PitPet, Twiny and Others Grow as 'Pre-Unicorns' in Baby Unicorns, Receive Special Guarantee Support

'K-Unicorn Project' Participating Companies Receive 1.1872 Trillion KRW Follow-up Investment, 50% Sales Increase, 3,386 Jobs Created
'Zigbang' Becomes Unicorn, Hanatech and Jeju Beer Enter KOSDAQ

On the 22nd of last month, Kwon Chil-seung, Minister of SMEs and Startups, held a meeting with seven young startup representatives who were recipients of the CES 2021 Innovation Award and selected as Forbes Asia 30 Under 30 Leaders in the S1 building of Tipstown, Gangnam-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Jong-hwa] Companies selected as Baby Unicorns last year, such as PitPet and Twiny, have grown into 'Pre-Unicorns' this year and have been selected as participants in the special guarantee program.

Also, 'Riiid,' which was selected for the Baby Unicorn or Pre-Unicorn special guarantee in 2019 and last year, attracted 20 billion KRW from SoftBank Vision Fund, and 'Zigbang' was recognized with a corporate value of about 1.1 trillion KRW, rising to become a unicorn company, achieving notable results.

The Ministry of SMEs and Startups selected 20 companies including PitPet and Twiny on the 1st as '2021 Pre-Unicorn Special Guarantee Participating Companies' and announced the achievements of companies that have participated in the 'K-Unicorn' project so far.

K-Unicorn Phase 2 Project Selected Companies, Up to 10 Billion KRW Guarantee Support

The Pre-Unicorn special guarantee is the second phase of the 'K-Unicorn' project for a venture powerhouse, and the final selected companies can receive a special guarantee from the Korea Technology Finance Corporation up to 10 billion KRW.

The 'K-Unicorn' project is a program that focuses support on unlisted companies that have attracted venture investment with a corporate value evaluated at 1 billion USD (about 1 trillion KRW) or more, called 'Unicorn companies.' Companies with a corporate value under 100 billion KRW are selected as 'Baby Unicorns,' and those with a value between 100 billion KRW and 1 trillion KRW are selected as 'Pre-Unicorns.'

This year, 50 companies applied for the special guarantee, undergoing eligibility review, document evaluation, technical evaluation, and guarantee screening, and finally, 20 companies were selected through a face-to-face evaluation involving a national jury and experts.

The average business age of the final selected Pre-Unicorn special guarantee companies this year was 5.6 years, with an average sales of 14 billion KRW in 2020 and employment of 70 people. Many excellent companies were present, with 70% (14 companies) receiving an A grade or higher in the Korea Technology Finance Corporation's technology and business evaluation. The average investment attraction amount was 22.2 billion KRW, and the average corporate value was estimated at 107.5 billion KRW.

Pre-Unicorns: Average Business Age 5.6 Years, Average Sales 14 Billion KRW, Employment 70 People

Companies that participated in the Baby Unicorn 200 last year drew attention by being selected for the Pre-Unicorn special guarantee this year. 'PitPet,' which provides pet lifecycle services such as health checkup tools for companion animals, and 'Twiny,' which manufactures industrial logistics robots, achieved remarkable success by being recognized for job creation, investment attraction, and future growth potential within one year, earning selection for the Pre-Unicorn special guarantee.

The achievements of companies that have participated in the 'K-Unicorn' project so far were also remarkable. An analysis of 97 companies (40 Baby Unicorns, 57 Pre-Unicorns) that participated in the Baby Unicorn 200 and Pre-Unicorn special guarantee from 2019 to 2020 by the Ministry of SMEs and Startups showed that more than half of the 97 participating companies, 50 companies, attracted a total of 1.1872 trillion KRW in follow-up investments, increased sales by more than 50%, and created 3,386 jobs.

Especially in the first half of this year, the first unicorn company (Zigbang) was born among the participating companies, and the 'K-Unicorn' project was evaluated as an effective stepping stone for unicorn company growth.

'Riiid' attracted 20 billion KRW from the 'SoftBank Vision Fund' in May, and 'Zigbang' was recognized as a unicorn company last month by being valued at about 1.1 trillion KRW through secondary stock transactions among venture investment institutions.

Zigbang Grows into a Unicorn... Active IPO and M&A

Some companies have succeeded in 'exit' through initial public offerings (IPO) and mergers and acquisitions (M&A). 'Hanatech' was listed on KOSDAQ in November last year, 'Ngenbio' in December, and this year, 'PNH Tech' in February and 'Jeju Beer' in May also entered KOSDAQ. 'Croquis.com' was acquired by the large corporation 'Kakao' in April.

The sales and employment of participating companies have also increased significantly. The average sales of Baby Unicorn 200 participating companies rose by about 150% compared to last year, and the sales of Pre-Unicorn special guarantee participating companies expanded by about 50%, showing a remarkable sales growth trend.

Jobs also increased, with Baby Unicorn 200 participating companies creating 830 new jobs compared to the application time, and Pre-Unicorn special guarantee participating companies creating 2,556 new jobs.

Additionally, the competitiveness of 'K-Unicorn' project participating companies is internationally recognized, such as winning the 2020 Consumer Electronics Show (CES) Innovation Award (DS Global) and winning five awards at an overseas startup competition (Sensstone).

Baek Gi-sik, head of the national jury and CEO of Ridi Co., selected as a Pre-Unicorn in 2019, said, "During the final screening of this Pre-Unicorn, I was impressed by the high level of domestic startup companies' capabilities," adding, "I hope that Pre-Unicorns, which have both business competitiveness and growth potential, will take a step further through this special guarantee."

Lee Ok-hyung, director of the Venture Innovation Policy Division at the Ministry of SMEs and Startups, said, "It has been proven that the K-Unicorn project helps startups rapidly scale up to unicorn companies," and added, "The Ministry of SMEs and Startups will continue to do its best to support Baby Unicorns to grow into Pre-Unicorns, and Pre-Unicorns to grow into unicorn companies."