Gyeongnam Province Supports Startup Companies in Fundraising through Public Investment

Recruitment Open Until March 5 for Startup Companies Under 7 Years in Gyeongnam Region

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Gyeongsangnam-do is publicly recruiting companies to participate in the 'Gyeongnam Technology Startup Crowdfunding (Public Investment) Support Project,' which helps startup companies smoothly secure private investment funds and receive market validation support, until March 5.

Crowdfunding is a method of raising funds from an unspecified large number of people.

When a startup company registers its product on an online funding platform, it receives market evaluation through the choices and feedback of small public investors, and then expands its equity capital through investment attraction.

It is used by early-stage startups or venture companies based on innovative ideas for effective market entry and capital procurement.

The recruitment target is technology-based startup companies within 7 years of establishment in the province.

Ten companies will be selected for reward-type (providing products or services as funding rewards) and securities-type (providing equity) crowdfunding, and up to 7 million KRW per company will be supported.

Selected companies will receive professional crowdfunding education, one-on-one consultations per company, legal consultations, support for funding setup and video production, brokerage fees for platform registration, and assistance with fund investment attraction, government research and development (R&D) projects, and commercialization support project applications.

The province has been conducting the crowdfunding support project since 2018, and last year, nine companies succeeded in funding, raising a total of about 67 million KRW.

Seong Heungtaek, head of the Small and Medium Venture Business Division of the province, said, "The crowdfunding market using online platforms is rapidly growing due to COVID-19," adding, "It is expected to help reduce the burden of early market research and sales for startups and contribute to business growth."