Startup Alliance announced on the 5th the publication of its startup ecosystem trend report, "The Korean Startup Ecosystem Seen Through 12 Years of Data." This report analyzes data from the "Startup Trend Report" published by Startup Alliance and Open Survey over a 12-year period from 2014 to 2025, and compiles a time-series analysis of the changes in perception among ecosystem members, including entrepreneurs and investors.
According to the report, the overall sentiment score for the Korean startup ecosystem has been moving through a series of stages: stagnation, rise, adjustment, and recovery. It began to rise in 2017, peaking in 2021 before plummeting in 2022 amid a worsening investment environment. Beginning in 2024, it entered a gradual recovery phase. These changes mirror trends in the venture capital market, demonstrating that ecosystem perceptions are closely linked to the funding environment.
The assessment of the government's role began in the low 40s in 2014 and rose to 69 points in 2021, demonstrating a long-term improvement. However, there was a temporary decline in 2022-2023, when the investment downturn began in earnest, before a recovery began. Throughout the survey period, the government consistently ranked high on priorities for improvement, including stimulating capital and investment and deregulation. Furthermore, depending on economic conditions, issues such as stimulating M&A and IPOs and securing top talent were highlighted.
There has also been a shift in investor perception. In 2019, the top three venture capital firms accounted for 64% of preferred responses, but by 2024, that proportion had fallen to 26%. This suggests a weakening of preference for specific investors, and a diversification of investor selection criteria based on startup growth stage and industry characteristics.
Long-term changes in perceptions of overseas expansion have also been observed. The percentage of respondents who have considered expanding overseas has declined slightly since peaking at 90.9% in 2021, but has remained in the mid-70% range until recently. Target countries have also expanded, from the initial focus on the US and China to include Southeast Asia, the US, and Japan, with consideration given to both business suitability and feasibility.
Rather than focusing on short-term performance or future predictions, this report focuses on compiling long-term accumulated data to highlight the shifts in criteria and judgments that the startup ecosystem has recognized as important. Startup Alliance expressed its hope that this data will serve as a reference for understanding the current status and structural characteristics of the Korean startup ecosystem.
- See more related articles
You must be logged in to post a comment.