Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-plugin-hostgator domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the ol-scrapes domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114

Warning: Cannot modify header information - headers already sent by (output started at /home4/scienrds/scienceandnerds/wp-includes/functions.php:6114) in /home4/scienrds/scienceandnerds/wp-includes/rest-api/class-wp-rest-server.php on line 1893

Warning: Cannot modify header information - headers already sent by (output started at /home4/scienrds/scienceandnerds/wp-includes/functions.php:6114) in /home4/scienrds/scienceandnerds/wp-includes/rest-api/class-wp-rest-server.php on line 1893

Warning: Cannot modify header information - headers already sent by (output started at /home4/scienrds/scienceandnerds/wp-includes/functions.php:6114) in /home4/scienrds/scienceandnerds/wp-includes/rest-api/class-wp-rest-server.php on line 1893

Warning: Cannot modify header information - headers already sent by (output started at /home4/scienrds/scienceandnerds/wp-includes/functions.php:6114) in /home4/scienrds/scienceandnerds/wp-includes/rest-api/class-wp-rest-server.php on line 1893

Warning: Cannot modify header information - headers already sent by (output started at /home4/scienrds/scienceandnerds/wp-includes/functions.php:6114) in /home4/scienrds/scienceandnerds/wp-includes/rest-api/class-wp-rest-server.php on line 1893

Warning: Cannot modify header information - headers already sent by (output started at /home4/scienrds/scienceandnerds/wp-includes/functions.php:6114) in /home4/scienrds/scienceandnerds/wp-includes/rest-api/class-wp-rest-server.php on line 1893

Warning: Cannot modify header information - headers already sent by (output started at /home4/scienrds/scienceandnerds/wp-includes/functions.php:6114) in /home4/scienrds/scienceandnerds/wp-includes/rest-api/class-wp-rest-server.php on line 1893

Warning: Cannot modify header information - headers already sent by (output started at /home4/scienrds/scienceandnerds/wp-includes/functions.php:6114) in /home4/scienrds/scienceandnerds/wp-includes/rest-api/class-wp-rest-server.php on line 1893
{"id":33418,"date":"2023-05-27T22:10:33","date_gmt":"2023-05-27T22:10:33","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/05\/27\/profitability-over-growth-5-investors-explain-their-mantra-for-south-korean-startups\/"},"modified":"2023-05-27T22:10:35","modified_gmt":"2023-05-27T22:10:35","slug":"profitability-over-growth-5-investors-explain-their-mantra-for-south-korean-startups","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/05\/27\/profitability-over-growth-5-investors-explain-their-mantra-for-south-korean-startups\/","title":{"rendered":"Profitability over growth: 5 investors explain their mantra for South Korean startups"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/25\/south-korea-investor-survey\/<\/a><\/br>
\nProfitability over growth: 5 investors explain their mantra for South Korean startups<\/br>
\n2023-05-27 22:10:33<\/br><\/p>\n

\n

South Korea\u2019s economic<\/span> model has for decades leaned on export-led manufacturing operated by family-owned corporate giants. A 2015 report from McKinsey<\/a> outlined how the country would need small companies to drive an innovative model in preparation for the next phase of economic growth. \u201cThe key to fostering such innovation is a vibrant startup community. \u2026 Currently, the Korean startup community falls far short of this ideal,\u201d the report said.<\/p>\n

South Korean conglomerates like Samsung, LG and Hyundai still play significant roles in Korea\u2019s primary economic growth; most of them, once focused on manufacturing, are now tech-driven firms.<\/p>\n

Along with the Big Tech giants in South Korea, the country\u2019s startup ecosystem has immensely grown compared to 2014, as have startups in other Asian countries like China, India and those in Southeast Asia.<\/p>\n

Back in 2014, there\u00a0were<\/a> just 10 unicorns \u2014 including Coupang, Naver, Kakao, Line (which relocated to Japan), and game companies like Nexon and N.C. Soft \u2014among 29,561 startups. As of 2022, Korea had 22 unicorns<\/a>, with a valuation of 1 trillion won (approximately $744 million), up from 18 unicorns in 2021. It might not sound like a massive leap from 2014, but the increased number of unicorns is a testament to the hard work being done by Korean startups.<\/p>\n

After the recent pandemic fueled the startup boom worldwide, the startup valuations in South Korea skyrocketed unrealistically just as they did globally. Jumping to the present, the startup funding landscape has shrunk, and valuations have dropped everywhere in the world in the face of uncertain macroeconomic conditions. Venture funding in Asia in the first quarter of 2023 declined 33% from Q4 2023 and 57% from Q1 2022, according to a report by Crunchbase<\/a>.<\/p>\n

We spoke to select investors, who make investments in the South Korean market to hear their predictions for 2023, their investment strategy, which sectors excite them and more.<\/p>\n

All the investors we spoke to said there are barely any changes in their investment strategies but approval for due diligence by committees has become rigorous.<\/p>\n

\u201cThe days of \u2018swiping right\u2019 on a deal are well over, and the required level of due diligence has also reverted to historical norms, taking three to four months rather than three to four days,\u201d said Yeemin Chung, managing director of BRV Capital Management.<\/p>\n

The investors are now advising startup founders and executives to prioritize profitability over growth, extend their runway and prepare to stay agile amid fears of a possible recession.<\/p>\n

And startups are now seeing a drop in valuations compared to the previous two years. Still, in a way, it is healthy as \u201cpeople are approaching it more rationally,\u201d according to Han Kim, general partner of Altos Ventures.<\/p>\n

\u201cI think the current environment might feel a bit harsh for entrepreneurs, but in a sense, it\u2019s doing a favor for the founders that can realistically map their growth path,\u201d said Eunse Lee, founder and managing partner of 541 Ventures.<\/p>\n

We spoke with:<\/p>\n