South Korea is currently discussing an era of "entrepreneurship for all." The government also aims to expand entrepreneurship from a domain reserved for specific technical elites or a few innovators into a social growth strategy that anyone can pursue. Recently, the formation of venture funds and the investment market have shown signs of gradual recovery, with some improvement in investor sentiment. However, these recent signals of recovery in the investment market largely reflect extreme polarization centered on large-scale AI investments or mid-to-late stage ventures. The early-stage startup investment market is still recovering at a sluggish pace.
A particularly worrying area is the angel investment market, which serves as a core pillar of the early-stage startup ecosystem. This sector, which was responsible for providing initial funding to early entrepreneurs, jointly contemplating their direction, and bearing the risk of failure, has not yet sufficiently emerged from its stagnation. Over the past decade, both the government and the private sector have made various efforts to revitalize angel investment. Various systems such as tax incentives, angel matching funds, educational programs, and individual investment partnerships have been introduced, and infrastructure has been institutionalized to a significant extent.
There are still points of regret. In advanced startup ecosystems including the United States, many professional angel investors are recognized as a group with the status of "professional retail investors (Business Angels)" based on their respective expertise. They are not merely individual investors. Based on deep understanding and experience in specific industries, along with networks, they do not simply invest capital; they also provide experience, market sense, and industrial connectivity to uncover the potential of early-stage startups.
In Korea, angel investment is still often perceived as a quiet form of personal financial management or an activity centered on tax incentives. It has not yet fully attained the status of professional retail investors. However, there are many angels in the field who possess significant expertise and industrial experience. There are also quite a few individuals who are former executives of large corporations with deep experience in specific industries, experts at the Lee Hae-ha-neun (Dr.) level in technology along with faculty members, and talents who possess both startup and investment experience.
However, their individual investment activities do not become well-known socially. Due to concerns about conflicts of interest related to their professions or the burden of exposing private activities externally, many are reluctant to reveal their investment facts. Regrettably, as a result, angel investment has not yet been connected to a social role and professional honor.
In an environment where global market competition and uncertainty are becoming increasingly harsh, the early-stage startup ecosystem that will drive South Korea's future growth engine cannot grow with "money" alone. In addition to funding supply, it requires industrial information, technology verification, market networks, and strategic advice simultaneously. It is precisely at this point that angel investment by a "professional group" possessing social and economic expertise becomes even more important. When these individuals begin to actively participate in the early startup market, angel investment will evolve from simple capital provision into "ecosystem connectivity based on expertise."
The Korea Angel Investment Association is also contemplating this direction. Recently, it has signed an agreement with the BarLisa Association, a group of top experts in technology and patent fields, to support BarLisa's participation in the angel investment market. Additionally, efforts are being made to create angel investment as a new connection point so that executives nearing retirement from large corporations can naturally participate in the venture ecosystem. These movements do not merely signify an expansion of the angel investment market. They can serve as an important starting point for creating a more professional and healthy early-stage venture ecosystem.
Early entrepreneurs ultimately grow through people. And a good angel is not just an investor but also the most realistic senior figure in the market that an entrepreneur meets first, serving as a mentor. It would be beneficial if experts in each industry consider that their expertise and experience can become assets that help the next generation of innovators begin, rather than ending within their organizations. The government and policy authorities are also expected to now look beyond simple tax incentives and jointly consider guidelines, policies, and changes in social perception that allow private professional groups with expertise to participate more naturally in the angel investment market.
[MoneyToday startup media platform 'Unicorn Factory']
in FUTURE
