Earlier this year The Korea Capital Market Institute estimated that the government measures there to support angel investors and start-up companies would initiate a subsequent 4.3 trillion won increase in venture investment over the next five years. And with angel investor data also rising, deal flow is naturally buoyant. But the impatient exit culture of this market could be setting up entrepreneurs and investors alike for failure.
South Korea’s Small and Medium Business Administration has reported that the number of angel investors in the country was at 619 in 2011 compared to 28,875 in 2000. As of March 31 this year, however, there were 28,731 start-ups in South Korea, the bulk (90%)of which were specialising in computer software development and manufacturing. Start-up companies are only expected to multiply now that the government has made available an unprecedented 3.31 trillion won ($2.97bn) for start-ups, especially those in the…
