• The Korean Journal of Financial Management
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• v.20 no.1
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• pp.29-60
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• 2003

This study investigates the certification role by the types of venture capitalists in KOSDAQ IPOs. The sample covers 88 venture companies listed on KOSDAQ from January, 1997 to December, 2001. The major results are as follows. Firstly, IPOs of firms backed by New Technology Business Investment Companies are less underpriced than those of firms backed by Small Business Investment Companies. The underpricing difference between two groups is statistically significant. This sheds light on the evidence of the certification role of venture capitalist in KOSDAQ IPOs market. Secondly, our result also attests the certification role by the types of venture capitalists among Small Business Investment Company. IPOs backed by yen拉re capitalists of financial institutions are less underpriced than those backed by venture capitalists of individual wealthy investors. The underpricing difference between two groups is statistically significant. Finally, underpricing of New Technology Business Investment Company-backed IPOs is less than that of Small Business Investment Company-backed IPOs. In addition, we found that the size of underpricing is affected by business history, sub-scription ratio, and total assets prior to registration.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.15 no.5
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• pp.99-112
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• 2020

This study empirically analyzed the relationship with major influencing factors in enhancing innovation capability of start-ups and their influence on innovation performance. If the existing innovation competency studies were analyzed from a general corporate perspective, In this study, it was analyzed from the perspective of start-up companies with less than 7 years of founding. As a result of a survey on startups, learning competency among the sub-variables of innovation competency, R&D competency and marketing competency are significant positive (+) consistent with both organizational competence related to organizational culture and organizational goals, technology commercialization competency, and close product competency. Has been shown to affect. The technical competence part does not have a significant effect on the product competency. However, it could not be interpreted that the importance of these competencies was low. This is because although technical competence did not directly affect product competency, it was analyzed as a meaningful result in relation to R&D competency. In addition, the characteristics of the company were classified into technology orientation and market orientation, and the relationship between each sub-variable was analyzed. The technical competence of a technology-oriented company did not have a significant effect on the product competency, but it was found that it had an effective effect on the R&D capacity. It is also consistent with the research findings that the initial survival rate is low as the characteristics of start-ups are often based on technology and ideas. Based on these results, There is a difference in major innovation capabilities according to the growth stage of a company. From a practical point of view, I would like to present approaches and implications for strengthening the competence of start-ups.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.1
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• pp.1-19
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• 2021

The purpose of this research is to improve the investment success rate for startups in the water industry for the development of the entrepreneurial environment of the Korean water industry. In this research, we identified investment determinants through prior research and stratified them, and then surveyed the investor group at the beginning of the start-up using the FGI method, and determined the order of the investment determinants of investors. At the same time, we classified 41 start-ups related to the water industry into two groups: the group that received investment and the group that did not in the early stages of the start-up. Then we investigated the understanding of the investor's investment determinants, ranked them, and compared them by using the AHP technique. Through this, this research proposes five implications. First, it is important for start-ups in the early stages to receive seed investment to revitalize investment for startups in the water industry. For this, startups need to understand investors and prepare to attract investment with the perspective of angel investors rather than the perspective of VC investors. Second, Start-ups in the water sector should consider that the characteristics of the founder are important in order to receive seed investment, and also need to define their business at the industry and market level, and provide relevant rationale to meet the expectations of investors who value industry expertise and experience, and to increase the possibility of seed investment, which is important in the early stages of a startup. Third, institutions, such as K-water(Korea Water Resources Corporation), that support water industry startups need to conduct open innovation business opportunities discovery programs linked to startups so that startups currently participating in the startup support program could have business opportunities from the business infrastructure of platform-forming companies in the water industry. In particular, such institutions should help founders develop their industrial expertise and careers by supporting this type of start-up preparation process through the participation of in-house venture founders. Fourth, when K-water uses the government start-up support fund to discover and foster founders, it should increase initial contact with seed investors, conduct more thorough verification of business plans, and develop programs that use government start-up support funds to prepare a business suitable for seed angel investors. Fifth, K-water should support seed by connecting funds for initial investment among funds operated by itself. It is also necessary to develop a program that links the company receiving the seed investment with VC investment, not angel investment in cooperation with the VC fund operation entity participating as an LP so that companies that have attracted seed investment could attract follow-up VC investment.

• The Journal of the Korea Contents Association
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• v.15 no.12
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• pp.541-549
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• 2015

Research about U.S. and European countries demonstrated that startups and young firms account for nearly all net job creation. If we want to bring down unemployment and to increase economic growth rate, we need to create new companies and to make them to grow. Credit availability is one of the most important factors for entrepreneurs as they attempt to start or expand a business. For young firms, access to credit for business growth can mean the difference between survival and failure. Equity crowdfunding is an innovative means of raising capital for businesses. Crowdfunding campaigns can give new business access to a large pool of investors. This brings huge benefits for marketing and increase provability of success of business and ROI, so it leads follow-on investment from Venture Capital and Angel investors. In Korea, the survival rate of startups and average growth rate of survivors is far lower than those of the U.S or other countries due to lack of funds for startup or early business growth. Equity crowdfunding can be a new funding source for venture or startups. It can increase startup and survival rate, in addition to the growth rate of survivors, resulting in decreased unemployment rate. In Korea, Equity crowdfunding will be available from 2016. Further study is needed to determine whether the impact of crowdfunding in Korea on job creation will be similar to its impact in the U.S.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.3
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• pp.97-109
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• 2016

In Korea, the survival rate of start-up of 5-year after foundation is as low as 29.6% of the country. This low survival rate is from because of insufficient resources in start-ups compared to those of mid-sized companies. Therefore, the marketing characteristics of entrepreneurship has emerged as a major cause. Therefore, In this study, because learning orientation, marketing experience, competition orientation and etc are differently owned in start-ups, marketing impact to marketing strategy in start-up companies are differently investigated. Therefore, the relationship of learning orientation, marketing experience, competition Orientation with marketing strategies was examined. Based on this, Business performance was examined to suggest contents related to eco-system of start-up companies to representative of start-up companies. For this study, Survey was conducted for 250 start-up entrepreneurs within 3 and half year since foundation from Nov. 20 to Dec. 20, 2015. In result of data-cleaning, 207 meaningful samples were gathered. Based on these, conclusion was obtained. Using SPSS 20.0 statistical program, frequency analysis, reliability analysis, correlation analysis and regression analysis were conducted. the following conclusions were drawn. First, in the impact of marketing environment of Phase 1 start-up companies on marketing strategy, product strategy, distribution strategy and promotion strategy were positively affected by learning orientation, marketing experience and competition orientation. Second, in the effect of 2nd phase marketing strategy to business performance, the financial performance and the non-financial performance. Were positively affected by product strategy, distribution strategy and promotion strategies. Third, The effect of learning orientation, marketing experience and competition orientation to financial performance was positively mediated by product strategy and distribution strategy among 3rd phase meditation strategies. the effect of learning orientation, marketing experience and competition orientation to non-financial performance was positively mediated by products strategy. In comprehensive summary, in order to increase business performance in start-up companies, marketing strategy should be applied in. Especially, the role of learning orientation and marketing experience is vital. In increasement of business performance to characteristics of star up marketing, financial performance can be increased by product strategy and distribution strategy. And, both of financial and non-financial performance can be increased by product strategy. Therefore, in conducting of marketing characteristics of start-up, to increase business performance, the apply of marketing strategy to marketing characteristics of start-up should be required.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.13 no.6
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• pp.27-38
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• 2018

The purpose of this study is to find out common investment decision factors for CVC's invested technology-based startups and analyze them. We examined 17 CVCs that invested in technology startups for three years and six months from 2015 to June 2018. As a result, the final 9 CVCs that can be used in this study were confirmed and 188 companies were analyzed. This study was conducted as a case study to propose and demonstrate CVC investment objectives and investment decision factors analysis model. The results of this study are as follows. First, CVC focused on strengthening investment. Second, In 2015, Invested in an average of 19 months of technology-based startups. In recent years, we invested in 36 months of proven technology-based startups. Thirdly, ICT service was the main business type of the invested startups. Fourth, the investors were concentrated on the stage of Series A~B. It is observed that CVC investment determinants have a significant impact on product or service and parent company relations. In addition, it was found that factors such as innovation, business planning competency, enterprising, strategic competency, leadership, and opportunity recognition competency were influential factors for the startups of invested companies and it was found that these factors are important for CVC investment decision. Understanding of CVC investment determinants presented in this study is based on the establishment of the investment process of the investee, entrepreneurship and management education program. The results of this study can be applied to the selection of excellent startups, entrepreneurship education programs, mentoring, development of coaching guidelines, and establishment of investment process of other investment institutions when investing in CVC.

• Korean small business review
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• v.43 no.1
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• pp.165-186
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• 2021

Startups are undergoing a change throughout the growth process of startups that appear in existing studies as they move away from the existing B2B or B2C frame and expand their target customer groups to O2O, C2C. In this regard, a new type of startup known as unicorns, a unicorn which has grown rapidly in a short period of time, is being created by successfully attracting government support and external investment in recognition of the potential value of the startup. This study examined the relationship between investment attraction and growth after founding for five representative unicorns in the U.S. and Korea. As a result, it was found that private investment in Korea is passive and defensive, and is attracted after the Series A stage, compared to the U.S., where the growth potential of the startup ecosystem is positively evaluated. In addition, it found that government's support policy throughout the startup's growth process is an abstract and comprehensive policy focusing on initial funding for startups. Therefore, it was suggested that the scope of government policies should be expanded to forster startups as unicorns, and that it is necessary to establish and implement differentiated support policies for each growth of the scale-up of startups. This study is significant in that it presented the criteria for the growth stage and support of startups as well as policy support for scale-up through practical case analysis of unicorns.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.1
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• pp.69-82
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• 2015

This Research is based on the theory of the prior researches that have demonstrated a positive impact of the entrepreneurship and competitive advantages on business performance. And the purpose of this research which approaches in the viewpoint of combining a entrepreneurial attribute including two factors(entrepreneurship and commercialization capabilities) and the differentiated competitive advantage as a role of core competence is to examine how the combined competence affects the business performance. In order to achieve this purpose, we conduct a survey for CEO of 250 small firms which belong to the start-up phase and are located in the 6 administrative region with the assistance of Small & Medium Business Administration representatives and analyze empirically the survey data by utilizing statistical program(Spss 18.0). As the results, we conclude that the entrepreneurial attributes of small firms' CEO and DFCA have a positive impact on business performance respectively and the entrepreneurship, one of the two entrepreneurial factors, has a positive impact on choosing DFCA. Also we report that DFCA plays a mediating role with regards to relationship between entrepreneurial attributes and business performance. Therefore, this research suggests the followings: First, the CEO of start-up business should focus on building a differential competitive advantage which is the basis for creating competitiveness from the initial point. Secondly, he should make a alignment for core competencies, in order to reach the stable growth phase in the shortest period, through which the entrepreneurial attributes is to be inherent as a discriminatory competitive competence. Third, he should promote to establish a business strategy based on strengthening of entrepreneurship and discriminatory competitive as a growth strategy during start-up phase.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.5
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• pp.91-107
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• 2023

Lean startup is a concept that combines the words "lean," meaning an efficient way of running a business, and "startup," meaning a new business. It is often cited as a strategy for minimizing failure in early-stage businesses, especially in software-based startups. By scrutinizing the case of a startup L, this study suggests that lean startup methodology(LSM) can be useful for hardware and manufacturing companies and identifies ways for early startups to successfully implement LSM. To this end, the study explained the core of LSM including the concepts of hypothesis-driven approach, BML feedback loop, minimum viable product(MVP), and pivot. Five criteria to evaluate the successful implementation of LSM were derived from the core concepts and applied to evaluate the case of startup L . The early startup L pivoted its main business model from defecation alert system for patients with limited mobility to one for infants or toddlers, and finally to a smart bottle for infants. In developing the former two products, analyzed from LSM's perspective, company L neither established a specific customer value proposition for its startup idea and nor verified it through MVP experiment, thus failed to create a BML feedback loop. However, through two rounds of pivots, startup L discovered new target customers and customer needs, and was able to establish a successful business model by repeatedly experimenting with MVPs with minimal effort and time. In other words, Company L's case shows that it is essential to go through the customer-market validation stage at the beginning of the business, and that it should be done through an MVP method that does not waste the startup's time and resources. It also shows that it is necessary to abandon and pivot a product or service that customers do not want, even if it is technically superior and functionally complete. Lastly, the study proves that the lean startup methodology is not limited to the software industry, but can also be applied to technology-based hardware industry. The findings of this study can be used as guidelines and methodologies for early-stage companies to minimize failures and to accelerate the process of establishing a business model, scaling up, and going global.

• 한국벤처창업학회:학술대회논문집
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• 2023.04a
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• pp.163-166
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• 2023

벤처캐피탈은 유망한 기술력과 우수인력을 갖춘 창업초기단계부터 성장단계의 유망 중소벤처기업에 필요한 자본을 투자하고 경영 및 기술 등을 지원하여 성장 이후 다양한 수단을 통해 투자금을 회수하여 이익을 실현하는 벤처생태계의 핵심주체로서의 역할을 하고 있다. 벤처캐피탈의 업무는 다양한 출자자(LP)를 모집하여 벤처투자조합(펀드)를 결성을 통해 성장성이 있는 중소벤처기업에 투자하고 기업의 성장함에 따라 투자금을 회수하여 출자자들에게 배분과 재투자를 하는 것이다. 벤처투자에 있어 가장 중요한 역할을 담당하고 있는 벤처캐피탈리스트의 업무는 기업발굴, 기업분석 및 평가, 투자심사, 사후관리, 투자회수 등이며 임원급 이상의 경우 펀드레이징(펀드결성)이 중요한 업무이며 투자와 회수 및 펀드결성 등의 업무성과로 연봉, 성과급, 승진 등 보상이 이루어지고 있다. 최근 급격히 성장하는 벤처투자시장에 비해 투자인력은 부족하며 이에 투자성과 제고를 위해 인력양성과 장기근속을 위한 인프라와 시스템을 갖추기 위해 벤처캐피탈은 많은 노력을 하고 있으나 다른 산업에 비해 벤처캐피탈 산업의 연구자체가 부족할 뿐만 아니라 주로 투자수익률 등 계량적인 관점에서 연구가 이루어졌다. 이에 본 연구는 벤처캐피탈리스트가 소속된 벤처캐피탈의 조직특성 중 권한위임, 직무적합성, 조직신뢰 등이 성과급 등 업무성과에 영향을 미치는 요인을 연구하고 벤처캐피탈의 유형에 따른 조절효과를 중심으로 실증적인 분석하고자 한다.