2. Lecturers
Name: Bang, Seungae (Ph.D)
Department
- Adjunct Professor, Dong-Ah Institute of Media and Arts
- Squat Company, CEO
E-mail: seungaebang@gmail.com
2
3. The table of contents
1. Start-up
2. The government agencies
3. Co-working space
4. Startup incubator
5. Startup accelerator
6. Venture capital
7. ICT startup case
3
5. 1. Start-up
- Types of Entrepreneurship
1. Technology start-up
2. Existing business
5
6. 1. Start-up
- Types of Entrepreneurship
1. Technology start-up
• Technology ICT start-up is based on innovative ideas.
• ICT technology entrepreneurship has future growth potential,
when it succeeds, there will be more jobs.
• When existing the general business combines IT, the business
is more innovative.
2. Existing business
• General manufacturing, general service, outsourcing service,
facility management…
• In Korea, large companies hold the initiative, small companies
do not develop their own technology or know-how.
6
7. 1. Start-up
- The meaning of Start-up
• Start-up is ICT / IT based new venture company.
• Start-up is the term originated in Silicon Valley, USA.
• Founding company with innovative IT technology and idea.
• Start-up differs from ventures, because start-up does not
raise more financial resource than ventures.
• ICT technology companies have high risk, high growth,
high profitability.
7
8. 1. Start-up
- The Growth Stage of Start-up
8
1.
Sharing the
information about
start-up
2.
Start-up
Acceleration /
education
3.
Investment
9. 1. Start-up
- The Ecosystem of Start-up
Co-working space
9
Start-up
Incubator
Start-up
accelerator
Start-up
Start-up Media
Venture Capital
Government
agency
11. 2. GovernmentAgency
- The Role of Government Agencies
• An unemployment rate of Korea is the one of biggest problems.
• In 2017, government support for start-up, the budget is very
high for start-up support in the meaning of job creation.
• In the meantime, Korea has focused on the major industries for
large companies, this brings to limit of growth.
• The government should diversify and improve the economic
growth base.
11
12. 2. GovernmentAgency
- The Role of Government Agencies
• The government should focus on revitalizing innovative
ICT entrepreneurship to create good jobs.
• ICT start-up based on new ideas should be increased.
• The government should ensure that young entrepreneurs
succeed through market research and customer validation
for the discovery of good business item.
12
13. 2. GovernmentAgency
- The Support of Government Agencies
• The business foundation support of government is less
than the investment funds of venture capital, but it helps
start a business.
• Start-ups should not rely on government supports for a
long time, because start-ups do not have the
independence of their own business.
• The important thing is that start-up only has to make
money from customers, not government support.
13
14. 2. GovernmentAgency
- The Support of Government Agencies
• The Start-up must receive government supports or
funding in the initial business phase.
• And then start-up needs the seed investment from the
accelerator. The next step is to receive from the
investment of venture capital.
14
1.
Government
supports
2.
The seed
investment
from the
accelerator
3.
The investment
from the
venture capital
< The step of start-up’s financing >
16. 3. Co-working Space
- The important elements of start-up
1. The space for office
2. The innovative, good item
3. Team members
4. Money for business
16
17. 3. Co-working Space
- The important elements of start-up
1. The space for office
- The space is the most important for start-up that lack money.
- The co-working space provides opportunities for human
networking, information sharing, team discovery, connecting with
investors.
2. The innovative, good item
3. Team members
4. Money for business
17
18. 3. Co-working Space
- The Definition of Co-working Space
• Co-working space is sharing the office space with people
from different disciplines.
• It is divided into the open space and fixed office space
managed by membership. (2 types)
• It can save money by sharing the office equipment and
meeting rooms with low rent.
• From there, start-up teams can naturally connect to other
idea and collaborate with other teams.
18
19. 3. Co-working Space
- The History of Co-working Space
• The co-working space is a model that started in the
United States.
• Since the mid 2000s, freelancers from U.S.A have
gathered to create the co-working space, and then it has
spread to Europe, Southeast Asia, China.
• After the advent of Web 2.0, various collaborative tools
based web became available for free. Because of this,
people do not have to work together in a fixed office every
day.
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20. 3. Co-working Space
- The History of Co-working Space
• Digital nomads collaborate on laptops through real-time
collaboration tools like Messenger, Dropbox, and Google
Drive.
• The office rent fee is very expensive in New York, San
Francisco, USA. Because of this problem, co-working
space has spread.
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21. 3. Co-working Space
- Co-working Space in Korea
• The co-working space introduced so far are operated by
private companies. (Fastfive, Hivearena, Rehoboth)
• The business center operated by government agencies
also include co-working space.
• The characteristics of private enterprise operation and
government agency operation are different.
21
22. 3. Co-working Space
- Co-working Space in Korea
• The operation of private companies are aimed at the
profitability, start-up investments, the professional
networking.
• The operation of government agencies are aimed at the
public, and open space for as many people as possible,
and operated for free.
22
23. 3. Co-working Space
- The Profitability of Co-working Space
• The profit model of existing business centers is the real
estate.
• But the profit model of co-working spaces for individuals is
membership fee.
• Co-working spaces are categorized as a sharing economy
and is classified as innovative business service such as
Uber or Airbnb.
23
24. 3. Co-working Space
- Recently, Combined with a Share House
• Share houses is a place where people can share their
residential space and live together.
• Recently, several companies operate in conjunction with
the share house and the co-working space.
• Various people, such as entrepreneurs, activists,
designers, IT developers, planners live and collaborate in
the share house.
• Digital nomad foreigners are living in share house and
doing project – based work at the share house.
24
26. 4. Start-up Incubator
- The Role of Incubator
• The incubator is an organization that supports the
launching of products/services and attracting investment.
• The start-up incubator has many offices for
entrepreneurship.
• The incubator has space for seminars, networking and
events as well as working offices.
• It helps connects start-up members and experts through
events and educational programs.
26
27. 4. Start-up Incubator
- The Role of Incubator
• The incubator helps start-up members to shape their
business item from a simple idea to business model
through the educational training.
• After the idea has been shaped, they proceed the
deepening verification such as the market research and
the customer development.
27
28. 4. Start-up Incubator 28
1.
Creating Idea
for business
item
< The Incubating process for early stage business >
2.
Business
modeling
3.
Verifying
Business
model
(Customer
development
/ Market
research
4.
Business
development
30. 4. Start-up Incubator
- Examples of Incubators in Korea : D.Camp
< D.Camp >
• Establishment Year : 2013
• Operator : Banks Foundation for Young Entrepreneurs
• Goal : Investment, Start-up training, infrastructure
construction
• Major business
Funding through venture capital and investment for start-ups
Operating co-working spaces and educational programs
30
31. 4. Start-up Incubator
- Examples of Incubators in Korea : D.Camp
• The history of business start-up in Korea is divided into
“before D.camp” and “after D.camp.”
• Twenty financial institutions have launched “Banks
Foundation for Young Entrepreneurs”, this foundation has
established D.Camp.
• D.Camp is also the business hub, Silicon Valley’s venture
capital moved into D.Camp.
31
32. 4. Start-up Incubator
- The Cooperation between major companies and
government
• Some Korean incubators are operated by the Korean
government.
• The Korean government and major companies jointly invest
money, they then establish a incubator and operate it
together.
• In this case, public servants, government agency employees,
and company employees work together in the incubator.
32
33. 4. Start-up Incubator
- The Cooperation between the major company and
government
33
Government
(Public official)
Major
company
(Company
employee)
Government
affiliated
organization
(Government
agency
employee)
A joint investment
34. 4. Start-up Incubator
- The Cooperation between the major company and
government
< Center for Creative Economy and Innovation >
34
35. 4. Start-up Incubator
- Center for Creative Economy and Innovation
• Establishment Year : 2014
• Operator : Ministry of Science and ICT
• Location : Total 18 (Seoul, Gyeonggi-do, Gangwon-do…)
• Goal : Business support for ICT start-up
• Major business
The competition contest for start-up, Business mentoring
program, Job creation for young people, etc
37. 5. Start-upAccelerator
- The meaning of accelerator
• The accelerator means supporters and support
organizations that promotes the growth of start-ups.
• Since Silicon Valley’s “Y Combinator” has established,
the history of accelerator has started.
• Before the appearance of “Y Combinator”, there was only
venture capital.
• Accelerators invest in start-ups with less budget than
venture capitals. Accelerators invest more in start-ups and
train start-ups.
37
38. 5. Start-upAccelerator
- Korean start-up accelerator
• May 2016, Korea has established a law for the start-up
accelerator, defining the role of the accelerator, and
granting legal status, deducting income tax / corporation
tax.
• Korean government has monitoring authority to registered
accelerators.
38
40. 7. Venture Capital
- The role of venture capital
• Many venture companies have technological prospects,
but they are difficult to obtain loans from general financial
institutions because their business management is weak.
• Venture capital invests in venture companies that need a
lot of initial budget.
• Venture capital acquires shares from a company, it aims
at the redemption of funds from the company.
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41. 7. Venture Capital
- The role of venture capital
• The accelerator invests less than the venture capital. It is
the initial investment like a seed.
• Venture capitalists are investing a lot more than the
accelerator. (Billions to ten billions)
• Unlike the accelerator, venture capital does not train and
provide the education program for start-ups.
41
42. - The Ecosystem of Start-up
Co-working space
42
Start-up
Incubator
Start-up
accelerator
Start-up
Start-up Media
Venture Capital
Government
agency
44. 8. The Example of ICT Start-up
- Bagle Labs
• Bagle Labs received the
support of office / fund from
government, and then they
had succeeded in attracting
investment from venture capital.
• Their item is a smart tape
measure, which makes it easy
to measure the length of things
through the big data.
44
45. 8. The Example of ICT Start-up
- BISECU
• Smart bike lock
• BISECU’s item is automatically
locked when the owner installs it
on the front wheel of the bicycle.
• When the owner get close to the
bicycle, it is automatically
unlocked.
•
45
46. 8. The Example of ICT Start-up
- OPUS ONE
• OPUS ONE’s item is the smart umbrella.
• This umbrella checks the weather for the user and tells the day
when the umbrella is needed.
46
47. Reference
• ‘The startup Cartel’, Young Rok Kim, Min Ji Kim, Tipping
Point, 2017
• http://dcamp.kr/
• https://ccei.creativekorea.or.kr/
• https://www.bagel-labs.com/
• http://www.theopusone.com/kr/index.html
• https://www.bisecu.com/
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