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Today, let's take a closer look at Seoul-type TIPS!
The Seoul Metropolitan Government and the Seoul Business Agency (SBA) have signed agreements with two private operators for the "Seoul-type Private Investment-Linked Technology Commercialization Support Program," introduced in 2023, to launch a new program supporting startups. This program is known as "Seoul-type TIPS."
1. About Seoul-type TIPS
Seoul-type TIPS is modeled after the Tech Incubator Program for Startups (TIPS) run by the Ministry of SMEs and Startups (MSS). TIPS operates by having private operators identify and invest in promising startups, while the MSS provides funding for research and development (R&D). Building on this successful model, the Seoul Metropolitan Government introduced Seoul-type TIPS to support the growth of the local startup ecosystem.
2. Operators and Support Details
The private investment firms selected as the inaugural operators for Seoul-type TIPS are ES Investor and Aeon Investment. These firms will serve as operators for three years, during which they can recommend and invest in startups. The final selected startups will receive a total of 400 million KRW in commercialization funding over two years.
ES Investor has formed a consortium with four partner organizations to provide close support to companies. They currently manage funds totaling 122 billion KRW, focusing primarily on early-stage startup funds.
Aeon Investment has formed a consortium with Hanlim Pharm, a mid-sized pharmaceutical company, with the goal of identifying and nurturing promising startups in the bio, medical, and healthcare sectors. Aeon Investment manages five funds totaling approximately 40 billion KRW.
3. Key Characteristics
Seoul-type TIPS selects supported companies twice a year through recommendations from the operators. Seoul-based companies that secure an investment of 100 million KRW or more from an operator are eligible for recommendation. While the operating method closely resembles the original TIPS, the program is not yet widely known. For companies that have not yet applied for national TIPS, applying for Seoul-type TIPS first can be an excellent stepping stone.
Since Seoul-type TIPS is a relatively new incentive, awareness remains low, but it offers an exceptional opportunity for startups. Seoul-type TIPS provides fresh challenges and funding opportunities for growing businesses, and is expected to further develop and sustain Seoul's startup ecosystem. Startup founders and technological innovators are highly encouraged to monitor and apply for this program. We look forward to its future success.