[Interview] Start2Group, Producer of 12 German Unicorns: "Korean Startups Should Target Global Markets from the Start"

Interview with Claus Karthe, Asia Representative of Start2Group
"Products that succeed in Korea quickly spread across Asia"
Focusing on Three Strategic Areas: AI, Climate Tech, and Life Sciences

"A clear global strategy must be established from the early stages of business."

Global accelerator Start2Group has identified Korea as a key hub in Asia's innovation ecosystem and emphasized the importance of overseas expansion strategies for startups. Claus Karthe, Asia Representative of Start2Group, recently stated in an interview with The Asia Business Daily, "From the initial startup stage, companies should design their target markets, regulatory environments, and partnership strategies with global market entry in mind."

Founded in 2008, Start2Group has supported over 6,000 startups over the past 17 years, with approximately 800 startups growing annually through its support programs. Through this process, 12 German unicorns (unlisted companies valued at over 1 trillion won) have emerged. The company currently operates 15 global branches in 21 countries across Europe, the Americas, Asia, the Middle East, and Africa, employing over 130 staff and maintaining a network of more than 1,300 expert mentors.

This year, alongside the establishment of its Korean subsidiary, Start2Group has signed memorandums of understanding (MOUs) with the Korea International Trade Association, Korea Venture Business Association, KAIST Global Commercialization Center, and domestic venture capital firms, signaling a full-scale entry into the Korean market.

FlixBus and Celonis Success Stories... Representative Karthe: "I am also a founder myself"

Start2Group is the operating organization for the "German Accelerator," a flagship global startup development program of the German Federal Ministry for Economic Affairs and Energy. Since its launch in 2012, the program has attracted participation from over 1,600 startups and has achieved results including more than $16.7 billion (approximately 24 trillion won) in total investment raised.

In particular, Representative Karthe has served as Asia Representative of Start2Group since 2019, designing and operating programs for German startups to enter Asian markets. He said, "After working for Nokia in Finland for about 12 years and completing an MBA at IMD Business School in Switzerland, I founded my first startup in the Philippines." He added, "Based in Singapore, I have also co-founded and supported seven startups." He is currently a partner at VC 1MX and a co-founder of the Manila Angel Investors Network.

Klaus Karte, Asia Representative of Start2Group, recently stated in an interview with The Asia Business Daily, "Products that succeed in Korea quickly spread throughout Asia," adding, "Global market entry should be considered from the product planning stage." Start2Group

He stated, "Start2Group provides customized support at every stage, from initial market entry to prototype validation and investment attraction." He continued, "In this process, we collaborate with large corporations to expand open innovation opportunities, and for governments, we provide policy consulting and ecosystem development support." He further explained, "Capital flows into areas where problems need to be solved. Based on our internal startup database of over 20 million cases, we can identify which areas are currently the focus of research and development and where venture capital funding is being directed."

German companies FlixBus and Celonis are representative success stories of Start2Group's support programs. FlixBus is a transportation network company that connects city bus operators with long-distance travelers. By pioneering overseas markets from the early stages, the company has, in just 13 years since its founding, grown into a global mobility enterprise connecting more than 5,600 cities worldwide. In 2023 alone, the number of passengers using its services reached 81 million.

Celonis, a data processing company, has become Germany's first decacorn (an unlisted company valued at over 10 trillion won). Through its "process mining technology," which optimizes business workflows, it is targeting the global B2B market, and its current annual revenue is approximately 500 billion won.

Representative Karthe stated, "We are currently focusing on emerging industries such as AI, climate tech, and life sciences," adding, "AI is a core technology that determines competitiveness across all industries. It is accelerating innovation in diverse fields, including manufacturing and logistics optimization, healthcare, and generative AI."

"Overseas Expansion Should Be Targeted from the Product Development Stage"

Regarding Korea, Representative Karthe said, "It is the most dynamic and innovative market in Asia," adding, "Korea has a solid manufacturing base and world-class technological competitiveness, and major industries such as semiconductors, displays, and bio-health are already leading the global market." He also pointed out, "The world's highest level of digital infrastructure and a smartphone penetration rate of 99% make Korea an ideal market for testing and validating new products and services. Products that succeed in Korea tend to quickly spread throughout Asia."

Since 2020, Start2Group has been operating the "German Accelerator Korea" program domestically, supporting German startups' entry into the Korean market as well as helping Korean startups expand globally.

A representative case is the domestic smart farm startup Urban Farmer, which successfully exported its "Cube Farm" system to the Polish Food Bank. The biotech company NParticle is currently discussing a merger and acquisition (M&A) with DKSH Group, a global distribution company in Switzerland. Able Labs, which won an award at the 2023 RESI Conference, also grew through Start2Group's support program.

Representative Karthe advised, "Rather than considering overseas expansion only after product development is complete, it is necessary to keep global market entry in mind from the planning stage," adding, "Novelty of ideas or technological innovation alone is not enough. A customized strategy based on local market regulations, culture, and consumer behavior is essential."

He also emphasized the speed of global expansion. He said, "Because the market changes rapidly, 'timing' is more important than anything else. The faster a startup enters, the more likely it is to gain a competitive edge in branding and market share." He added, "In some cases, overseas demand can surpass domestic demand. To strengthen global capabilities, it is also necessary to prepare product and marketing materials, user environments, and investor and sales-related documents in English."