Startup Breaks Through 'Donmaekgyeonghwa'... Investment and Support Programs Follow One After Another

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[Asia Economy Reporter Kim Cheol-hyun] Since the outbreak of the novel coronavirus infection (COVID-19), various investment and support programs have been announced one after another to break through the 'financial paralysis' experienced by domestic startups due to the contraction of investments. This is based on the evaluation that innovative ventures and startups have demonstrated the capability and potential to lead new economic models in the post-COVID era during the crisis recovery process caused by COVID-19.

First, the government has decided to establish the 'Smart Korea Fund' to proactively respond to the new economic order triggered by COVID-19 and to foster venture companies and startups in the post-COVID era. This fund is intended to focus investments on new industries highlighted after COVID-19, such as non-face-to-face (untact) and online sectors, artificial intelligence (AI) and big data, and biotechnology. It is planned to be established as a public-private joint fund, with private capital including mentor companies participating from the formation stage alongside the Korea Fund of Funds.

Private sectors are also actively launching startup investment and support programs. Wadiz recently launched the 'Find Startup' service, which connects startups and investors. This service, based on the concept of a startup business card, provides essential information for investment, including company information and profiles with video content, sharing, and requests for investment relations (IR), all free of charge through the Wadiz app. Various startup investors, including venture capitalists, government agencies, angel investors, and accelerators, will be able to access IR materials of over one million domestic companies through this service.

The Ventures, an early-stage startup specialized investment firm, launched the 'Impact Collective Investment Program.' Impact Collective is a community-driven investment and accelerating program aimed at discovering and nurturing startups that solve global social issues, investing by considering not only corporate profits but also the social and environmental impact of companies. This program has general partners in four Asian countries including South Korea, Thailand, Singapore, and Vietnam, and will be conducted simultaneously across Asia from the 25th of this month until the end of November. Up to 100 startups focusing on opportunities in the Asian region will be selected. Participating teams will be offered investment opportunities totaling $5 million from the dedicated Impact Collective Fund.

Shared office provider SparkPlus recently signed a Memorandum of Understanding (MOU) with NH Nonghyup Bank and global accelerator SparkLabs to support investment and nurturing of innovative startups. Through this agreement, the three parties will support ▲ discovery of innovative startups based on digital new technologies ▲ support for innovative startup residency and growth mentoring ▲ support for innovative startup IR and investment linkage ▲ activation of mutual exchanges to expand support for the startup ecosystem ▲ networking for overseas expansion of nurtured companies.