Bluepoint Partners "Connecting Startups and Local Governments... Overcoming Regional Decline through Investment"

To overcome regional extinction and revitalize local economies, it is necessary to move away from the traditional administrative budget-centric mindset and create a 'regional specialized industrial ecosystem' that attracts related startups and talent on a nationwide scale, according to an investment industry diagnosis.

On the 22nd, Bluepoint Partners, a major domestic accelerator (AC), held a 'Deep Blue Chat' meeting at Maru180 in Gangnam-gu, Seoul, under the theme 'How to Overcome Regional Extinction through Startup Investment,' sharing cases of collaboration between startups and local governments as well as plans to revitalize regional economies. Deep Blue Chat was organized to introduce Bluepoint's investment strategies and portfolio companies, marking the first time Bluepoint has held an investment-related meeting.

Moon Seung-gyu, CEO of Blank, is explaining the business overview through Bluepoint Partners' 'Deep Blue Chat' held at Maru180 in Gangnam-gu, Seoul on the 22nd. / Photo by Kim Dae-hyun. kdh@asiae.co.kr

At the meeting, Lee Mi-young, head of the Company Building Group at Bluepoint Partners, emphasized the importance of 'open investment' in regions and industries. Lee stated, "Budget-centered investments so far have resulted in 'cookie-cutter planning' that produces similar festivals, and 'inefficient projects' that spend large budgets but attract few visitors," adding, "Local governments often spend more on erecting regional symbols rather than building industrial clusters to create synergy."

She continued, "Bluepoint Partners sought not a simple policy or commercial approach, but a way for startups to create markets in the region and generate growth momentum through those markets," explaining, "As a result, instead of a 'closed approach' that tries to solve problems using only local resources, we determined that an 'open approach' utilizing nationwide resources to find optimal solutions is necessary." Local governments' self-reliant business plans alone cannot attract external companies or easily connect to new business opportunities.

The case of Cicada Innovations in Australia was also introduced. Lee said, "Although the industrial complex was declining and the city itself was aging, existing factories were repurposed as startup incubation spaces in deep tech fields such as climate and energy, health foods and agriculture, space, and advanced industries, transforming the area into a startup nurturing space," adding, "Over the past 25 years, more than 350 deep tech ventures have been born, achieving results such as over 1,000 patents, securing capital exceeding 1.8 trillion KRW, and creating thousands of jobs."

She emphasized, "Startups can fill gaps by providing services that solve problems based on the needs of the region and its residents," and "When convenience services, leisure services, and jobs are fulfilled, the young population can be maintained, and furthermore, a virtuous cycle structure that attracts external populations can be established."

She also shared the achievements of the 'BETTER里' (Better-ri) project, conducted in collaboration between Bluepoint Partners and the Korea Tourism Organization. Better-ri is a project by the Tourism Organization aimed at revitalizing regions by increasing the living population in areas experiencing population decline and stimulating the economy.

Lee Dong-woo, CEO of 'Proudly,' a Hanok stay specialized brand participating in the Better-ri project, stated at the meeting, "We thought of Hanok stays as a way to revive and preserve abandoned Hanok houses," adding, "We are attempting to delay population extinction and revitalize the local economy in harmony with the region." Moon Seung-gyu, CEO of 'Blank,' which operates the idle house remodeling and rental management platform, explained, "According to 2022 Statistics Korea data, there are an estimated 2.09 million old detached houses nationwide," and "The biggest difficulty for vacant house owners is managing tasks such as selecting construction companies, listing properties, contracts, and rent negotiations, and Yuhu supports this process and connects vacant house owners with tenants through its business model."

Bluepoint Partners plans to continue discovering startups that will newly create regional industrial ecosystems beyond the lodging and tourism sectors. Lee Mi-young said, "A recently focused area is 'Next Farm,' where various technology startups related to rural industries in local areas can gather to form a single theme," adding, "We are also discussing with local governments to identify demand and explore whether synergies can be created by connecting services for foreign workers in Korea and services for domestic residents working with them."