[Tried It! Angel Investment] The Way to Make Money Even at 100 Years Old Is Exactly ‘This’

Observing the '37th Professional Angel Training Course'
2 Nights 3 Days of Lectures, Simulated Investment, and Exams
"Regional Business Growth" Efforts by Prospective Angels

Editor's NoteChristopher Columbus, who discovered the New World, had Queen Isabel behind him, and the genius artist Leonardo da Vinci was supported by the Medici family. Spain's greatest architect Gaudi was able to freely create his works thanks to Guell, who supported him throughout his life. These individuals were patrons who quietly supported what could have seemed like reckless challenges from behind the scenes?what we would now call 'angel investors.' This article contains a vivid account of a reporter meeting angel investors who invest in early startups and participating in mock investments.

"When angels demonstrate collective intelligence, tremendous power emerges." (Ko Young-ha, Chairman of the Korea Angel Investment Association)

About 70 citizens aspiring to become future angel investors gathered in one place. They came from all over the country and included a diverse range of professionals?from CEOs and executives of various companies to patent attorneys, lawyers, tax accountants, and dentists. From the 23rd of last month, they underwent a 3-day, 2-night training program to become professional individual investors (professional angels). The training was hosted by the Ministry of SMEs and Startups and organized by the Korea Angel Investment Association. The enthusiasm of the trainees filled the lecture room at the Chungbuk Center for Creative Economy and Innovation.

The first class was led by Ko Young-ha, Chairman of the Korea Angel Investment Association. Chairman Ko is a first-generation angel who has mentored and invested in early startup founders for over 20 years. Even now, through the GoVenture Forum he operates, he holds monthly corporate IR events to conduct investment screenings. Chairman Ko said, "Investment is a battle of information. The more information you have, the better angel investments you can make," adding, "It's not easy to outperform securities firms, venture capitalists (VCs), and professional evaluators, but using collective intelligence creates tremendous power." This means that when angels with diverse industries and experiences unite, they can discover good companies and lead to successful investments.

The Korea Angel Investment Association conducted the "37th Professional Individual Investor Training Course" from the 23rd to the 25th of last month at the Chungbuk Creative Economy Innovation Center in Osong-eup, Cheongju. Chairman Ko Young-ha is giving a special lecture to the trainees on the topic of "Startups in the Era of the 4th Industrial Revolution."

Chairman Ko mentioned Warren Buffett and Charlie Munger, citing 'investment' as a way to make money even at nearly 100 years old. He also emphasized the need to closely monitor the development direction of ChatGPT and invest accordingly. Angels investing in early startups differ from VCs who invest based on a company's sales, growth rate, and financial status. He recommended evaluating the founder's character and entrepreneurial spirit and listening to the startup team's formation history. He also advised investors to maintain composure and have a long-term perspective.

Kang Soo-hyun, CEO of Cosine Investment and Korea's first professional angel, also served as an instructor. CEO Kang has invested in over 70 companies and has led personal investment partnership funds multiple times. A general partner (GP) like CEO Kang plays the role of the fund's leader. The GP is the captain of the fund ship. To ensure responsible management, the GP's equity stake must be at least 3% of the total investment amount. CEO Kang shared her angel investment experience and know-how with the trainees and explained the 'Spray & Pray' technique, which means investing in many companies and hoping for returns. She said that if you invest in 10 companies, 1 or 2 will yield profits. She recommended the 'milestone investment method,' which sets the purpose and timing of fund usage so that founders can pursue their business with clear goals.

Goseongyong, CEO of Hangang Brewery, is giving an IR presentation introducing his company on the 24th of last month during a professional individual investor training session.

The highlight of the professional angel training was the opportunity to listen to startup founders' IR presentations and conduct mock investments. Three founders?'Hangang Joojo,' which makes Makgeolli targeting the MZ generation; 'Hunik,' a chicken meat alternative company; and 'Cloud9,' which develops antibiotic resistance diagnostic kits?each pitched for 5 minutes and answered questions for 10 minutes. Sharp questions were asked, such as "Do you have plans to export Makgeolli?" "What differentiates you from competing alternative meat manufacturers?" and "Are there any issues with domestic approval of the diagnostic kit?" Each group analyzed the companies and decided how much to invest, then publicly presented their decisions. On the last day of training, the 25th, a test was held. Trainees had to answer 30 questions within an hour on angel investment-related laws and systems, formation and operation of personal investment partnerships, and post-investment management. The 70 trainees, who had maintained a friendly atmosphere throughout, took the test with a serious attitude.

A 20-something startup founder, Mr. A, said, "I entered the tiger's den to understand the investor's mindset," and added, "It was good to see the startup ecosystem from a new perspective." Mr. B, who recently opened a law office in Daejeon, said, "With the increase in legal disputes involving startups, I naturally became interested in angel investment," citing tax deduction benefits as an attraction of angel investing. Lee Jong-taek, head of the Chungbuk Center for Creative Economy and Innovation, is also a graduate of the 37th class. He attended the training with center staff, aiming to nurture 200 angel investors in Chungbuk. Since many companies and VCs are concentrated in Seoul and the metropolitan area, angel investment is closely linked to the growth of regional startups and job creation. Officials from the Korea Rural Development Administration and Chungbuk Provincial Government also participated in this training. The investment networking that started from the bond of being 37th class professional angel trainees remains active. Amid widespread concerns about regional extinction, grassroots angels continue their efforts to ignite the spark of regional company growth.