It has been confirmed that the Korea Angel Investment Association and the Korea Venture Capital Association (hereinafter referred to as VC association) have been selected as the representative organizations for the 'TIPS' program, a prominent technology startup support initiative by the Ministry of SMEs and Startups.
Launched in 2013, TIPS had previously been managed solely by the Angel Investment Association without specific procedures, but now that the VC association has joined as an additional organizing body, a competitive system is expected to formally commence.
Recently, the Angel Investment Association appointed Vice Chairman Jo Min-sik of Bespin Global, while the VC association announced that Kim Hak-kyun of Quantum Ventures Korea would respectively take on the leadership role.
On the 5th, looking at the industry as a whole, the Ministry of SMEs and Startups notified the Angel Investment Association and VC association of their final selection after a recent re-selection contest for the TIPS organizing institutions.
TIPS, introduced to support innovative startups, is a program in which private investment firms selected by TIPS operators are provided with government support for technology development (R&D) and commercialization funding.
As of now, over 3,200 startups have been selected for TIPS, attracting follow-up investments totaling 15 trillion won and creating over 22,500 new jobs.
The two associations are expected to finalize operational directions, quantities, and budget-related practical coordination this month, and begin the selection process for corporations alongside TIPS operators in April.
The organizing bodies are set to manage the budget support cycle for TIPS corporations (4+2 years) for a maximum of six years starting in 2025. A representative from the Ministry of SMEs and Startups noted, 'The plan will be to operate for four years, then extend it for two years after an interim evaluation.'
As the TIPS budget and the number of supported corporations have increased, it is expected that allocations will be distributed. According to the Ministry of SMEs and Startups, the number of corporations supported by TIPS, which was just 15 in the first year of the TIPS initiative, has surged to 900 in 2024 (including TIPS and deep tech TIPS), a 60-fold increase.
With the increase in the control towers for TIPS to two locations, the operational capabilities of each association are expected to be put to the test. The organizing bodies for TIPS not only select and manage the TIPS operators but also evaluate the recommended startups and oversee the final selection process.
An industry official said, 'The two organizations will not only run common support programs but also compete by enhancing the follow-up investment success of TIPS operators through their specialized methods.'
This year, the number of corporations supported by the Ministry of SMEs and Startups is expected to drop to 700, 200 fewer than last year. Despite the addition of new global TIPS categories, it is interpreted that the overall budget has decreased because some startups that did not receive support last year due to government cuts in the research and development (R&D) budget are receiving amounts ranging from 50 million won to 200 million won from January to February this year.
A representative from a TIPS operator remarked, 'The criteria for determining which organizing body to apply through still seem unclear,' and added, 'As the selection process for startups in 2025 is set to begin in earnest, it is crucial to establish clear standards quickly to avoid inefficiencies.'