INSUBCONTINENT EXCLUSIVE:
Seoul and South Korea may well be the secret startup hub that (still) no one talks about.While often dwarfed by the scale and scope of the
offer by Berlin-based Delivery Hero in a blockbuster $4 billion transaction late this week, representing potentially one of the largest
competitor Yogiyo, and therefore is conditional on regulatory approval
branding was heavy on the illustrations.Five years ago, Baemin was just an app for chicken delivery with a cutesy and creative interface
facing criticism from restaurant franchise owners over fees
Now, its motorbikes are seen all over Seoul, and the company has installed speakers in many restaurants where a catchy whistle and the
ecosystem remain the same as they have always been
A huge workforce of smart graduates (Korea has one of the highest education rates in the world), plus a high youth unemployment and
underemployment rate have driven more and more potential founders down the startup path rather than holding out for professional positions
that may never materialize.What has changed is venture capital funding
simply because there was just no capital to get a startup underway (it was not uncommon among some deals I heard of at the time for a $100k
Goldman Sachs and Sequoia
It has also been at the center of many of the developments of blockchain in recent years, with the massive funding boom and crash that
coming years.Thus, there continues to be a unique opportunity for venture investors who are willing to cross the barriers here and engage
getting insight on what is happening locally
Dedicated startup journalists do exist, but they are unfortunately few and far between and vastly under-resourced compared to the scale of
For Korea, it has startups that target the domestic market (which makes up the bulk of its existing unicorns), plus leading companies in
industries as diverse as semiconductors, gaming, and music/entertainment
My experience is that these different verticals exist separately from each other not just socially, but also geographically as well, making
it hard to combine talent and insights across different industries.Yet ultimately, as valuations soar in the Valley and other prominent tech
hubs, it is the next tier of startup cities that might well offer the best return profiles
For the early investors in Baemin, this was a week to celebrate, perhaps with some fried chicken delivery.
