Startup ministry taps 60 future unicorns for $240,000 assistance

The Ministry of SMEs and Startups announced Wednesday it has selected 60 promising startups to which it will provide financial assistance and expertise for the next 12 months. 

The startup ministry’s “Baby Unicorn Development Project” is aimed at nurturing companies with less than 100 billion won ($80 million) in valuation; as well as innovative business models and growth potential. 

The ministry previously selected 40 future unicorns in 2020 and 60 last year – a total of 100 over the last two years. 

The chosen startups on average saw a 91.4% increase in employment and 149.6% jump in revenue, according to government-compiled data.

More than 280 small- and mid-sized enterprises applied to be included in this year’s roster; and one out of 4.7 applicants was chosen. 

By industry, 27 or 45% of the selected startups were platform operators using data, networks, and artificial intelligence. Sixteen companies were either in biotech or healthcare. 

The South Korean government plans to provide up to 300 million won ($240,000) to the selected companies to help them explore new markets. Seoul will offer additional liquidity of up to 5 billion won for special warranties, policy funds of up to 10 billion won and special treatment when participating in the ministry’s R&D projects.

Nature Mobility Co., which received the highest marks during this round of evaluations, is the Jeju Island-based operator of a price comparison rental car platform known as Zzimcar. 

Zzimcar is known for collaborating with major portal sites to offer comprehensive services from flights to taxis. 

Write to Joo-Wan Kim at kjwan@hankyung.com
Jee Abbey Lee edited this article.