SW Venture up by private investment increase … 6000 within this year
Lim Song Yeob | starleaf@ | 2017-06-09 09:53:30
The number of Korean software (SW) venture companies increased 8.32% over the previous year. The increase in the number of venture companies that can innovate through technological power is the analysis of the increase in the number of venture companies into the SW-oriented society.
According to the Korea Venture Business Association (President, Ahn Geun-joon) on June 8, the number of Korean SW ventures grew by 8.32% from the previous year to 5588 as of the end of April. This is the second largest percentage of SW ventures after manufacturing ventures, accounting for 16.44% of the total number of venture companies in Korea. Especially, it is 2.5 times faster growth considering the fact that the growth rate of SW venture company was 3.39% compared to 2015. As a result, it is predicted that the number of SW ventures will exceed 6,000 for the first time since the statistics of venture business in 1998 this year.
The related industry is paying attention to the fact that these numbers are not venture-certified companies but startup companies. Korea Venture Business Association is the venture business subject to the survey and is a company certified by the Korean government under the Act on Special Measures for the Promotion of Venture Businesses. It has received a technology evaluation guarantee from the Technology Guarantee Fund or has received a technology evaluation from the Small and Medium Enterprise Promotion Corporation. Besides, it is confirmed that it is a venture company after receiving venture capital (VC) investment from VC Association. Representative of Policy Cooperation Department of Korea Venture Business Association stated, "SW venture companies are more stable when compared to general start-ups.”
This is the reason that the size of the SW venture ecosystem has more than doubled in a year. The amount of new investments put in venture companies in information and communication technology (ICT) service last year was KRW 406.2 billion according to the Korea Venture Capital Association. This amount is the largest in four years since 2013. By the first quarter of this year, the investment amount of ICT service venture enterprises was KRW 111.1 billion, 53.45% more than the same period last year (KRW 72.3 billion).
It is expected that the rapid growth of Korean venture companies with technological power will play a key role in leading the national economy in the transition period to the SW-oriented society in the fourth industrial revolution era.
Professor Yeom Heung-ryul of Soonchunhyang University mentioned, "Innovation is born in start-up rather than in existing companies, as shown in the case of good ideas being commercialized in start-up and M & A by large companies. This is a positive signal for the SW-centric transformation process."
Besides, the industry points out that it is necessary to mitigate unnecessary regulation of the government in order to continue the quantitative and qualitative growth of SW venture companies.
Cho Young-hoon, director of the industrial policy department of the Korea Software Industry Association, explained, "The government`s policy intervention should minimize the SW ecosystem only to the extent. It should be followed and leave the rest to the market." IT investment is not an expense but an investment opportunity in the private sector.”
By Lim Song Yeob starleaf@
[ copyright ⓒ The Digitaltimes ]
According to the Korea Venture Business Association (President, Ahn Geun-joon) on June 8, the number of Korean SW ventures grew by 8.32% from the previous year to 5588 as of the end of April. This is the second largest percentage of SW ventures after manufacturing ventures, accounting for 16.44% of the total number of venture companies in Korea. Especially, it is 2.5 times faster growth considering the fact that the growth rate of SW venture company was 3.39% compared to 2015. As a result, it is predicted that the number of SW ventures will exceed 6,000 for the first time since the statistics of venture business in 1998 this year.
The related industry is paying attention to the fact that these numbers are not venture-certified companies but startup companies. Korea Venture Business Association is the venture business subject to the survey and is a company certified by the Korean government under the Act on Special Measures for the Promotion of Venture Businesses. It has received a technology evaluation guarantee from the Technology Guarantee Fund or has received a technology evaluation from the Small and Medium Enterprise Promotion Corporation. Besides, it is confirmed that it is a venture company after receiving venture capital (VC) investment from VC Association. Representative of Policy Cooperation Department of Korea Venture Business Association stated, "SW venture companies are more stable when compared to general start-ups.”
This is the reason that the size of the SW venture ecosystem has more than doubled in a year. The amount of new investments put in venture companies in information and communication technology (ICT) service last year was KRW 406.2 billion according to the Korea Venture Capital Association. This amount is the largest in four years since 2013. By the first quarter of this year, the investment amount of ICT service venture enterprises was KRW 111.1 billion, 53.45% more than the same period last year (KRW 72.3 billion).
It is expected that the rapid growth of Korean venture companies with technological power will play a key role in leading the national economy in the transition period to the SW-oriented society in the fourth industrial revolution era.
Professor Yeom Heung-ryul of Soonchunhyang University mentioned, "Innovation is born in start-up rather than in existing companies, as shown in the case of good ideas being commercialized in start-up and M & A by large companies. This is a positive signal for the SW-centric transformation process."
Besides, the industry points out that it is necessary to mitigate unnecessary regulation of the government in order to continue the quantitative and qualitative growth of SW venture companies.
Cho Young-hoon, director of the industrial policy department of the Korea Software Industry Association, explained, "The government`s policy intervention should minimize the SW ecosystem only to the extent. It should be followed and leave the rest to the market." IT investment is not an expense but an investment opportunity in the private sector.”
By Lim Song Yeob starleaf@