Seoul, No.1 in Asian cities in financing, and investment attraction by Invest Seoul enhancing potential for Seoul’s star
[소셜밸류=김완묵 기자] Seoul has been selected as the top 10 city globally to start a business. It’s the highest rank for Seoul, and Seoul’s startup ecosystem is valued at 223 trillion won($177 billion).
On June 14(Tues) local time in London, Startup Genome, a global startup ecosystem evaluation agency based in America, announced the Global Startup Ecosystem Report 2022, a survey of 280 cities in 100 countries. Seoul has been selected as the top 10 city, going up six levels from the 16th last year.
This result was announced on June 14(Tue) at 11:00 am local time during “Elevating Founders“, one of the events held in the London Tech Week and a session for the participating companies to attract investment
Becoming the world’s top 10 means Seoul has a world-class startup ecosystem. Seoul has continued to rise in rank from outside 30th in 2019, to 20th in 2020, then to 16th in 2021.
The estimated value of Seoul’s startup ecosystem grew from 47 trillion won in 2020, to 54 trillion won in 2021, then to 223 trillion won this year, achieving higher than a quadruple growth in two years.
ㅇ Outline of Startup Genome and Ecosystem Survey
This year’s global startup ecosystem report contains evaluation and analysis on a total of six items. Seoul was rated high(7 points or higher) on five items: ①Funding, 9 points, ②Knowledge, 8 points, ③Performance, 7 points), ④Connectedness, 7 points), and ⑤Experience & Talent, 7points. And it was rated moderately on ⑥Market reach(5 points).
Last year's performance in funding was somewhat sluggish with five points, but it rose four points this year, driving Seoul's overall ranking rise. The rise in valuation is attributed to the city's continued investment of 2.9 trillion won since 2018 through the Future Innovation Growth Fund, and to the central government's parent funds and the private sector’s active investment efforts.
The city plans to expand policy financing through, among others, scale-up funds. In order to further strengthen domestic startups' market entry and create a private-led start-up ecosystem, the city will expand support for open innovation with large and medium-sized companies with the goal of "discovering 2,000 startups and matching them with 200 large and medium-sized companies by 2024."
In addition, it plans to actively support domestic startups’ entry into overseas markets by securing overseas bases and opening overseas PoC centers.
In particular, Startup Genome evaluated that a large-scale fund recoveries (exit) contributed greatly to raising the value of Seoul's start-up ecosystem, and that Seoul's early-stage funding grew significantly.
Five large-scale fund recoveries (exit), including Coupang, have greatly increased the value of Seoul's start-up ecosystem (54 trillion won in 2021 → 223 trillion in 2022). Investment in the early stage of the start-up increased, enabling Seoul to surpass Beijing and Tokyo to rank first among Asian cities in the "Funding" category.
In addition, the Seoul Metropolitan Government's active and aggressive overseas investment with Invest Seoul, an investment attraction organization, playing a key role, and the Government’s active start-up policies to foster innovative companies by creating a start-up base in each region including Yeouido (Fintech), Hongneung (Bio Medical), and Yangjae (Artificial Intelligence) are evaluated to contribute to enhancing the startup ecosystem’s growth potential.
The city launched Invest Seoul in February 2022, and the Seoul Metropolitan Government directly supports the entire process of market analysis to attracting investment, attracting companies,
and successful settlement of foreign companies in Seoul.
In addition, more than 13,000 companies were raised by continuously establishing a start-up base in each region and industry, such as Seoul Startup Hub Gongdeok, Seoul Startup Hub M+ (Magok), Hongneung Bio Hub, and Yangjae AI Hub.
This year’s global startup ecosystem report has chosen AI&Big Data&Analytics, Life Sciences, and Advanced Manufacturing&Robotics as strong industries in Seoul’s startup ecosystem.
(AI) The city plans to establish a global AI ecosystem by, among other things, designating the Yangjae AI Innovation District as a “Special Economic Zone for Regional Development”(by 2023) and pushing to create public anchor infra including AI support center and AI·R&D campus.
(Bio) Seoul Bio Hub opened in 2017, becoming the first point in the city’s bio cluster. The BT-IT Convergence Center, specializing in digital healthcare, opened in 2021. The city plans to expand the bio cluster, currently centered around Hongneung, to Chang-dong Sanggye(medical), G Valley(medical instrument), Magok(pharmaceutical), thereby establishing a bio ecosystem.
(Robot) The city plans to establish infra and a support system for robot industry incubation including the Suseo Robot Cluster, starting with a “auto driving delivery robot demonstration at COEX and in Teheran Street(June 2022~November 2023).
※ The Suseo Robot Cluster Creation Project : attracting robot companies and creating a robot venture town, constructing core anchor infra, creating test fields, building cooperation governance, etc.
In addition, the city plans to create 10 specialized clusters, connect startup centers by region and growth stage(startup cafe·campus town ➤ mid-size center ➤ seven hubs), and maximize support effect for employment & business creation by running Seoul Software Academy.
※ Mid-size facility : Seoul Startup Didimteo, Youth Startup Kumter, Seoul Startup Center Gwanak
※ Seoul Software Academy : using common space in a startup facility, fostering talents essential for startups
◆ Ten Clusters (Seoul Vision 2030)
- Seven innovation industry clusters : ① G Valley, ② Magok, ③ Yangjae, ④ Hongneung.Chang-dong Sanggye, ⑤ Y Valley, ⑥ Yeouido.Mapo, ⑦ Suseo
- Three culture-tourism fusion clusters : ① Dongdaemoon(beauty.fashion), ② DMC, ③ Jamsil
The global startup ecosystem top 5 are: 1. Silicon Valley(US), 2. New York(US) and London(UK), 4. Boston(US), 5. Beijing(China). Beijing and Boston exchanged their places with the rest the same as last year.
Five Asian cities in the global top 20 are Beijing (5th), Shanghai (8th), Seoul (10th), Tokyo (12th), and Singapore (18th). Compared to last year, Beijing fell from fourth to fifth and Tokyo from ninth to 12th.
◆ Ecosystem Ranking by Continent (2022)
－ North America : Silicon Valley(first), New York(second), Boston(4th), LA(6th), Seattle(9th)
－ Europe : London(second), Amsterdam-Delta(14th), Paris(15th), Berlin(16th)
－ Asia: Beijing(5th), Shanghai(8th), Seoul(10th), Tokyo(12th), Singapore(18th)
Hwang Bo-yeon, head of Seoul's economic policy office, said, "Seoul’s first entry into the top 10 global startup ecosystems is, as Startup Genome announced through its report, the result of the Seoul Metropolitan Government's efforts to create an innovative startup ecosystem where startups in each sector can cooperate and grow.
We will make Seoul leap to become one of the top 5 global economy cities by 2030 by providing various types of support such as cultivating future talents, creating a good investment environment for companies, and supporting promising companies’ global expansion, thereby creating a startup ecosystem where 40 internationally famous unicorn companies are born."
[저작권자ⓒ 사회가치 공유 언론-소셜밸류. 무단전재-재배포 금지]
