Eight out of 10 Korean startup founders see contraction in funding

[Source : Startup Alliance]

Startup Alliance, South Korea’s non-profit organization to invigorate the startup ecosystem, found that more than half of domestic startup owners modified their funding plans amid weak investor sentiment. According to its survey targeting 200 startup owners and 250 employees, 82 percent of them felt the investment market for startups contracted this year versus a year ago. They cited the economic slowdown, interest rate hikes, cash crunch, and reduced state aids as challenges to attracting funds. About 40 percent of the respondents pictured gloomy outlook on startup investment next year.