In the Post-Corona Era, Promising Startup Sectors Are Distinct

by Kim Heeyun

Published 28 Jun.2020 19:58(KST)

Due to COVID-19, the Spread of Contactless Culture Highlights Online Shopping and Remote Work Solutions

Remote work is gradually becoming a common work style due to the spread of COVID-19. Photo by Getty Images

[Asia Economy Reporter Kim Heeyoon] Changes are being detected in the venture industry due to the impact of the novel coronavirus infection (COVID-19). Non-face-to-face services and remote work solutions preparing for the post-COVID era are gaining attention through venture capital (VC) investment sectors.

According to the industry on the 28th, remote work and learning, bio, and online shopping have emerged as notable industrial sectors after COVID-19.

Earlier, on the 22nd, the Korea Venture Capital Association announced that the number of domestic companies attracting new investments in the first quarter of this year was 385, with a total scale of 846.3 billion KRW, a 4% decrease compared to the same period last year (418 companies, 778.9 billion KRW). Although investment slightly decreased, startups in non-face-to-face services and remote work solutions are gaining more attention.

Backpacker, which operates the online handmade market ‘Idus,’ attracted a total investment of 30 billion KRW from Mirae Asset Venture Investment, Altos Ventures, and others on the 8th. Idus enjoyed a boom due to the increase in people staying at home caused by COVID-19, achieving 10 million cumulative downloads, 4 million monthly active users (MAU), and an average monthly transaction amount of 14.9 billion KRW.

As many companies introduced remote work due to COVID-19, startups providing remote work solutions are also showing growth in corporate value.

Monday.com, an Israeli enterprise collaboration software startup, saw its corporate value grow to 2.7 billion USD (approximately 3.26 trillion KRW) by launching new solutions that improve work efficiency as remote work spread due to COVID-19. Its ‘Remote Work’ program, which addresses managers’ concerns about monitoring whether employees working remotely are performing properly, offers a service that allows a comprehensive view of team members’ working hours, locations, and individual work progress, receiving positive responses.

Monday.com, which recorded sales of 120 million USD last year, already achieved last year’s sales in March this year and is expected to easily surpass this year’s target of 250 million USD.

Kim Beomsoo, Global VC Partner at Semat Translink Investment, diagnosed at a startup ecosystem conference on the 25th that regarding the rise of such non-face-to-face remote work, “Assuming all employees work remotely in the future, there will be business and investment opportunities in solutions for maintaining high productivity and creating suitable environments.”