[Report] Visiting Cheongnyeon Startup Academy Passed by Unicorn Founders Like Toss and Zigbang

Cumulative Sales of Graduates Reach 5 Trillion Won
Creation of Over 17,800 Jobs
Funding Support Based on Business Progress and Performance
72% Survival Rate of Companies in Their 5th Year
Overcoming Limitations of Non-Face-to-Face Education Remains a Challenge

'Toss, Zigbang, Gangnam Unnie, Banksalad….'

There is a place where startup founders, known just by their names, have passed through over the course of a year. It is the "Youth Startup Academy (Cheongchangsah)" operated by the Small and Medium Business Corporation. Since the main campus opened in March 2011 in Ansan, Gyeonggi Province, a total of 18 locations are currently operating nationwide. As of last year, a total of 5,842 young CEOs have graduated from Cheongchangsah. They have achieved cumulative sales of 5 trillion won and created about 17,800 jobs. Young CEOs have received various startup education at Cheongchangsah and have been supported with facilities and investment funds for business preparation, achieving remarkable growth.

◆Following the senior companies that became unicorns… about 5,000 applicants every year= On the 17th, upon entering the main campus of Cheongchangsah, a large white unicorn sculpture greeted the reporter. This sculpture was erected with the hope that Cheongchangsah would become a cradle for unicorn companies (unlisted startups valued at over 1 trillion won). Lee Seung-geon, CEO of Viva Republica (operator of Toss), which became a unicorn company in 2018, is a graduate of the 2nd class of Cheongchangsah. Last year, Ahn Sung-woo, CEO of the real estate transaction platform Zigbang, which was named a unicorn company, is also a graduate of the 1st class of Cheongchangsah.

As senior entrepreneurs have achieved good results and a youth startup boom has spread socially, the number of applicants to Cheongchangsah has been increasing every year. About 1,000 new students are selected nationwide, with 4,919 applicants in 2019, 4,929 in 2020, and 5,484 last year, showing an increasing trend annually. This year, at the Ansan main campus, 399 applicants applied for 130 spots, recording a competition ratio of 3:1. Applicants must pass document screening, presentation (PT) evaluation, and in-depth interviews to be admitted. Additionally, applicants must be under 39 years old and have started their business within the last 3 years.

There are three main reasons why people knock on the door of Cheongchangsah. First is business funding. Enrolled students can receive business funding of up to 100 million won, covering up to 70% of the total project cost. However, the funds are not given carelessly. Mid-term and graduation evaluations are conducted once each, and business funding is provided differentially based on the results. Principal Kim Seong-hee said, "Young CEOs have opportunities to present their business performance in front of instructors," adding, "Business funding is provided differentially depending on the progress and results of the business." Graduated companies receive follow-up support for five years to help overcome the "valley of death." The 5-year survival rate of startups that graduated from Cheongchangsah reaches 72.3%. The second advantage is access to office space and various facilities. There is space for 452 teams to reside, and a "Design Factory" is established where product design, engineering, prototype production, and filming can be done.

Various startup-related education and one-on-one coaching with experts are also indispensable. Experienced professional instructors help young CEOs enhance their business capabilities. On the day the reporter visited the main campus, Professor Kim Kyung-mook of Hanyang University, who worked as a designer at Samsung Electronics for 20 years, gave an online lecture on "Design Thinking" to internal staff of Cheongchangsah. This is a gateway to becoming a Cheongchangsah instructor. Professor Kim explained, "We also recruit new instructors according to trends," adding, "Students evaluate the instructors' classes, and if satisfaction is low, the instructor can no longer teach." He also said, "This year, through entrepreneurship education, we aim to emphasize the values of integrity and sharing," adding, "The focus is not just on growing as entrepreneurs who make a lot of money, but on cultivating the right spirit as entrepreneurs needed by society."

◆Overcoming the limitations of non-face-to-face and building senior-junior networks= Lee Chi-won, CEO of Medintech (11th class), discovered that the domestic medical endoscope market is 100% dependent on foreign products and began research on core technologies of endoscopes. He entered Cheongchangsah last year, received 100 million won in startup support funds, and is developing a smart endoscope with improved resolution and ease of operation. He has achieved the success of winning a 9.5 billion won multi-ministerial full-cycle medical device R&D project over five years, and the number of employees increased from 4 in 2020 to 10 last year. Recently, he attracted 8 billion won in Series A investment from private venture capital (VC).

Due to the impact of COVID-19, it is unfortunate that enrolled students have not been able to participate in various training and international exhibitions, and startup education is being conducted non-face-to-face. Principal Kim said, "We are exploring ways for young CEOs to interact with instructors and peers and actively participate," adding, "Since the younger generation is familiar with online environments, we might also utilize the metaverse." They plan to activate networking where graduates share their experiences and know-how with junior companies and increase mentoring opportunities.

The Ministry of SMEs and Startups is promoting "Youth Startup Academy 2.0," a revamped operation method of Cheongchangsah starting this year. The Daejeon Cheongchangsah will be operated as a private-led model, with Bluepoint Partners selected as the operator. A Bluepoint Partners official said, "The biggest difference from other regional Cheongchangsah is that the operator directly selects young CEOs and reviews investments during the program." Additionally, Ansan specializes in materials, parts, equipment, and manufacturing; Seoul focuses on ICT and global expansion; and Northern Gyeonggi supports entrepreneurship for military personnel, operating with regional specialization.