Promising Environmental Startup and Venture Support Project... First Launch This Year
Discovering and Nurturing 1,000 Eco Startups by 2025
Up to 100 Million KRW in Commercialization Funding for Early-Stage Startups
On the 4th, the 100-member national evaluation panel participating remotely and the on-site judges are conducting the final competition at the Ministry of Environment's '2020 Environmental Startup Competition' held at Jeongdong 1928 Art Center in Jung-gu, Seoul.
[Asia Economy Reporter Kim Bo-kyung] Startups in the South Korean entrepreneurship market can be likened to sailors navigating a vast ocean. However, the purpose of the startup voyage is clear: to become a unicorn company with a corporate value exceeding 1 trillion won. Although the goal is clear, the startup journey is difficult and daunting without a map, and since the outbreak of COVID-19, it has been swept up in even fiercer storms. Major startup-related events both domestically and internationally have been scaled down or canceled, causing difficulties in attracting investment and managing businesses. However, for startups equipped with eco-friendly ideas and technologies, the recent rise of environmental issues as a critical concern has turned the COVID-19 crisis into a business opportunity.
This year, the Ministry of Environment launched the 'Eco Startup' support project for promising startups and venture companies in the environmental sector for the first time. To support green ideas and challenges from entrepreneurs who will lead the Green New Deal, the ministry aims to discover and nurture 150 eco startups by next year and a total of 1,000 by 2025. Prospective entrepreneurs with green ideas receive up to 50 million won in commercialization funds and are connected with dedicated mentors for close support throughout the startup process. Through a three-stage competency enhancement education program covering six areas including startup, management, and market development, they help establish a foundation for growth.
Especially for early-stage startups within three years of establishment, up to 100 million won in commercialization funds is provided along with detailed diagnosis and analysis of the overall business, supporting sustainable management through securing commercialization funds. The Eco Startup support project is optimized to increase the startup rate in the environmental sector and help companies overcome the "death valley" through customized startup support programs.
The Ministry of Environment is expanding participation opportunities to the general public and students to gather eco-friendly ideas. This is like selecting good seeds from a seed basket to sprout the seedlings called Eco Startups. To this end, the ministry holds the annual 'Environmental Startup Competition' to discover promising startups and seek ideas to overcome environmental crises.
On the 4th, the final competition and awards ceremony of the '2020 Environmental Startup Competition' were held at the Jeongdong 1928 Art Center in Jung-gu, Seoul. To prevent the spread of COVID-19, the event was conducted non-face-to-face and simultaneously broadcast live online. Six teams in total?three top teams each from the idea and promising company categories?made final presentations in front of 100 citizen judges, and rankings were determined by combining scores. This year’s competition saw a record-high average competition rate of 18 to 1 with 458 teams applying.
The 'WeFlat Team,' which took first place in the promising company category, received high praise for its intelligent leakage management platform service technology and was awarded 50 million won and the Minister of Environment Award. The 'Kim Min-seok Team,' which won first place in the idea category, received favorable reviews from judges for its technology to resource sewage sludge drying materials and was awarded 30 million won and the Minister of Environment Award. Final winners of the Environmental Startup Competition are provided with startup spaces within the Environmental Industry Research Complex, supporting research, demonstration experiments, and prototype production.
At this event, past winners also participated to share experiences on overcoming early startup difficulties. In a special lecture titled 'Live Class for Future Innovators,' Kim Jung-bin, CEO of Superbin, who succeeded in founding a startup with an 'AI recycling vending machine' that sorts and collects resources at the emission stage using artificial intelligence (AI) technology, served as the instructor. Last year’s grand prize winner and CEO of Stars Tech, Yang Seung-chan, who produces and sells 'eco-friendly construction materials made from starfish,' provided commentary and coverage of the final awards ceremony broadcast on YouTube.
The Ministry of Environment aims to play a directional role to minimize trial and error at the early stages of promising startups and venture companies that will lead the Green New Deal. In addition to providing practical support to entrepreneurs through step-by-step customized support programs, the ministry plans to vigorously foster environmental venture and startup companies based on the expanded budget this year. The Eco Startup support project received 6 billion won in additional supplementary budget this year and will invest 11.25 billion won next year.
Minister of Environment Cho Myung-rae said, "For us to keep pace with the new era’s wave of green transition, it is important that startups in the environmental sector become active," adding, "We will significantly expand support so that the innovative ideas and bold challenges of entrepreneurs aiming to solve environmental problems lead to green transition and green jobs."
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