Jeong Ju-Young Startup Competition Records 73 to 1
Jung Jin Gong Youth Startup Academy Also Attracts 4,181 Applicants
Interest and enthusiasm for startup entrepreneurship are growing stronger despite the pandemic (global outbreak). This is because startup business models based on innovative technologies have emerged as new growth engines in the era of digital transformation following COVID-19. With venture investments reaching record highs, the growth rate of promising startups is accelerating, and there are increasing cases of successful exits or companies rising to unicorn status. As talent floods in, competition rates for various startup support programs and contests are soaring.
According to the Asan Nanum Foundation on the 21st, a total of 873 teams applied for this year’s ‘Chung Ju-yung Startup Competition’ aimed at discovering promising startups nationwide. Considering that the competition plans to select 12 teams to advance to the business execution stage, the competition rate reaches 73 to 1. Last year, the competition rate was 90 to 1. The Asan Nanum Foundation explained that the enthusiasm for startups remains strong, given that from this year, the competition was divided into a ‘Preliminary Track’ for prospective startup teams and a ‘Corporate Track’ for startups within two years of incorporation, with the corporate track limiting cumulative investment to within 500 million KRW to reduce dummy entries.
Started in 2012 and now in its 11th edition, this competition runs over approximately eight months, intensively supporting the growth of early-stage startups during this period and establishing itself as a cradle for promising startups. Especially, teams advancing to the business execution stage receive designated office space at ‘Maru,’ an entrepreneurship platform operated by the Asan Nanum Foundation, allowing them to conduct actual business, which has attracted significant interest from founders.
This year, early-stage startups also flocked to the Youth Startup Academy of the Small and Medium Business Corporation. Including the Daejeon Youth Startup Academy operated by the private accelerator Bluepoint Partners, a total of 4,181 applicants applied for the 12th Youth Startup Academy enrollment this year. The number of enrollees was 915, resulting in a final competition rate of 4.57 to 1. The Small and Medium Business Corporation explained that the enthusiasm for startups continues this year following last year’s record-high competition rate of 5.15 to 1 since the academy’s opening. The Youth Startup Academy is Korea’s representative startup support program that discovers excellent entrepreneurs with promising ideas and innovative technologies, providing up to 100 million KRW in commercialization funds along with education, coaching, office space, and prototype production support. Interest in early-stage startups has increased further as companies like Viva Republica, which launched ‘Toss’ in 2018, and Zigbang, which became a unicorn last year, graduated from the academy.
The intensified enthusiasm for startups is also analyzed to be related to the abundant capital in the market following last year’s record-high venture investment amount. Last year, venture investments recorded 7.6802 trillion KRW, a 78.4% increase from the previous year. The number of invested companies also nearly doubled compared to 2017, reaching 2,438. A venture and startup industry insider said, "With increased investments and higher valuations of invested companies, the market is vibrant," adding, "As startups that have proven their capabilities to lead the digital economy model emerge one after another following COVID-19, interest in entrepreneurship is growing."
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