KRYPTON, Korea's longest-running accelerator, pursues growth with startups focused on "essence."
– Focused investment in ‘world-changing ideas,’ ‘ultimate solutions,’ and ‘scalability.’
– Creating differentiated results through on-site training and intensive support based on an apprenticeship-based organizational culture.
The Living History of Korea's Accelerators
Founded in 2000 as a venture incubator, KRYPTON is one of Korea's oldest accelerators. Beyond simple capital injection, it has established a "company builder" model in Korea, working as one with companies from the early stages to drive growth.
KRYPTON CEO Yang Kyung-joon, guided by the mission of "changing the world through businesses," has fostered countless innovative companies over the past 26 years. "We are probably the only company that has maintained its identity from its beginnings as a venture incubator to its current Accelerator (AC) system," he explained. "Our role is not simply investing; it's about deeply intervening when companies truly need our help and supporting their growth."
In fact, KRYPTON focuses on close care by keeping the number of managed companies to around 20 to maintain professionalism rather than excessive external expansion.
The Success Story of 'Contact' and its 'Global' Milestones
KRYPTON's capabilities are proven by its past achievements. A prime example is Contec, a space startup that successfully listed on the KOSDAQ in 2023. At a time when the space industry was still largely unfamiliar, CEO Yang boldly discovered Contec and fostered its growth. This is a symbolic milestone, demonstrating how domestic ACs should foster technology-intensive industries.
Recently, the company has been expanding into deep tech fields that address societal challenges, such as blockchain-based fourth-generation identity authentication technology. CEO Yang stated, "Even if it's a field that may seem unfamiliar to investors, we're willing to take risks if it's a technology that solves social problems."
KRYPTON's next plan is to become a "global outpost for K-startups." This will involve building a robust local network in each country, helping domestically founded companies expand globally and assisting with practical tasks like incorporation. Through these success stories, KRYPTON is providing guidance for the entire industry.
"We must break away from the formalism of 'batch programs'."
Over the past few years, the domestic startup investment market has been frozen, leading to speculation about an "Accelerator (AC) crisis." Reflecting on the industry's turbulent journey, CEO Yang spoke calmly yet sharply, emphasizing the need to restore the essence of ACs. He not only anticipated the difficulties ACs were currently facing as early as 2019, but also warned of the pitfalls of standardized "batch programs."
"The essence of AC is to exponentially grow a business. However, it's also true that many current programs are formalized and fail to drive tangible growth. In a situation where investments are not repaid, the only way to survive is to compete on merit."
CEO Yang advised that AC should go beyond being a simple early investor and return to its original mission of "promoting growth" to focus on its original role. "In an era where it's difficult to find a successful company, AC must demonstrate its own technological capabilities to enhance the company's value," he argued.
"AC is a public good; we must prevent it from becoming a contractor."
Finally, CEO Yang called for policy changes to foster the healthy development of the startup ecosystem. He emphasized the need to clearly define the roles of ACs and VCs.
CEO Yang stated, "ACs are a vital public good in the startup ecosystem." He added, "However, we must not allow ACs to be reduced to mere contractors for government projects, as they are now. We need institutional support that allows them to focus on their core business of fostering startups while securing sufficient revenue."
The KRYPTON story goes beyond simply the story of one investment firm; it illuminates the challenges facing the domestic startup ecosystem. His concise and clear solutions—"essence" and "competence"—will resonate with the crisis-stricken accelerator industry, drawing keen attention to the impact his approach will have.
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