What are the factors that determine the success of a startup? Many entrepreneurs think of innovative ideas or strong capital, but companies that actually survive in the market have a strong team in common. Early startups frequently change direction and face unpredictable variables. Ultimately, what matters is whether there is a team that can quickly adapt and execute in the midst of change. Prime Partner Taejun Noh, who has experience in both the world of startups and investment, emphasizes that “what is more important than VC funding is creating a product that customers want and having it verified in the market.” Let’s take a look at his investment philosophy and startup survival strategy.
What I learned from two experiences: starting a business and investing
“Entrepreneurship and investing are two completely different worlds. But having experienced both worlds, I now know clearly what investors should do for entrepreneurs.”
Noh Tae-jun, a Prime Partner, started his own business while he was in college and received his first investment at the age of 24. He later joined Carrot Market as an early team member and experienced its growth for four years. As the company grew from 20 employees to 400, he experienced how startups grow and what difficulties they face.
“Startups rarely go as planned. The market often reacts differently than expected, and circumstances are always changing. But teams with the ability to execute will find solutions even in the midst of change.”
Now, he looks at startups as an investor, offering realistic advice on common misconceptions entrepreneurs make and the essentials for survival.
The most important factor in investing is the team
The first thing he looks at when evaluating a startup is the team's ability to execute and adapt.
“No matter how good an item is, it cannot last if the team falls apart. On the other hand, a competent team will find a way to survive in the market even if the item changes.”
It is common for early-stage startups to change direction. The idea they had initially envisioned may not be what the market wants, or unexpected variables may require them to change their business model. Ultimately, what matters is how quickly the team can adapt and execute on these changes.
Primer operates a model that is unique in Korea, where partners with startup experience directly make investment decisions without the need for a review committee. Beyond simple capital support, Primer’s role is to think together with entrepreneurs and provide practical mentoring.
“The direction of a startup can only change depending on the market reaction. What’s important is whether the team has problem-solving skills. We look for such a team.”
If you only look at VC money, you will fail. Customers need to open their wallets.
“One of the most common mistakes startups make is to make raising money their first goal. But the most important thing is to build a product that customers actually want.”
Although startups are struggling as the investment market shrinks recently, he says good companies can grow even in a crisis.
“Having a lot of money doesn’t necessarily mean you’ll succeed. Ultimately, what matters is making a product that customers want and whether users actually choose it.”
In order for startups to survive in the market, they need to be chosen by customers, not by VCs. This means that they need to be verified in the market before receiving investment.
“You need to be able to execute quickly and evolve your product while observing customer reactions. In the end, a team with problem-solving skills will be able to establish itself in the market. It is not the investment, but the customer reaction that determines success or failure.”
From this perspective, attracting investment is merely a means to grow a business, and cannot be a goal in itself.
A strategy that takes the global market into account is needed.
Partner Noh Tae-jun says that the changing demographic structure of Korean society could be a crisis for startups in the future. That is why he emphasizes that they should keep the global market in mind from the beginning of their business.
“In the future, it will be difficult to consider only the Korean market. Now, startups need to consider entering the global market.”
In the case of certain industries, even if they monopolize the market in Korea, the scale of growth is limited. That is why a strategy targeting the global market is necessary. Partner Noh Tae-jun was with the start of the Carrot Market global team.
“Startups that succeed in overseas expansion design UX and customer strategies that take overseas markets into account from the beginning. It is important to understand the needs of local customers and optimize products accordingly, rather than simply translating languages. Ultimately, a team that can directly communicate with global customers and localize products will be competitive overseas as well.”
The success of a startup is ultimately determined by the ‘team’
There are various factors that determine the success of a startup, but Partner Noh Tae-jun emphasizes that the team's execution ability and problem-solving ability are the most important.
Initial ideas can change, and market conditions can change at any time. However, strong teams find answers even in the midst of change. On the other hand, teams that lack execution ability will fall behind in the competition no matter how good their items are.
“For a startup to survive, it must be validated in the market before receiving investment. If you create what customers want and have a team that moves quickly, you will definitely grow.”
Primer is not just an investment firm. Partners with startup experience make investment decisions directly and help set the direction and execution of startups. Primer’s role is not simply to provide capital, but to support startups to achieve sustainable growth as the closest advisor to the entrepreneur.
The path to startup success ultimately lies in building a strong team and executing quickly.
If you want to survive in a changing market, then it is important to check your team's execution ability before attracting investment.
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