The Next Billion-Dollar South Korean Startups

 

There has been a relative lack of emerging “unicorns” among Korean startups, but according to CB Insights, more than nine Korean startups have recently reached the rank of unicorn. (A unicorn is a privately owned startup company valued at over USD 1 billion.) Coupang, Krafton, Yellow Mobile, Woowa Brothers, L&P Cosmetics, WeMakePrice, Viva Republica, yanolja, and GP Club have all been named unicorns, and seven of these companies achieved their unicorn rank very recently. As evidenced by this increase in unicorns, the Korean startup ecosystem is continuing to grow and mature. Korea is in 5th place together with Germany in the global unicorn ranking. The United States tops the chart with 178 unicorns, followed by China (91), the United Kingdom (19), and India (16).

 

Korea’s successful rise in the unicorn rankings can be seen as the result of the mobile revolution and venture boom in Korea that started in the late 2000s. Currently, the startup ecosystem in Korea is flourishing as investors are raising a lot of new money to find the next unicorn, and there are more opportunities than ever before. As the number of new venture investments and newly established corporations continues to rise, a second venture boom is becoming more visible.

 

According to the Korea Startup Index 2018, published by Born2Global Centre, the investment of venture capital in Korea is showing steady growth. The amount of new venture capital investment in Korea has been increasing since 2012. New venture investments increased 15.2% from January to May this year, reaching a record high of USD 1.259 billion (KRW 1.4894 trillion).

 

Jongkap Kim, Chief Executive Director of the Born2Global Centre, said, "The active launch of Korean startup businesses has heightened our hopes for the birth of the next unicorn. There are a number of promising companies now on the scene. One such company is SendBird, which started its business in Silicon Valley and gained fame and secured investments directly from local and overseas markets. In this and similar ways, Korean startups are producing astonishing results in foreign countries. We have seen hundreds of these success cases in the past five years. We look forward to the day when Korean companies will go beyond the level of unicorn and pursue different challenges to achieve the rank of decacorn.”

 

The Born2Global Centre has searched far and wide to find the nation’s next unicorns, and it lists the following companies as the most promising unicorns in Korea.

Here are 10 South Korean startups that are quickly galloping toward the coveted unicorn rank.

 

Founders

: Sean Sunbeom Gwon (CEO), Seungjae Lee

Estimated Total Funding

: USD 10 million (KRW 11.8 billion)

Last Funding Type

: Series A

Lead Investors

: Coolidge Corner Investment, Industrial Bank of Korea, Korea Software Financial Cooperative, Hanwha Investment & Securities, Pathfinder H, MORU Asset Management, E&F

Ecube Labs (www.ecubelabs.com) is a startup that specializes in environmentally-friendly garbage collection and management. The company independently developed the Clean CUBE, a garbage container that uses solar power to compress waste, and CCN (Clean City Networks), a service that monitors garbage collection and processing as well as the amount of garbage collected. By using solar energy to compress garbage, Clean CUBE can hold more than eight times the amount garbage that can be stored by conventional containers of the same size. CCN measures the amount of garbage inside a Clean CUBE to help establish an effective collection route. Ecube Labs has already successfully expanded overseas. Thanks to the positive responses it received in the U.S., Belgium, and Australia, it is rapidly gaining dominance in the global waste market. In 2018, the company signed a Smart City Contract worth USD 15 million (KRW 17 billion) with the city of Baltimore. The company plans to install at least 5,000 more Clean CUBEs within the next three years.

 

Founders

: Dongmin Kim (CEO), Wontae Kim (CEO)

Estimated Total Funding

: USD 31 million (KRW 37 billion)

Last Funding Type

: Pre-IPO

Lead Investors

 

: KB Investment, KTB Network, Find Value Asset Management, SL investment, Medici Investment, BNH INVESTMENT, INTERVEST

 

JLK Inspection (www.jlk-inspection.com) provides medical solutions through AI-based technology. JLK Inspection’s technology assists medical practitioners with detecting and monitoring more than 30 medical conditions. This includes: Alzheimer's, strokes, prostate cancer, lung cancer thyroids cancer, breast cancer and joint disease. JLK's AI-enabled image analysis technology can cover MRI, CT, X-ray and even mammography. JLK received certification approval from the Korean FDA as a class III device, obtained European CE certification from European Medical Device Directive (MDD). JLK Inspection had received an accumulated total of USD 31 million (KRW 37 billion) in investments from VCs such as KB Investment, KTB Network, and Find Value Asset Management. The company is now preparing for its expected listing as a “Technology-Based Special Listed Company,” a newly-added KOSDAQ category.

 

Founders

: Jaehyeok Kim (CEO)

Estimated Total Funding

: USD 5.8 million (KRW 6.8 billion)

Last Funding Type

: Series A

Lead Investors

 

: KB Investment, Kakao Ventures, NAVER Corporation, Korea Asset Investment Securities, Platinum Technology Investment, DSC Investment

 

LetinAR (www.letinar.com) develops and provides optic solutions for lenses that are used in AR glasses. With its independently-developed Pin MR technology, LetinAR overcomes the technological limitations of existing AR glasses (related to focal point, breath of vision, etc.) and aspires toward the commercialization of AR glasses. LetinAR’s Pin MR lens is based on technology that applies the principles of pinpoint vision to micro-mirrors. The technology enables the sharp focus of vision and the color expression of AR objects, regardless of environment, and can be directly applied to the small and lightweight platform that is embodied by AR glasses. To date, LetinAR has received a total of USD 5.8 million (KRW 6.8 billion) in investments from companies such as KB Investment, Kakao Ventures, NAVER Corporation, Korea Asset Investment Securities, DSC Investment, and Platinum Technology Investment.

 

Founders

: Beonseok Brandon Suh (CEO), Anthony Paek, Donggeun Yoo, Jungin Lee, Kyunghyun Paeng, Minhong Jang, Sunggyun Park

Estimated Total Funding

: USD 17 million (KRW 21 billion) 

Last Funding Type

: Series B

Lead Investors

: SoftBank Venture, Intervest, Kakao Ventures, Mirae Asset Venture Investment, KT investment, Formation 8, Legend Capital

 

The AI healthcare startup, Lunit (www.lunit.io), is known for its development of “Lunit Insight,” a medical device that utilizes video data and deep learning technology to identify cancerous lung tumors. Lunit Insight uses AI-based, real-time medical video analysis software and chest X-ray technology to make real-time diagnoses of pulmonary disorders. The device is currently being used by Seoul National University Hospital to diagnose/interpret videos of patients’ symptoms. In 2018, Lunit completed its Series B round of investments, attracting a total of USD 17 million (KRW 21 billion) in investments from SoftBank Ventures, Intervest, Kakao Ventures, Mirae Asset Venture Investment, KT investment, Formation 8, and Legend Capital. Lunit is currently preparing to be listed on the KOSDAQ next year in 2020.

 

Founder

: TaeJoon Yoo (CEO)

Estimated Total Funding

: USD 22.3 million (KRW 26.3 billion)

Last Funding Type

: Pre-IPO

Lead Investors

: LB Investment, BSK Investment, IBK-NH Small-Giant PEF, Q CAPITAL PARTNERS, Hana Financial Investment, Industrial Bank of Korea, BNK Capital, ETRI Holdings

 

MindsLab (www.mindslab.ai) is a startup that specializes in AI technology, which is characterized by an array of integrated functions associated with language, vision, and the ability to think. MindsLab’s major business areas include its AI hybrid customer center, AI-based smart factory/city, AI English education, AI robotics, and AI consulting services. The company recently secured a Series C investment of USD 15 million (KRW 17.3 billion), resulting in a cumulative total of USD 22.3 million (KRW 26.3 billion) in investments. Some of its main investors include LB Investment, BSK Investment, IBK-NH Small Giant Private Equity Fund, Q CAPITAL PARTNERS, Hana Financial Investment, Industrial Bank of Korea, BNK Capital, and ETRI Holdings. MindsLab plans to use these investments to strengthen its R&D, maximize the potential of existing projects (AI Hybrid Contact Center, etc.), and expand into foreign markets. The company is also the only international member of Amii (Alberta Machine Intelligence Institute), one of the top three AI research institutions in Canada, a country that is renowned for the strength of its IT industry. MindsLab was included on a list of 10 breakout Korean startups that was published by Forbes Asia in 2017.

 

Founders

: Ethan JaeSeok Lee (CEO), Jinwook Nujabes Baek, JinWook Baek, Sure Bak, Woosup Shin

Estimated Total Funding

: USD 22.3 million (KRW 24.9 billion)

Last Funding Type

: Series C 

Lead Investors

: KTB Network, Stonebridge, Yellowdog, SoftBank Ventures, Samsung Venture Investment Corporation, Formation 8, Golden Gate Ventures, Bokwang Investment

Founded in 2011, MyMusicTaste (www.mymusictaste.com) is a startup for the planning and conducting of K-pop performances overseas. Its most noticeable strength is that it uses big data to predict concertgoer demand (i.e. whether enough people in a certain region/country wish to see a certain concert/performance). K-pop stars who have given global concerts through MyMusicTaste include BTS, Exo, Apink and GFriend. Last year, the company recorded USD 11 million (KRW 13.1 billion) in sales (37.9 percent higher than in 2017). Thus far, MyMusicTaste has received a combined total investment of USD 22.3 million (KRW 24.9 billion) from companies such as KTB Network, Stonebridge, Yellowdog, SoftBank Ventures, Samsung Venture Investment Corporation, Formation 8, Golden Gate Ventures, and Bokwang Investment. Its overall value is believed to have more than doubled since the completion of its Series C funding in 2017. The company is now preparing to be listed on the KOSDAQ next year.

Founder

: Jeong Gyoun Han (CEO)

Estimated Total Funding

: USD 34 million (KRW 40 billion) 

Last Funding Type

: Series B

Lead Investors

: SK Telecom, LB Investment, Capstone Partners, Korea Development Bank, AJU IB INVESTMENT

 

Since its founding in 2013, 12CM (One-two-cee-em, www.12cm.co.kr) has created subsidiaries and joint ventures in seven countries, including Japan, the US and China. It has attracted over USD 34 million (KRW 40 billion) in investments and is rapidly growing as a leading O2O/fintech company with a business model that combines cloud-based software, smart stamp hardware and authentication services. echoss stamp is a format that involves stamping directly on the mobile phone screen. Each stamp has a unique identifying geometric pattern and is activated by static electricity from the human body. echoss stamp is currently protected by approximately 220 patent rights. With 12CM echoss stamp service available over 20 countries around the world. Currently, approximately 520,000 people are using 12CM’s source technology to operate mobile businesses. The company achieved over USD 8.4 million (KRW 10 billion) in sales in 2018 and is now preparing for its expected listing as a “Technology-Based Special Listed Company,” a newly-added KOSDAQ category.

 

Founders

: Youngjun Jang (CEO), Jaewe Heo

Estimated Total Funding

: USD 23 million (KRW 27 billion) 

Last Funding Type

: Series C

Lead Investors

: Premier Partners, AlpenRoute Asset Management, DSC Investment, IMM Investment, Korea Growth Investment Corporation, D Ventures Private Investment Fund

 

Riiid (www.riiid.co) has secured USD 18 million (KRW 20 billion) through its Series C funding round, which was led by Premier Partners, AlpenRoute Asset Management, DSC Investment, IMM Investment, Korea Growth Investment Corporation, and D Ventures Private Investment Fund. Riiid, an AI tutoring solution startup, has published the results of its research on its one-on-one AI tutoring deep-learning technology in an academic journal and is currently providing independently developed AI technology as a B2B solution known as "santA.Inside." Having already secured a cumulative total of USD 18 million (KRW 20 billion) in R&D investment, Riiid will be using most of its recently raised Series C investment to conduct R&D and further enhance santA.Inside. The company continues to receive acknowledgment for its AI technologies not only in Korea but in the United States, China, and Japan as well, with a total of 41 registered patents and patent applications.

 

Founders

: John S. Kim (CEO), Brandon Y Jeon, Forest Lee, Harry Kim

Estimated Total Funding

: USD 120.7 million (KRW 139 billion) 

Last Funding Type

: Series B

Lead Investors

: ICONIQ Capital, Shasta Ventures, August Capital, Y Combinator, FundersClub, Tiger Global Management

 

SendBird (www.sendbird.com) is a chatting/messaging platform that enables messages and/or conversations to be exchanged via PC or smartphone. Created using superior technology, SendBird now has over 1 million people all over the world who simultaneously use its services and can process over 500 million message transmissions per day. SendBird can also connect its chat functions to any of 14,000 applications and/or services worldwide. Its clients are primarily multinational corporations, including Reddit, NBA, Yahoo Sports, KB Financial Group, Shinsegae, LG UPlus, and SBS. Recent investors in SendBird include ICONIQ Capital, Shasta Ventures, August Capital, Y Combinator, FundersClub, and Tiger Global Management. The company’s headquarters are located in San Mateo County/Silicon Valley.

Founders

: Minseok Kim (CEO), Ryan Lee

Estimated Total Funding

: USD 12 million (KRW 13.7 billion) 

Last Funding Type

: Series A

Lead Investors

: DT Capital, IBK Capital, KDB Capital

 

Founded in 2010, SmartStudy (www.smartstudy.co.kr) is a global content startup that utilizes mobile content as a foundation for smart education projects and life services. The company is already being widely recognized as a global business and has captivated users around the world (recently included in a Billboard ranking) with its independently-developed content (such Pinkfong and the Shark Family) and outstanding mobile technology. In addition to creating video content, SmartStudy operates a mobile application that features its animated characters and, to date, the app has been downloaded approximately 150 million times by users in 112 countries. SmartStudy recorded USD 34 million (KRW 40 billion) in total sales in 2018 and approximately USD 6.8 million (KRW 8 billion) in sales profits. Its goal for 2020 is to be listed on the KOSDAQ. 

 

 

 

For more detailed information, contact Born2Global Centre.

 

About Born2Global Centre

Born2Global Centre (www.born2global.com) is a full-cycle service platform for global expansion. Since inception in 2013, Born2Global has been setting the standard for successful startup ecosystem as the main Korean government agency under the Ministry of Science and ICT. Born2Global has expanded and transformed startups to be engaged, equipped and be connected with the global market.

 


MyMusicTaste, a member company of the K-ICT Born2Global Centre, is a global fan-initiated service for live events. MyMusicTaste connects artists and fans by allowing fans to request their favorite artist's concert in their city and planning events based on the analysis of the requests. With the majority of its users located overseas, MyMusicTaste has certainly earned its reputation as a global live event making service that amplifies the voices of fans all over the world.



MyMusicTaste is a global performance planning service that connects artists with fans.



MyMusicTaste was launched by CEO Lee Jaeseok in 2013. Originally a game developer, Lee was in charge of supplying Nexon's Maple Story in the United States and Europe from 2006 until 2009. After witnessing the explosive growth of the Maple Story development team following the company's acquisition by Nexon, Lee began dreaming of starting his own company. An avid Coldplay fan, Lee came up with the idea for MyMusicTaste while trying to find a way to attend a Coldplay concert in Korea.

Lee said, "Entrepreneurship is the process of making something from nothing. Creating a company in an area in which one has no connections or prior experience is a challenge. However, my experience as a game developer was a great help in our efforts to imbue MyMusicTaste with a 'master artisan spirit' and our consistent interactions with users around the world."

Growth into a truly global service

In the first four years after its founding, MyMusicTaste planned 147 concerts in 52 cities in 32 countries. The concerts were held in a diverse range of countries and continents, including Southeast AsiaNorth America, and various countries in Europe. Artists who have worked with MyMusicTaste range from famous musicians such as EXO, BTS, and The xx to lesser-known musicians. Befitting the company's reputation as a global concert organizer, 99 percent of all its 1.35 million users are based overseas. In addition to the 41 employees at its Korean headquarters, the company also employs staff at its overseas offices.

Performances organized by MyMusicTaste always begin with requests from fans. After it receives fans' requests for a concert by their favorite artist, MyMusicTaste determines the ideal city and scale for the concert and then contacts the respective artist and begins planning the performance. Because MyMusicTaste comes to the negotiation table already armed with data on concert demand, it is much easier for both the artist and the agency to organize the overseas concert or tour. Approximately 75 percent of the company's business involves organizing overseas performances by Korean artists, while 20 percent involves organizing performances by foreign artists in foreign (non-Korean) cities.

Lee said, "Most artists are looking to generate large profits and interact with their fans from all corners of the world through international tours. It is based on this need that we get a sense of the market and plan the tour. Generally, the majority of concerts are held in major cities in developed countries, such as Los AngelesNew YorkParis, and London. Performances in cities such as MadridLisbonBudapest, and Istanbul are held with the aim of broadening a tour's scope of venues to include lesser-known metropolises. In fact, it is in such cities that demand for concerts is especially high."

"Companies do not survive because they are strong; they are strong because they have survived."

MyMusicTaste has successfully crossed the "valley of death" that all startups encounter in their early years: financial hardship. Lee said, "From 2014 until early 2015, we managed to struggle through the 'valley of death' thanks to our founding members' decision to forego being paid. Having endured that experience, I now realize that companies do not survive because they are strong; they are strong because they have survived."

MyMusicTaste's sales and number of tickets sold have been more than doubling every year. In early November, the company attracted an investment of KRW 12.3 billion, which it will use to expand its overseas offices and diversify the genres of performances it plans in North America.

Lee said, "The investment we received in November will be used not to help us survive but to continue growing our company. Going forward, we plan to diversify the genres of concerts we host around the world to include hip-hop and rap and increase the size of our overseas offices so that they can take on greater roles and responsibilities."

Lee emphasized, "If your aim is to change the paradigm of the performance industry, it is not enough to simply pool the resources of several teams or institutions. So far, we have received a lot of assistance from overseas investors."

"The full support of the Born2Global Centre has been a big help."

Lee explained that the support provided by the Born2Global Centre was a great help for the company its efforts to connect with fans and organize concerts in new cities.

He said, "Out of desperation to keep themselves afloat, startups often end up focusing on government projects, which usually makes it very difficult for them to grow their key businesses. In this respect, we benefited a great deal from the Born2Global Centre's enthusiastic support of our core global business endeavors."

Bringing happiness to global music fans

Including its initial analysis of overseas demand for concerts, MyMusicTaste is involved in various aspects of concert preparations, including scheduling, concert venue reservation, and stage direction. Not only is it a technology-based company that uses IT to analyze data, it is also an O2O company in that it directly organizes offline performances.

The vision of MyMusicTaste is to bring happiness to music fans worldwide. Toward this end, it has thus far been involved primarily in live event planning, including concerts, fan meetings, and showcases, but hopes to expand its areas of business. Lee added, "We are also seriously considering expanding into the auxiliary product and commercial business areas related to live events. Basically, what we do is analyze fans' activities in order to maximize their happiness."

For more detailed information on the MyMusicTaste, visit https://www.mymusictaste.com/

 

 


https://techcrunch.com/2017/11/07/mymusictaste-which-allows-fans-to-request-live-events-gets-11m-series-c/a

 

 

 

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MyMusicTaste brings together fans, artists, and promoters to support and organize concerts all around the world.

 

 

 

 

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