SG Seoul: Bedy Yang (500 Startups) On Avoiding Potential Pitfalls When Raising Money

Startup Grind Seoul hosted its ninth event at the newly opened Google Campus Seoul. The guest speaker that night was Ms. Bedy Yang, Managing Partner at 500 Startups. She was able to give us specific advice that related to 500 Startups and also general advice for entrepreneurs.
Before going into 500 Startups-specific advice, here is a brief introduction of the company. 500 Startups is a global company that not only invests in companies but creates a platform for startups to excel. As a seed fund and accelerator, they have invested in over 1,000 companies in 50 countries. As a global community and ecosystem, they have a founder network of 2,500 entrepreneurs and expert mentor network of 250.
On plans on entering Korea, she mentioned that 15M has been allotted for investing in the Korean market. They have already invested in 8 companies in Korea, but that number will soon grow. Ultimately, she said half-jokingly, that their goal is to conquer the world!
An important piece of information for those interested in being invested by 500 Startups was that even for early stage startups, they do care about monetization. She said that they prefer companies that think from early on how to make money. Even if the founders do not see it at the moment, they may be able to.

Here is some general advice for entrepreneurs.

On entering an emerging market:
We live in a hyper-connected country, Korea. A common mistake when entering an emerging market is that we will assume that the grounds are the same and that it will work just as well in that market. The key is customer development, really understanding what the user is looking for. For example, when entering India, you have to realize that broadband is expensive and that data is luxury. Images will not load as fast as it would in Korea, so you have to work around that.

On potential pitfalls when raising funds:
1. Team dynamic must be aligned. The VC will talk to multiple team members, even those who are not at the pitch. They must realize the same objective and direction. Even at an early stage, the key factor that will make or break the company will be the team more than the idea or that one individual.
2. Do your homework and find the right fit. This seems to be the recurring theme every session. There are many investors out there and they are all looking for different things. If you do not do enough research in who your investor is, you will raise money with the wrong investor. For example, you may want to grow your company at a fast pace but your investor may be conservative.
3. Be prepared for Q&A. Know the answers to potential questions. It will be much more convincing if you have already thought through the different scenarios and have a specific answer.

Thank you again, Ms. Bedy Yang for your time and wisdom during your stay in Korea. Thank you to our sponsors (The Asan Nanum Foundation, SparkLabs, Samsung OIC, Yuyu Pharma) and to our partners (Whatap, MangoPlate and Limotaxi)!
Our next event will be back at our usual location, Maru180. Our next guest speaker will be Mr. Bongjin Kim, CEO and Co-Founder of Woowa Brothers, the company behind Baedal Minjok. Please sign up quickly!