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Today, we will take a detailed look at Seed TIPS, a relatively recent addition to the family of TIPS programs.

Seed TIPS is a startup acceleration program designed to foster pre-startup teams to the stage of attracting seed-level investment by leveraging private-sector capabilities. The program is organized and operated by the Ministry of SMEs and Startups, the Korea Institute of Startup and Entrepreneurship Development (KISED), and the Korea Early Stage Investors Association (KESIA).

Similar to the standard TIPS program, Seed TIPS is led and operated by private accelerators. Currently, there are seven operating partners, as listed below:

• Sopoong Ventures

• Antler Korea

• NSL Partners

• Y&Archer

• InfoBank

• Tap Angels Partners

• Primer

Program Overview

• Eligibility: Pre-startup teams or early-stage startups with no prior investment history.

• Benefits: Supporting commercialization funding of up to 50 million KRW per team for a duration of 5 to 7 months, which can be utilized for prototype production, marketing, and related activities.

• (As of the second half of 2023) Approximately 56 pre-startup teams and early-stage startup companies.

• Recruiting conducted through three consecutive phases.

Eligibility Requirements

• Seed TIPS is an incubator program that welcomes both pre-startup teams and early-stage startup companies. As the criteria differ, please carefully review the official announcement guidelines.

• Pre-Startup Teams

  • According to Article 2, Subparagraph 4 of the Support for Small and Medium Enterprise Startups Act, teams of two or more individuals (including the representative) without an active business registration as of the announcement date.

  • The team must have no prior history of investment commitments or secured investment up to the date of the recruitment announcement.

  • Regardless of investment status, pre-startup teams are required to establish a corporate legal entity during the agreement term.

  • Applicants who have closed a business within three years prior to the announcement date are eligible only if they plan to launch a business featuring products or services in a different industry (both main and sub-industries) from the closed business.

  • If launching a business in the same industry as the closed business, application is permitted only if more than three years have passed since closure (two years for closures due to insolvency or bankruptcy).

  • To verify eligibility regarding same-industry re-entry, submission of records such as overall business registration history and proof of business closure may be requested (eligible candidates will receive separate notifications).

• Early-Stage Startups

  • According to Article 2, Subparagraphs 2, 3, and 10 of the Support for Small and Medium Enterprise Startups Act, startups with less than three years of business operations and no history of secured investments or investment commitments as of the recruitment deadline.

  • This includes investments made via proprietary accounts of accelerators or VCs (venture capitals, LLCs, etc.), as well as those through private or venture investment associations. Direct angel investment by private individuals is excluded.

Obligations and Roles

• Selected participants must adhere to all terms in the Integrated Guide for Startup Commercialization Support Programs, the Detailed Management Standards for Private-Sector-Led Pre-Startup Support Programs, and the official agreement, exerting their best efforts to complete the project successfully.

• To achieve the milestones described in the business plan, selected teams must execute their projects diligently and respond proactively to document submissions, progress audits, and evaluations requested by KISED and the operating agency.

• Selected participants agree to cooperate fully with follow-up tracking and management requests for five years starting from the expiration date of the agreement.

• Selected pre-startup teams and individual business owners must complete corporate registration in accordance with the Support for Small and Medium Enterprise Startups Act, aligned with their business sectors, prior to the end date of the agreement.

• When establishing a legal corporate entity, pre-startup teams must utilize the Startbiz online corporate establishment system (www.startbiz.go.kr) in principle.

• Selected participants must deposit matching corporate funds into the designated account within the timeframe specified by KISED. Any in-kind contributions must be supplemented with corresponding evidentiary documentation submitted to the operating agency.

• For corporate startups, the legal entity holds responsibility for business operations and budget management. In the event of budget recovery due to improper use (misappropriation, embezzlement, or fraud), the representative (the selected applicant) bears sole liability. Legal measures such as performance restrictions and debt collection may be pursued in accordance with governing policies.

• Selected participants must maintain the startup company for at least one year following the expiration date of the agreement, except in inevitable circumstances such as the death of the representative.

Evaluation and Selection

• Process Sequence

  • Participation in the Accelerator Program → Recommendation of the candidate startup to the organizer by the accelerator → Selection evaluation of the participating startups → Final Selection

• Evaluation Process Overview

• As with the standard TIPS program, the operating partner's representative delivers a pitch on behalf of the recommended company. Afterward, pre-startup teams and early-stage startups will present their business cases directly during an in-person evaluation phase.

Today, we explored the details of the Seed TIPS program. Since it is a relatively new incubator program, it may seem unfamiliar, but designing a strategic approach alongside an experienced operating partner will undoubtedly lead to positive results. Furthermore, selection for Seed TIPS grants additional points when applying for the main TIPS program later on, offering a major accelerate for your company's growth.

We hope this information helps you navigate the Seed TIPS support program, and we look forward to bringing you more valuable content in our upcoming posts.

Thank you.