Despite Singapore having a robust startup ecosystem, ranking 17th in the world according to Startup Genome’s latest report, geographic and demographic constraints mean that Singaporean entrepreneurs must quickly look to enter new markets in order to achieve scale.
In fact, in the current low growth macro-environment in which competition for market share is increasingly fierce, the ability to scale is synonymous with the ability to survive. It’s scale or die.
However, successfully internationalising a business, particularly a nascent one, is no small feat.
The APAC region is incredibly diverse and no two markets are the same. What works in one market may not be appropriate for the next. This poses a challenge for all Singaporean startups, how to sustainably scale into new markets quickly and effectively?
As a leading venture studio and startup accelerator in the region, Rainmaking has supported the international expansion of hundreds of startups across APAC.
As part of that process, the Rainmaking team have witnessed firsthand how challenging market entry can be, requiring careful navigation of regulatory, cultural and other in-market hurdles in order to unlock new opportunities.
Crucially, Rainmaking has found that the key to successful international expansion is to first validate demand in the market for a new product or service, before investing a significant amount of financial and human capital.
About Rainmaking Expand
Rainmaking Expand is a new generation of market entry programmes designed to address the challenges associated with international expansion. After many years of designing, operating and evolving accelerator programmes around the world, Rainmaking has established a framework that first helps startups assess their viability in new markets before helping them to deploy there.
Their latest programme, Rainmaking Expand: South Korea, supported by Enterprise Singapore (ESG), focuses on providing end-to-end support for Singaporean startups seeking to enter the South Korean market.
In contrast to the traditional accelerator programmes that focus on education, mentoring and pitch preparation, Rainmaking Expand offers customised, modular programme plans for each startup that are designed to maximise commercial outcomes.
The support on offer covers market validation, customer discovery, business development and the facilitation of relevant introductions in South Korea.
With customisation being the main focus, Rainmaking explores each company’s business model and expansion plans and identifies particular areas that require validation before attempting to execute a market entry plan.
Rainmaking also helps businesses explore regulatory, cultural and other in-market challenges that a startup is likely to face, making sure that plans and expertise are in place to deal with them.
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The programme is comprised of two tracks:
- Track one focuses on ramping up in preparation for expansion. During this phase, startups work with Rainmaking to validate in-market demand for their product or service and develop their expansion strategy and roadmap.
- Track two focuses on executing the go-to-market strategies that startups have created. During this phase, startups will engage in focussed business development conversations with potential customers and collaborators in South Korea and concentrate on securing new customers and pilot opportunities with commercial collaborators.
Why South Korea?
South Korea is a compelling market for Singaporean startups looking to expand within the APAC region for a number of reasons:
- Welcoming international startups: South Korea welcomes high potential startups through startup initiatives and by establishing Free Economic Zones (FEZs). This has opened up commercial pathways for expanding into South Korea whilst ecosystem players like Rainmaking help accelerate time to market.
- Major Trend & Tech Testbed Consumer: Trend sensitivity and strong purchasing power make South Korea an ideal market for global brands wanting to test and refine new products and technologies, giving rise to the idea that where the Korean wave goes, the rest of the world follows.
- Global innovation hub: South Korea has produced 17 unicorns and has topped the Bloomberg Innovation Index for seven of the nine years that it has been published. More to the point, South Korean conglomerates are enthusiastically working with startups in a variety of ways, including partnerships, equity investments and M&A.
- Strong government support: The government plays an active role in promoting and nurturing the local startup ecosystem and boasts some of the world’s most generous grant funding programmes for entrepreneurs. The K-Startup Grand Challenge, which invites and incentivises foreign entrepreneurs to set up shop in South Korea, is one such programme.
- Growing despite COVID-19: South Korea’s four per cent growth rate in 2021 is expected to remain robust through 2022 and 2023. Under the Korean New Deal, the government is investing US$133 billion to accelerate the transition towards a digital and green economy, creating a host of new opportunities for startups from around the world.
- Proximity to key Asian markets: Located in the centre of Northeast Asia, South Korea acts as a launchpad for accessing 2 billion tech-savvy potential customers – an ideal location to enter and expand for startups.
How to join the programme
The Rainmaking Expand: South Korea programme is currently accepting applications for the first cycle, and is already helping startups identify their needs for market entry while building a customised modular programme for them in order to succeed.
Interested startups can apply to the programme now via the Rainmaking Expand website in order to begin their market entry journey. Applications close April 3, 2022.
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