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The connector code begins at 10:00 a.m. in just a few minutes, so please take your seats.

For the sake of the proceedings, please turn off your cell phones or switch to vibration mode.

Hello. I would like to thank all of you for participating in the Office of Intervention on Connecticord, sponsored by Open Audio Corporation, Korean Economy, and the Seoul Tourism Foundation.

I'm AI Announcer Code.

This year, the third episode of Connect 2 Code will be conducted through Silent Systems.

Contestants, please put on your headsets placed in the venue to participate in the event, and on the left-hand side of the stage, check out our real-time AI translation program. And at the conferences today we have an event called I Reviewant. Use the QR code you can see on your screen to go to the website and write a review after each announcement to receive a free coffee gift card at the event desk.

We will now begin the presentation of the first day of the 20242 Seat Shift.

The CEO of CNT Tech Incorporated, the best accelerator in the country for four consecutive years, is going to make an announcement.

Please give him a big round of applause.

Can you hear me? Yes.

Today,

I can't hear the microphone, but I guess you can now that you're wearing it. What I prepared for you today is an explanation on how to read an investor's mind. We need to know how investors think about investing in order to make it easier for investors to enter investment IRDs.

So that's what we're going to be talking about today.

So let's start with the big fours.

Why you? Why decide why?

These are the four things that usually make investors think. Huh? I'm going to share this thought process with you today, and there are some classic examples of this thought process. I'll introduce you to each of those examples.

First of all, to explain the exorator, the X-ray machine is often referred to in the media as Ms. A for short. VCAC of venture capital is compared to this. So

A lot of people only know that the exorator invests in small amounts now, but the reason it invests in small amounts is because it invests in early startups. When we make our first investment, the average value of the company is between two and ten billion. For example, if you think you're investing in a company with five employees, which is about three billion won, you can't invest a billion won in such a company. If you invest one billion won, you'll have 30 percent of the shares.

That's over 30 percent. That's why companies usually invest less than 300 million won, and if they invest less than 300 million won, because it's small money, they match it with a tip tax system. As some of you know, if you invest over 100 million won, the government will give you 500 to 700 million won in funding.

If you invest 300 million won and get 700 million won from Tibs, you'll get a billion won. That's how we invest a lot. So every year, in the last four years,

I make about 80 investments a year. I make about 80 investments, and the total cost of those 80 companies is about 12 to 15 billion. So I'm investing a small amount of money, but I'm trying to get the start-ups to pay for the initial development by matching as much as I can. This year, we usually have a ticket for each Tibbs operator. I don't know how many tips I can use. I have a ticket of tips.

Uh-huh, we got 40 Tibs tickets this year. So I think I can keep up with the highest number of tips by matching them.

Uh, usually, when investors ask the start-ups questions, they get grouped into four large questions, but I'll explain them to you one by one and share them with you as examples. Huh?

Why should I invest in you? The concept of 2YU is why should I invest in you? So I have to explain to a market what I started with with my experience. I have to get investments because I'm good at what I do. I have to explain my experience value in the marketplace.

Usually a problem, a definition is something that your experience level can appreciate, and the deeper this experience goes, the deeper the problem definition, the problem-solving way of doing things, the better Insight is going to be.

Well, presentations that start with the definition of a problem, investors can quickly pick up on the idea of a distributor's experience value. So this question, the definition, the experience value, you can explain to them why they should invest in you.

The higher the quality you get, the higher your insights when you're presenting the solution. Well, some of the companies that I've invested in, some of the good cases that I've invested in, let me put it this way, one of the companies that I've invested in is the company that does the 3D Wide Camera. CEO Park Kiyoung did a research on 3D Health Camera for about ten years, and his experience on 3D Health Camera was very

It had depth, and it had insights that could solve a lot of future problems. For example, robots are coming into the market now. Robots and robots. You saw Boston Dynamics, the company Hyundai acquired. But if you use a Tudi camera, you can't see a person's face. You can only see up to a hundred. You have to see a woman's face to know if she's guilty or not. That's why these cameras and wide-angle cameras were brought in. It's because of his ten years of experience.

I can explain that he was able to sort out his future problems ahead of time. It's a company called Esjima. This company runs a platform for developing an auto technology related to fishing. By the way, where's Mr. Lee?

My dad used to fish all his life. He hated fishing. So when he couldn't catch fish, he'd get annoyed and get angry. If you go there, you can catch fish. I've created a fishing point prediction app. So I've combined prediction of the weather conditions of the day, ocean currents, and so on, and now I'm predicting points, and the prediction rate is really good. He's an experienced fisherman who majored in computer science.

It's a success story in that it was combined with insight that you could present the solution to.

In the third case, Mr. Hong Jong-ju of Newtrinder Street majored in business management at Seoul National University.

From the time he attended the real school,

I was very interested in food waste disposal. How can I do that in an eco-friendly way? Well, every time I throw away a lot of food waste, it breaks my heart. How should I deal with it? When I was in college, I was looking up a thesis about food waste written by a professor at the University of Chicago called a slave on his back. It can eat food waste.

You can use dried powder and fish farm food like this. That's why I wrote this thesis. We tested a few of them in our lab and it went well. We followed the experiment in the lab and created a large space for food waste disposal using silkworms of 500 pyeong in Changwon-gi. Actually, Nutri Industries was the first company that gave me a hard time when I was doing due diligence.

I've been watching them eat food for about two hours, and the smell is so strong. But he set it all up from the beginning and made it available to the public, and when he emailed a professor at Chicago University and found out that it was available, the professor at Chicago University came to Korea shocked. I was so moved by what I saw, so I decided to share my founder's passion and know-how with the whole world, so I brought him to the Singapore government. There's a technical provider in Singapore right now for some kind of eco-friendly food waste disposal.

So these experience points that I acquire with my own body, I study them, and my own research accumulates and goes over a certain level. That way, I can finally prove why I should do this business.

If you don't give up until the end and continue to gain experience, you will eventually find the right solution. Hmm.

All right. YU can be explained easily, but when I invest, I think about why I should invest here. The concept can be more difficult.

Uh, we have invested in about 400 companies over the years in 16 different categories. We've done that, and when we look back at what we've invested in,

This might be a term you all know, but MVP is Minimum Beerball Product. So there's a PMF, a product market fee, and then there's a CPF, a custom product feat, and then there's these concepts. and concepts and, you know, MVPs don't really clean up a market, they just experiment in a really small market. And at the end of that experiment, they get an investment in their product. And that investment is what we call seed investment. But these days, it's a seed investment.

He didn't get baby teeth, but he got a start-up package. There are some cases where through programs like the Youth Entrepreneurial School, you skip the MVP acquisition investments, and you get a free-a-fund right away, and it's now at that, uh, product market level. So at the product market level,

I'm actually organizing a particular market and measuring my market share for the first time in the market that I've organised. It's just a measurement to make sure that my product is checking to make sure that I'm doing something that's fit for the market. At this stage of PMF, many investments in venture capital are usually made at this stage. That's why

I wanted to know if there was a PF stage where I first defined the market, or if there was a CPF stage where I was preparing to expand to the next level. I need to make sure that I'm at the point where I can define my Customer customers and I need to make an IR data.

Well, the people of Cacao or Delivery usually go through these two processes. So for Kakao, if you remember the MVP model, it just went back and forth in yellow text messages without any functionality. The people of delivery didn't place an order at first, but return the phone.

As expected, the Food Eggridge Gate is a place where people can gather such menus and restaurants and say, So when I tested that as an MVP, when that test came out, for the first time, we were both growing to the point where we were testing the availability of our services for this particular customer's marketplace.

To explain why now, even the MVP level needs to do Propov Concept A POC, and in the next level, the PMF level, the cotton level that's usually divided by our TamSam cotton level, or the Ram level below, you need to test the market compatibility of this product thoroughly, and then look at the concept of market share and move to the CPF level, the postomer product P level to expand the market.

The third one, uh, YT size, why should I invest in this idea? It's connected to the Y and D. It's connected to the Y and now and it may not be necessary in the seed. It's not necessary in the seed market, but it's a very important concept for Why Now and A Seafry Investment, or Series A Investment.

Uh, yo matrix is called the BCG Matrix Boston Consulting Group Matrix. Uh-huh. As you can see here, the X-axis, to start with, is market share. The relative market share load is market growth. Market growth, if our mid-country cow and I say that our competitor and I each have 30% of the market share, it's a number one. Our competitor has 30%.

Fifteen percent is here. It's very low. If it's upside down, it's not going to be high enough, so it's going to be low enough. So 1234 is where starter organizations generally start their business. So starting a business is that mono quadrant. Start. So everybody starts off with a big market growth zone. You have a lot of growth in the marketplace, but you have a lot less market share relative to when you start your business. So...

So once you start your business,

They're making an effort to be stars. They're making an effort to increase market share. But they're not going to be stars. They're going to be stars, and then all of a sudden the market decreases. When I say I'm a dog, I don't mean I'm a dog. I mean I'm a doctor at the Boston Consulting Group. I'm a dog. So I'm actually a what? If I were to explain a similar case recently, the Metaverse was a keyword that many people

There were a lot of companies involved, but the market growth suddenly dropped. The concept itself is dying, and we've moved on to the concept of digital twin, BtoB. So companies that prepare the metaverse in the form of Bitucy, their market growth suddenly plummets. As for blockchain, it's not a problem for companies who switch to SARS based on private blockchain, but many people who tried to use the Aisho model have lost their market.

So you're going to have some experiences that you're going to come back to, and I'm going to share some of the experiences that I've used as a tool to bring in investments.

I'm in my fourth year, and I don't have anything. I have a third business model going on right now where I'm gaining experience and, uh, becoming a star. So that's a good way to sell it. There are companies that have Series A or Series B experience points of actual stars, but the services and products that you create will never remain stars.

CNC Tech and I also had a 21-year-old company and a number of examples that made us stars. In the first order we made, the CEO's number reached the stars, the website, the mobile order service, and Kakao's order all reached the stars, but the market growth will eventually decrease no matter what the market is. At a time like this when technology trends are changing fast, market growth is inevitable. Get out.

When the growth rate goes down, it's not because the business isn't doing well, but because the market is growing, the sales go down, but the total earnings go up. Because the market share has dropped, and the market growth has dropped. So the first-rank company naturally gets the market share by decreasing the size of the market. As the market gets smaller, the top three books start to be culled. So the top three companies usually go through the process.

the competition becomes less competitive, and in the case of BtoB, the client's requirements go down, and the customer's expectations go down, and the actual profit rates go up. So it's a cash cow. We have a lot of technology related to food technology, but the market has dropped. When we made the most sales, we made two billion won. We made two billion won.

Despite the decline in the market, it generates over three billion in profits. So it's not a bad thing to become a cash cow. However,

You have to make an effort to build the next star while your business is the case cow. If you don't build the next star because you have the cash cow, the business is going to stagnate or fall back. We currently have a cash cow position on a food tech platform, and the business that we're working hard to promote as a star is this startup's investment and childcare business. I made this part a star. Recently,

We have?

This was a concern I had in 2000,018 In 2,018 we were worried that our ordering platforms had become stagnant in Korea, but we were still in the cash business, and one of the three things we had to do was to make our business successful. Usually, when companies are at a certain growth level, when they start a new business, you hear that your start-ups are one in ten success stories. But even large corporations and successful companies don't have a high success rate when they do new businesses.

It's less than 50%. Usually, we think that we need to hit one of the three. Baseball players also think that batters are good batters. So we think CEOs need to hit when they need to. If that doesn't work, go to the CEO. At the time, I told my employees that one of the three businesses had to be a success, and that was Kakao, distributing orders, and the other was going overseas. Actually, the excelator is

I'll be honest with you. I was the third candidate. But Kakao, we prepared a service for you to order, and it was our service. We prepared it with 1.5% commission, and we were about to open it all up, but an article suddenly came out. A large corporation's infringement of commercial rights came out. It's a service we actually do, and since it's a Kakao platform, Kakao couldn't advertise it. That's why people didn't know about the Kakao Order map.

We built it with a huge amount of development and development money, but actually, our 1.5% commission per year didn't generate more than a billion in sales. So, uh, it's not that hard to become a star back then. When it's really hard to be a star, you can jump right into the cache cow strategy. That's where we're going to

Instead of going through stars, we made about 1.3 billion won in low revenue and made about 70 to 800 billion won in profit.

But in the end, he didn't become a star. The second business, which is us, is a company called YAMI in the US. It's a huge franchise group. K-E-P-S-I-N-E-S-I-Taco-Berry, and Cape is actually the biggest. But, uh, we launched in seven countries simultaneously. We became the first software vandership in Asia from Yan's headquarters in the US. I received three kiosk and mobile order table orders, and I received about 10,000 of them.

Is that what we're guessing? So what's our model? We're a subscription service model. About 300,000 won per kiosk and mobile order set. But since it's estimated to be 10,000, and we receive about three billion won a month, I actually had high expectations that even though Kakao services didn't become stars, this international launch would. It had good results. But in 2019, we made an OEM for kiosk and sent it overseas.

But in March 2020, the pandemic broke out. We couldn't get out. We couldn't get out, so we were forced to do it by outside forces.

into the tools. We couldn't get out, and it was getting to the point where it was actually costing us a lot of money to do a lot of our installation preparation. So the one of the three that was left was the excelator. Because of COVID-19, we had to withdraw many employees from abroad, so we retrained many employees on how to invest in X-ray machines and humiliate them. There was no way to make him a star in 2020.

She was so immersed that she became a star in 2020. That's why

We're going public with the X-rays as our business model, so what I'm telling you is that we need to manage the series AUN. Anyway, I've got to keep this new business, uh, a star, and, uh, I don't know,

Are you the CEO of Samaha? For that, I need to be good at organizational management, good at reading future market trends, and look at myself to see if I'm doing a good job.

Well, what I just told you is about companies that grew after the series AP, and actually, the starting point for start-ups is to develop MVPs, apply them to the market, and experience success and failure over and over again in order to succeed. And even if you go to a star, it's not the end of the road. There's a point where you're at a star, and then it becomes cash cow, and your sales decrease, and you have to keep trying to build a star service.

Uh, not that it's a bad thing that it's cached, but there's a tendency to ignore services that are cached. We need to make sure that we don't ignore the cache cow services, and we need to make sure that we manage them systematically in order to create another star or to create an actual consistent cache cow.

Well, being a tool doesn't necessarily mean it's a bad thing. There's definitely some experience value there. So if you're creating a tool over and over and over again with a real-life experience, that's really wrong and you need to permeate that experience into your organization.

So this idea is actually, you know, the why now why this idea is a little bit connected. is that at this point, you really have to convince them that this is an idea that they should invest in.

Here's the last question. Why does YB want to invest in me of all people? That's the question. That's the worst answer. The investor won't invest. and say, hey, that's why I'm here, it's not going to happen. You're not going to do that. You're going to have to think about why you're going to get it here. You're going to have to think about it. I usually use this to give a keyword, smart.

That's the concept. Smart money. If I get that money, I can increase my network, my sales, my tech support, my league service, and it's called smart money. Generally.

Why did you accept Shin Tech's investment from companies that received funding from Sentech? If you ask them that, the first one is a tip. It's a good match. We received the most tips tickets in Korea this year, and we've been doing this for the past two years, so as I said earlier, it's a meaningful investment if the amount is small and the tip is matched. So that's the first time and the second time.

In this case, food tech companies are able to enter the shared Xian Tech market easily. That's why we invest the most in food tech. Some investors prefer to network with venture capital. That's true too. We're constantly exchanging information with over 100 venture capital companies, which gives us a huge advantage in our follow-up investments. And that's a real reason. You can get technical support.

We still have about 50 people in our software development team, and we've been developing for 21 years, so we have a lot of ten-year-old developers. When we meet the CEOs of start-ups, So you have three years of experience in development. In our opinion, when a junior developer designs the database and designs a child's experience, there are cases where they open the service and they come in beta and die. Most databases are designed Are you serious?

Sometimes it's really, really bad, and we'll do the design with it, and then we'll receive that technology support. So in conclusion,

if this investor's money is turned away from me, it's not just about money. So, when they ask me why I want to take their money,

That's the kind of help you want. That's the kind of help you want.

Pocket is our first Xtan case.

After we got our investment and received our follow-up investments, we received about ten billion won. At that time, we had about one billion won in sales, but out of that one billion won, we got 100 percent of all of our investments. In our franchise customers, we created a sales platform called Eat Today, and then we got investments and then we moved on to media commerce. We really took advantage of that smart money.

As I was saying, we were in a bit of a pickle after this article was published, but after that article was published, we received about 1.5 times as many investment inquiries. That's how many startups are thinking about smart money yesterday.

So you need to think about which investor's money can be your smart money and have the wisdom to attract smart money. Huh?

So that's it for this module. We've got about eight seconds left for this gentleman, so if anybody has any questions, we'll take a few and wrap it up. Do you have any questions?

Questions.

If you don't have one, just a while ago, my manager asked me this. What's your investment environment like? I get a lot of questions like that. But right now, the investment environment isn't that great.

Well, because, you know, when you're running a business, you need to look at the external parameters. You're memorizing them, you're memorizing COVID, but the external COVID parameters are still affecting you. During COVID-19, the whole world printed a lot of money to overcome COVID-19. We actually consumed a lot of money in retaliation.

But one of the reasons for raising prices is the increase in raw materials, and there are a lot of them. We're at war on two fronts right now. Due to various situations between Israel and Iran and us, it's not easy to lower the interest rates. But if interest rates don't come down, the growth stocks in the stock market, and the growth stocks you know, they're all real stocks. They're all major bio stocks. So even though they're not profiting yet,

Companies are all growth stocks, but if growth stocks continue to plummet to the bottom, that's at least the influence of the investment capital that Series B Investment Attraction Venture Capital uses. If it does affect you, it does affect the actual extra investments.

Well, to be honest, until last year, I kept telling people that X-rayers don't care about investments, but this year, the exorator's investments have decreased. It's dominoes. So at a time like this,

I don't think we should use the number of members or other platforms to explain how we can achieve BEP, but we should use BTOB's stable profit model to make leather investments. All right, so that's it for this module. Thank you.

We should always think about the four Y's. Let's give Mr. Telephone Sung another round of applause.

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