AI services on an as-
needed basis.
maum.ai platform consists of six modules, including Brain, an AI engine that functions independently; M2U,
MINDs Lab’s advanced technology has been receiving significant attention both at home and abroad. In
September, the company was recognized as the best and most innovative small and medium enterprise
at ITU Telecom World 2017, hosted by the International Telecommunications Union (ITU), where it was
the only Korean company to be selected. MINDs Lab was also included on Forbes Asia’s list of “10 South
Korean Startups Breaking Out in 2017” earlier this year.
which processes input and output commands for various interfaces and devices; MLT, which provides a training
platform for machine learning algorithms; BOT, a chatbot module; and BIZ, a business application optimized
for different business areas that provides analyses of customer reviews and real-time customer support.
These modules can be assembled in a plug and play manner and provide customized AI services for each
company. So far, MINDs Lab has participated in KEB Hana Bank’s text-banking AI project, developed the first AI
platform-based civil complaint service with Daegu Metropolitan City, developed AI chatbot for Samsung Gear S,
implemented AI call centers with various customers and is now applying its technologies and services to various
industries, including finance, communications, manufacturing, and public services.
MINDs Lab CEO Yoo Taejoon explained, “MINDs Lab is a comprehensive AI platform company that handles
all aspects of the general AI value chain, from the most basic technological elements to platforms, platform-
based smart machines, vertical business applications and expert consultations. By doing so, we are able
to provide companies that wish to adopt AI-based innovation with a more time and cost-efficient way of
introducing AI services.”
maum.ai platform understands people’s emotions
Engaged in competition based on technological capacity and earned the “attention” of the UN and Forbes
MINDs Lab mesmerizes the world with innovating AI technology and services
Provides customized AI services optimized for
each industry and service using AI modules
Operates various research centers focused
on linguistic and visual intelligence
Provides the latest AI services through prompt
updates
Attracted the attention of Forbes and the UN with its incredible idea and
technology We attracted a total of
KRW 4 billion in investment
from KEB Hana Bank and
KDB Bank in 2017 alone.
So far, we have secured a
total investment of KRW 9
billion.”
188 Success Stories of Born2Global Members Korea Startup Index 2017 189
Success Stories of Born2Global Members
These achievements were the result of MINDs Lab’
s establishment of its own research lab and efforts to
further hone its technologies. Currently, 200 employees
of MINDs Lab and related companies in four different
countries are working to develop new technologies,
and MINDs Lab is independently operating R&D labs
specializing in various fields of AI, including linguistic
intelligence, visual intelligence and smart machines.
All we have is the concept
of the service, but we hope
to transform ourselves into
a portal, where necessary
information can be gained
not through a text search
but via an AI-based Q&A
service.
Riiid Co., Ltd.
Company Information SUMMARY
COMPANY HISTORY CURRENT STATUS
CEO ▶ Jang Young Jun Foundation date ▶ May 2014 Website ▶ riiid.co
Developed products ▶ “Santa TOEIC,” a machine learning-based education platform
Address ▶ 4F, Geundo Bldg., 37, Yeoksam-ro 25-gil, Gangnam-gu, Seoul
2014
2015
2016
2017
•�May - Founded Riiid•�June - Selected to participate in the Global K-Startup Program by the
Ministry of Science, ICT and Future Planning and Korea Internet & Security Agency
•�July - Selected as a K-Startup company•�August - Attracted investment from SK Planet and the Banks
Foundation for Young Entrepreneurs•�December - Officially approved for technology guarantee and venture
firm certification
•�January - Attracted investment from TheVentures - Launched beta version of the “Renote!” service•�March - Selected for the TIPS Program, which supports accelerators
and tech startups based on private investment•�July - Selected as a startup in the “Value Up” category at the 2015
K-Global DB-Stars event•�September - Attracted investment from D3jubilee•�November - Won first prize (Korea Data Agency’s President Award)
in the “Value Up” category at the 2015 K-Global DB-Stars event
•�January - Launched beta version of the “Santa for TOEIC!” service - Attracted Series A investment from DSC Investment, DS Asset
Management, and Shinhan Capital•�April - Won the grand prize in the education category at the 2016
Korea Mobile Award•�July - Signed a cooperation agreement with KAIST to conduct joint
research on machine learning algorithms•�October - Filed a patent application for algorithms creating questions
customized for machine learning•�November - Presented a paper on AI algorithms at the Neural
Information Processing Systems (NIPS) conference•�December - Took top spot at the 2016 K-Global@Beijing event
•�April - Attracted Series A2 investment from DSC Investment, ES Investor, and Daesung Private Equity
•�June - Officially launched “Santa for TOEIC!”•�October - Came in first place in the consumer satisfaction category
at the 2017 KQSI Awards•�December - Won first prize in the education/culture ? language study category
at Asia Smart App Awards 2017 - Won Minister’s Award from the Ministry of Science and ICT at the
First Fourth Industrial Revolution Awards
32Not disclosed
Staff
Sales
•������Signed joint research contract with KAIST in July 2016
•������Submitted a paper to the 2016 NIPS academic conference
•������Filed two patents on machine learning
•������Signed an MOU on business partnership with LGU+
Other accomplishments
KRW
4.5billion
Attracted investment
In the near future, MINDs Lab plans to focus on
providing AI services in SaaS (software as a service)
environment. Currently, the company has proven
success in providing an on-site platform for companies
to install the software and platform on their local
servers, for information sensitive industries such as
finance and governments. Leveraging these successes
and experience, MINDs Lab plans to expand its business not only locally but also for global markets through
SaaS platforms and services. Currently, MINDs Lab is drawing up strategies to provide these services for
their global clients.
Going further, MINDs Lab’s vision is to go beyond providing an AI platform ? to become an AI portal
company. In particular, the company will focus its efforts on developing an AI portal based on machine
reading comprehension (MRC) technology, which enables computers to understand the context of texts
and answer questions. It expects that MRC will fundamentally change the way in which users acquire
information. Moreover, MINDs Lab aims to provide AI-based call center BPO and AI-based education
services not as B2B but as B2BC or B2C services.
CEO Yoo of MINDs Lab remarked, “MINDs Lab has managed to increase its competitiveness by smoothly
transitioning from big data to deep learning and then to AI. Currently, all we have is the concept of the
service, but we hope to transform ourselves into a portal, where necessary information can be gained not
through a text search but via an AI-based Q&A service.”
Going beyond an “AI platform” to provide an “AI portal”
190 Success Stories of Born2Global Members Korea Startup Index 2017 191
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Based on his experience in Silicon Valley, Jang shifted his focus to education. Explaining how he came
to found Riiid!, he said, “While many aspects of our lives have been improved thanks to the remarkable
developments in IT, the rote-learning framework of our education system, under which the same
information is delivered to all students uniformly, has seen little change despite the introduction of Internet
lectures. I wanted to change the paradigm of the education market by providing personalized learning
services based on data mining and machine learning technologies.”
Riiid! has developed “Renote,” a smartphone application that makes it easy for students to identify and
manage all the incorrect answers they gave on worksheets, and created an adaptive learning algorithm
in January 2015. Based on this algorithm, Riiid! developed the adaptive-learning platform “Santa,” and
released “Santa TOEIC,” a customized learning platform optimized for the TOEIC exam as its first project,
which was commercialized and released in September 2017.
An educational service that features an AI tutor, Santa TOEIC was developed jointly by the research teams
of Riiid!, UC Berkeley, KAIST, and Seoul National University. Created using data on 30 million questions and
answers from 450,000 users acquired through R&D and beta tests, Santa TOEIC provides customized and
optimized learning methods for individual users.
Riiid!’s service provides questions that serve to strengthen the user’s particular weaknesses based on
data collected from 30 questions answered by the user. It predicts the questions the user will probably get
wrong and asks those questions. It also suggests optimized means of learning to increase one’s score as
quickly as possible by introducing concepts that the user does not have a good grasp on. CEO Jang said, “The
first Santa TOEIC we created provided customized learning based on an existing algorithm, but it became
the product it is now only after we collected data through user interaction.”
The accuracy rate of question prediction based on the machine-learning algorithm applied to Santa TOEIC
currently exceeds 90 percent. After the user answers 30 diagnostic questions, the AI analyzes the answers
and accurately predicts more than 90 percent of the time which questions the users will get wrong and
which wrong answer they will choose. Based on these predicted values, the AI then calculates which
questions and lectures will increase the user’s scores as much as possible. Ultimately, Santa TOEIC uses AI
technology to construct a personalized curriculum for each user to raise users’ scores based on the results
of the users’ answers to each question.
Founded edutech startup after seeing opportunity in Korea’s rote-teaching education market
Provides optimal learning method for users and “predicts wrong answers”
Riiid! changes the education paradigm with one-on-one AI teacher
Founded by the current CEO, Jang Young Jun, in 2014, Riiid! is an AI-based edutech startup whose most
competitive product is its machine learning-based “customized learning” service. Jang holds a degree in
Business Administration from UC Berkeley and has business experience in Silicon Valley. Based on his
diverse range of experience, he founded Riiid! after returning to Korea and has been innovating the country’
s English education market ever since.
A significant amount of R&D effort and the application of machine learning were necessary to complete
Continuous R&D achievements lead to billions of Korean won in investment
192 Success Stories of Born2Global Members
the technology. In the process, the research team led by Riiid! and Suh
Changho, a professor of KAIST, presented a paper titled “Machine learning-
based user analysis and problem-recommendation algorithm” at NIPS
(Neural Information Processing Systems) 2016, a global conference for
neural network-based AI research that was sponsored by 34 global firms,
including Google, Apple, Facebook, Alibaba, and Oracle. Riiid!’s research
achievement, based on real user data, has attracted the attention of
academics and resulted in the company fielding calls from interested
domestic and foreign investors.
In June 2017, Riiid! attracted additional investments from the Korean
venture capital firms DSC Investment, ES Investor, and Daesung
Investment, coming one year after the company attracted Series A
investment totaling KRW 2 billion from DSC Investment, DS Asset, and
Shinhan Capital in 2016. DSC Investment then went on make an additional
investment the following year, along with the first investments made by
ES Investor and Daesung Investment. Riiid!’s unique achievements in AI
technologies applicable to various multiple-choice tests, such as TOEIC,
TOEFL, and SAT, and market expansion strategies were key factors in the
investors’ decisions.
“Many investors identified with our vision of using our technology to
replace teachers in cram schools and the private education market with AI
tutors,” explained Jang. “We also earned positive reviews for reaching our
milestones according to schedule.”
Riiid! has dramatically revamped its content, system, and services for the
peak season (winter vacation). In 2018, the company hopes to achieve
even more in the Korean market through Santa TOEIC and start offering its
services in China as well.
Becoming a global service, achieving success in the Korean market, and entering the Chinese market
Afterword
www.born2global.comwww.facebook.com/born2globalwww.linkedin.com/company/born2global
▶ Afterword
Afterword 6
Korea Startup Index 2017 197
Afterword
The first venture capital boom in the late 1990s and the second in the late 2000s were different in
many ways, but the main difference was the debate surrounding the existence of the “tech bubble.”
During the first venture capital boom, there was endless debate on the tech bubble, which eventually
did burst, causing significant damage to countless investors and workers. During the second venture
capital boom, however, very little concern has been expressed regarding another tech bubble, largely
because this time there are relatively fewer indiscriminate IPOs, less excessive speculation, and more
moral responsibility among entrepreneurs.
However, this does not necessarily mean that the second venture capital boom is any less intense than
the first. Since 2009, an average of 2,000 venture-backed companies have been founded every year,
bringing the total number of venture-backed companies in South Korea to over 35,000 by 2015. The
number of venture-backed companies registered in Korea recorded 34,281 in the first half of 2017, and
that number increased to a tentative 35,140 as of the end of November 2017.
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
*source Korea Venture Business Association (KVBA)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017.6
8,79
8 11,3
92
8,77
8
7,70
2
7,96
7
9,73
2
1,22
18
14,0
15
15,4
01 18,8
93
24,6
45
26,1
48 28,1
93
29,1
35
29,9
10
31,2
60 33,3
60
34,2
81
Afterword
Conclusion of the Korea Startup Index 2017
Number of Venture-Backed Companies Founded by Year
198 Afterword
Venture-backed companies are often highly effective in creating jobs. Companies that receive venture
capital investments generate up to four times more employment than non-venture-backed SMEs.
Early-stage startups and companies started by young people tend to create more jobs than others.
According to the Ministry of SMEs and Startups, from 2012 to 2016, venture-backed companies
created about 30,000 new jobs and maintained the employment of 140,000 people as of the end of
2016. In addition, venture-backed companies saw an annual average increase of four to 19.9 percent
in their number of employees over the same period, which is up to four times higher than the annual
average increase in employees at SMEs (4.5 percent as of 2014).
In line with the growth of venture-backed companies in South Korea, venture capital investment is
increasing rapidly as well, contrary to the subdued performance of venture investment in the global
market. According to the Korean Venture Capital Association, new venture capital investment reached
KRW 1.8375 trillion as of the end of October 2017, showing a 9.8-percent increase compared to the
record-breaking investment made in the same period in 2016 (KRW 1.6729 trillion).
However, although venture investment is increasing rapidly and venture-backed companies are highly
active, only a small number of companies have been successful in the global market. Among them,
Coupang, Woowa Brothers Corp., Yello Mobile, and Viva Republica have shown potential in the global
market, allowing them to attract investments from overseas investment firms, and a few startups have
been doing quite well in Indonesia, India, and other emerging markets. Nonetheless, only a handful of
venture-backed companies have created products or services that have gained attention in the global
market.
Considering the short history of startups in South Korea and the increasing number of startups that are
venturing overseas despite their lack of experience in the global market, there is plenty of potential
for Korean startups in the global arena, particularly for companies such as: Hyperconnect Inc., the
developer of the video chat service Azar, which now has more than 100 million users round the globe;
Vonvon, a media content company; Neofect, a developer of rehabilitation solutions that focuses on
the overseas market; and NBT, the developer of CashSlide, which has become the top lockscreen
advertising application in China.
While the computer-based Internet revolution drove the venture capital boom of the late 1990s, the
current smartphone-based mobile revolution has been leading the current venture capital boom since
the late 2000s. What differentiates this second boom from the first is the existence of a single global
market, which was impossible to imagine during the computer era but has become a reality through
Google Play and the App Store. And it has not even been a decade since we started competing in this
new global market. We are very hopeful that this year’s Korea Startup Index will provide the necessary
foundation for those who are dreaming of founding a global startup and entering the overseas market.
Date of Publication February 2018
Publisher K-ICT Born2Global Centre
4F, Startup Campus Building #3, 20, Pangyo-ro 289 beon-gil, Bundang-gu,
www.born2global.com
www.facebook.com/born2global
www.linkedin.com/company/born2global
Design and Printing Hwang Won Hee, Shinhwa-adcom and Kyungsung Munhwasa
※ The copyright of this book belongs to Born2Global.
Anyone wishing to use the content of this book must seek permission
in advance from the copyright holder.
Korea Startup Index 2017
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