Seouls startup ecosystem is set to take on the tech world.
It will be South Koreas biggest initial public offering since mobile gaming company Netmarble raised 2.7tn in May 2017.
It’s free, every week, in your inbox.
Its just this sort of ambition thats set to put Seoul on the map as a global startup hotspot.
Ambitious and government-backed
Seouls Mayor Park Won Soon has high ambitions for the citys startup ecosystem.
Last year heannouncedhis goal to make Seoul one of the top 5 cities for startups in the world.
And this isnt just lip service.
Both the government and the city are putting their money where their mouth is.
According toForbes, South Korea has the highest government backing per capita of startups in the world.
Whats behind this massive investment?
Conglomerates are a little stagnant.
We need new innovative measures to break through and we think startups are that.
But the city isnt just throwing money into the abyss and crossing its fingers for a big return.
The mayor recently announced a massive investment to become top five in the worlda very ambitious goal.
It helps that the country has one of the fastest internet connections in the world.
Whether it was high-speed internet, cell phones, games, esports, or microtransactions.
This is all part of the governments plan to spur innovation by removing barriers.
Seoul itself is home to over 50 universities.
Apparently, these changes have been just what the country needed to open up the gates.
This is the biggest difference from Silicon Valley, which mainly has private accelerating programs.
Still, there are still a number of challenges international startups face.
We consider the language barrier and networking as the biggest challenge.
After the 3-month K-Startup Grand Challenge is over, about half of the participating startups incorporate.
This follow-up program will focus on investing alumni and cooperating with Korean conglomerates.
Programs such as KSGC manage to make this transition extremely smooth.
One thing to keep in mind:
Seoul and Korea offer a very unique experience for international startup founders.
If you learn how to navigate such a companys internal politics and ecosystem, the benefits are boundless.
Which types of startups will excel in Seouls ecosystem?
Speaking with the experts, its clear why the city has chosen to focus on these areas.
Korea has the greatest ICT infra in the world and this is a reason they apply to the program.
As a long time investor in Seouls startups, Chae has seen this trend coming.
Life Sciences
Just like with Seouls FinTech ambitions, building out its Life Sciences sector really just makes sense.
In fact, South KoreasR&D spendingto GDP ratio is the highest in the world.
Weve already seen proof of the strength and agility coming from the citys BioTech and MedTech startupsduring the pandemic.
Seoul has so much more to offer in these areas.
Now the city is experiencing a boom in startup funding but it still has a long way to go.
These conditions could create great opportunities for investors who want to get their foot in the door.
I believe that cracking the overseas market is the most essential element for startups sustainable growth.
In his view, building a powerful Angel community will be critical.
Founders are extremely talented and the best of the Korean founders can compete with anyone in the world.
