Press

As a global startup boom unfolds, various funds and talents are flowing into the startup sector. Venture capitalists (VCs) and accelerator (AC) officials who identify promising startups and decide whether to invest are launching a search for hidden 'promising startups.' Meanwhile, it has been revealed that overseas VCs are using tools such as the 'Myers-Briggs Type Indicator (MBTI)' to assess the characteristics of entrepreneurs. Last month, European startup media Sifted reported, "Many VCs rely on personality tests like the Myers-Briggs indicator, the kind experienced in workplace settings, to decide whether to invest," and pointed out that "this can lead to an error of ultimately following the 'fixed mindset' they are trying to filter out." The implication is that VCs' criteria for evaluating founders and founding teams are inaccurate and rigid, requiring a more personalized approach. The domestic venture investment industry also agrees that information about entrepreneurs is a very important factor. For sustained company growth, beyond indicators such as development capabilities and market viability, qualitative factors like organizational culture and leadership of the CEO must be considered. Just as companies conduct personality tests when hiring talent, some venture investment firms are utilizing personality and tendency tests. Underdogs, a startup-focused education company, developed its own 'work tendency test.' Underdogs is also a startup content production company and accelerator. Last year, FuturePlay acquired HR platform Tanigement. Tanigement is a company that developed the 'Strengths Finder,' a type of career development tool that helps people recognize their own tendencies and develop them as strengths. A VC industry official said, "In the past, there was a tendency to judge (entrepreneurs) by educational background and connections, but recently there's an atmosphere of understanding personality and tendencies based on reputation," adding, "since it's so difficult to judge people, it seems foreign investors are even looking at CEO MBTI." As the domestic and foreign venture investment market grows rapidly, the industry predicts that solutions for evaluating entrepreneurs and their companies will also advance. According to the Korea Venture Capital Association, the outstanding balance of venture market investments is approximately 14.5 trillion won, the largest on record. Annual new investment amounts exceeded 2 trillion won for the first time in 2015, reached 3.4 trillion won in 2018, and entered the 4 trillion won range in 2020. The new investment scale for 2021 is expected to be the largest on record. Already in the third quarter of last year, the cumulative new investment scale surpassed 5 trillion won for the first time in history.