□ Among 200 companies that participated in the project from 2020 to 2022, 26 companies reached more than KRW 100 billion in market value, and the market value of 116 companies that attracted follow-up investment grew by 3.5 times on average.
□ 50 more companies recruited after greatly increasing incentives to enter the global market in early March. |
The Ministry of SMEs and Startups (Minister LEE Young) announced that after analysing the outcomes of companies that took part in the Baby Unicorn 200 Fostering Project, it was found that 26 companies were able to reach KRW 100 billion in market value after attracting follow-up investment.
“Baby Unicorn 200 Fostering Project” is a project that discovers promising startups with innovative business models and verified growth potential to become potential unicorn companies (market value of at least KRW 100 billion) with global competitiveness.
* (Baby unicorn) Market value of less than KRW 100 billion →(Potential unicorn) KRW 100 billion to less than KRW 1 trillion→(Unicorn) KRW 1 trillion or more
Baby unicorn companies were selected through an evaluation process with citizen evaluation groups. To help these companies grow to become global unicorns, going beyond the domestic market, the Ministry of SMEs and Startups focused on fostering these companies in 12 different ways including providing funds to enter new markets.
| Entering New Markets |
Financial‧R&D‧Management Support |
| Funds to enter new markets (Max. KRW 300 million) |
Special guarantee (KIBO, maximum KRW 5 billion) |
Local-specialised R&D support |
| Support meetings with VCs and investors |
Policy funds (KOSMES, max. KRW 10 billion) |
R&D planning support program |
| Foreign market entering program from KISED |
Priority support with financial institutions |
Connection to the Youth Job Seeking Grant |
| Regulatory sandbox support |
Technology innovation development R&D
(TIPA, maximum KRW 2 billion) |
Support to broadcast advertisements |
* Priority guarantee: Maximum KRW 5 billion, increase of guaranteed rate to 100%, exemption of guarantee fee, special benefit during evaluation and estimation, etc.
** Policy loan: Possible to receive policy funds of up to KRW 10 billion by receiving preference according to government policies.
In the second half of 2022, 334 companies signed up for 40 spots, a ratio of 8.4 companies to 1 spot. This demonstrates the high level of interest in the project among startups. A total of 200 startups have gone through the project so far, and these companies were recognised as K-startup role models.
The total amount of investment from 116 companies that have attracted follow-up investment after being selected is approximately KRW 1.9714 trillion (KRW 16.99 billion on average). As the market value of these companies when signing up for the project was KRW 563.4 billion (KRW 4.85 billion on average), the companies grew by 3.5 times on average (250%).
* (Major examples) ① Terapin (Previously Copin Communications)(December 2021, KRW 81.9 billion) ② FASSTO(April 2022, KRW 70 billion) ③ Jeongyookgak(September 2021, KRW 57 billion) ④ VIRNECT(December 2021, KRW 30 billion) ⑤ 3i (September 2021, KRW 29.6 billion)
** Total amount of follow-up investment from 116 companies is approximately KRW 1.408 trillion.
Best practices of companies that have surpassed market value of KRW 100 billion and grew by more than tenfold after being selected are as follows:
Case ① Monolabs: A company that solves the social issue of senior citizens dying alone with IT
Monolabs provides AI-recommended customised health-functional food subscription services.
By cooperating with the local government, the company has been serving elderly persons living alone, who are also in a blind spot of social care. The company monitors their nutritional intake in real time to prevent them from dying alone.
After being selected for the project in April 2022, the market value of the company increased by 10 times in eight months.
Case ② Terapin: Next-generational leader of Hallyu with the globalisation of K-content
Terapin produces and sells webtoons based on novels using AI technology.
To enter the American market, the company flipped to an American corporation. The company is targeting the global market by showcasing K-content in the form of webtoons.
After being selected for the project, the market value of the company increased by 14 times in approximately two years and seven months.
Case ③ 3i: Video platform using Metaverse technology
3i provides a video platform based on Metaverse technology to ensure anyone can make their own media content easily without high-priced equipment.
After being selected for the project, the market value of the company increased by 14 times.
Case ④ TravelWallet: Fintech company specialising in foreign exchanges
TravelWallet provides mobile currency exchanges and overseas payment services. The company allows users to obtain foreign currency exchanged via smartphone anywhere in the world.
Sales in 2022 increased by seven times compared to the previous year, and the market value increased by 13 times compared to when the company was selected for the project.
Minister LEE Young stated, “Baby unicorn companies should not stay complacent in the small Korean market. They need to compete with leading global companies.”
She added, “We will make an improved program to assist companies as they enter the global market, and to ensure that promising startups that are showing rapid growth with technologies verified in the domestic market can also grow in the global market.”
After greatly increasing the incentives to enter the global market, the Ministry of SMEs and Startups will recruit an additional 50 companies for the Baby Unicorn 200 project in early March 2023.
The number of Korean unicorn companies grew to 22 at the end of 2022, which is the largest number in history. The numbers of new unicorns (7) and unicorn graduates (3) were also record high.
This achievement is meaningful as the numbers of new global unicorns (-52.1%) and unicorn graduates (-73.2%) have greatly reduced* due to the complex economic crises.
* New unicorns worldwide (CB Insights, January 2023) : (2021) 539 -> (2022) 258, -52.1%
Unicorn graduates worldwide (Crunchbase, January 2023) : (2021) 142 -> (2022) 38, -73.2%