[Company Exploration] Bluepoint's First IPO Challenge Accelerated

Total Valuation of Invested Startups Exceeds 4 Trillion Won
Follow-up Investment Creates Virtuous Cycle for Fundraising Upon IPO
Concerns Over Timing of Securities Registration Submission Amid IPO Market Contraction

[Asia Economy Reporter Hyungsoo Park] Amid the plunge in venture capital (VC) stocks listed on the domestic stock market, Bluepoint Partners has become the first accelerator (AC) that invests in and supports early-stage startups to pursue a listing on the KOSDAQ market. Going public will not only secure investment funds but also enhance recognition as the first listed accelerator. It is expected that increasing support for startups and a proven nurturing system will enable a virtuous cycle of rapid growth and expansion of follow-up round investments.

An accelerator is a specialized startup planner that selects and invests in startups (new ventures) and early entrepreneurs within three years, nurturing them. They mainly provide initial investments in the tens of millions of won range and support space, personnel, and management to reduce startup failure rates and lead follow-up investments. Early-stage startups are relatively unaffected by market volatility. Since they have significant growth potential, high profitability can be expected. As early-stage investments gain attention, Bluepoint is drawing focus as the first accelerator to pursue an IPO.

Founded in 2014, Bluepoint had invested in 255 startups as of the first half of this year. The sectors of invested startups include digital (24%), industrial technology (20%), data and artificial intelligence (18%), healthcare (16%), bio and medical (10%), and cleantech (8%). Representative investment portfolios include Plasmap, a manufacturer of medical sterilizers; Tomocube, a developer of 3D microscopes; and Starstech, an eco-friendly deicing agent manufacturer using starfish. Among the 10 startups Bluepoint invested in over the past three years, nine continue their business activities. The total value of invested companies has exceeded approximately 4 trillion won. Plasmap recently entered the KOSDAQ market, and Inventage Lab and Tomocube are also pursuing IPOs.

Bluepoint’s screening officers are highly regarded for their ability to discern non-quantitative indicators related to team capabilities and growth potential rather than financials. NH Investment & Securities estimated that Bluepoint reviewed investments in over 1,500 startups last year and is expected to complete reviews of about 3,000 companies this year. Their goal is to invest in 70 companies annually. The number of companies in their investment portfolio is expected to exceed 300 by the end of this year.

Bluepoint raised 11 billion won through a pre-IPO in February 2020, with IBK Industrial Bank and DB Financial Investment participating as investors. They attempted to go public in December of the same year but voluntarily withdrew. With improved performance and increased market understanding of accelerators since then, they appear to be pursuing listing again. Sales are growing rapidly. Bluepoint recorded sales of 38.53 billion won and operating profit of 24.17 billion won last year, increasing by 106.5% and 234.3% year-on-year, respectively. In the first half of this year, they achieved sales of 20.53 billion won and operating profit of 11.27 billion won.

They pursue a partial recovery strategy where, after seed investment and acceleration processes, they recover part of the investment when the company reaches Series A or B round funding. The recovered funds are reinvested in new companies, creating a structure that generates stable returns.

While growth rates in sales and operating profit margins attract investor interest, the problem lies in the low expectations for the IPO market. The sluggish stock prices of recently listed KOSDAQ newcomers have dampened the demand forecast atmosphere compared to early this year. A considerable number of companies have set their IPO prices at the lower end of their desired range. Some companies are postponing their listings. Bluepoint is reportedly coordinating the timing of submitting its securities registration statement. If not submitted within six months from the date of notification of the preliminary review result, the approval will expire.

Bluepoint has raised its profile by focusing on technology-based startups that are relatively easy to enter overseas markets and allow risk diversification. They have established various programs to support early growth and strengthened internal organization. In addition to investment personnel with industry expertise, teams for portfolio growth, brand communication, pre-startup nurturing, and open innovation have been formed. In April, Bluepoint directly planned and invested in the establishment of 'Different Doors,' a children-only service. They have expanded their business area to the 'starting stage (zero stage),' working alongside prospective entrepreneurs from the very beginning, beyond just early-stage investment and support.

Lee Yong-kwan, CEO of Bluepoint, said, "By securing high credibility through listing, we will be able to provide more opportunities and possibilities to startups," adding, "Once listed, general investors can indirectly invest in numerous early promising startups verified by Bluepoint, reducing risk and revitalizing the startup market."