Korea Securities Depository Hosts '2022 Crowd Funding Star Contest'

[Asia Economy Reporter Minji Lee] The Daegu branch of the Korea Securities Depository announced on the 25th that, together with Daegu City and the Daegu Center for Creative Economy and Innovation, it held the ‘2022 CF (Crowd Funding) Star Contest’ to activate the use of securities-type crowdfunding by startups in the Daegu and Gyeongbuk regions and to support startups in raising funds and entering the capital market.

This project has been implemented since 2017 to support promising small and medium-sized ventures and startups in Daegu and Gyeongbuk in raising funds through securities-type crowdfunding and to strengthen their IR capabilities.

The Daegu branch of the Korea Securities Depository provides IR education and consulting, selects outstanding companies, supports the costs incurred until the selected companies start crowdfunding, and the Daegu Center for Creative Economy and Innovation conducted recruitment announcements through the Daegu Startup Hub (DASH).

Applications are open until May 19, and companies that pass the document screening will receive education on business model strengthening strategies, how to prepare IR presentation materials and speech methods, and funding strategies. Then, through IR presentations, five outstanding companies will be selected in June.

For the selected outstanding companies, up to 8 million KRW per company will be supported for online platform registration fees, including one-on-one consulting fees and funding post production costs. The registration period is until November 2023.

From 2017 to 2021, the Daegu branch of the Korea Securities Depository supported 17 companies in Daegu and Gyeongbuk to conduct securities-type crowdfunding, among which 8 companies successfully raised 550 million KRW in funding.

This year, support is being provided for securities-type crowdfunding for Agros, Vinest, Narae C&D, and SM Marketing Agent, which were selected as CF Star companies.

The Korea Securities Depository stated, “We will continue to support the growth of regional ventures and startups by strengthening their IR capabilities so that crowdfunding recruitment and follow-up investments such as venture capital investment can be achieved, enabling them to enter the capital market.”

This content was produced with the assistance of AI translation services.