Korean venture capital firm Marvelstone has announced plans for 10K, its affiliated accelerator-incubator program for startups. 10K says it aims to accelerate 100 startups in each of 100 planned centers across Asia – a total of 10,000 incubated ideas, hence the name.
The accelerator claims it will do this by combining the models of Wework, a US chain of co-working spaces, and American accelerator Y Combinator (Disclosure: Both Marvelstone and Y Combinator are investors in Tech in Asia. Check out our ethics page for details).
See: This foreign VC just snuck into Indonesia and is setting up an accelerator
10K will start with the more modest (and manageable!) goal of accelerating 10 startups in 2015. By 2017, it wants to have 50 centers, averaging 15 startups a year per center according to Joe Cho, founder of 10K and chairman of Marvelstone. Joe estimates it will need about US$100 to 200 million to have the 100 centers it wants. 10K has so far raised US$3 million, coming from Marvelstone’s partners. Joe says 10K doesn’t need to raise anymore this year. Ultimately, the 10,000 startups target will be achieved within seven years, the company forecasts.
For each of the bi-annual three-month programs it will run, the accelerator plans to invest between US$25,000 and US$200,000 in each startup, for an equity ranging between 5 and 15 percent. It’s flexible in terms of stage and vertical when it comes to the startups that will be chosen, although Joe mentions that each center will specialize in a particular field. For example, for 10K Singapore, fintech will be the point of focus. For Korea, it will be online-to-offline (O2O).
Attracting startups and partners
10K plans to use existing co-working spaces as accelerator centers. This will involve acquiring some spaces as well as partnering with others. At the same time, 10K says it will partner with several parties to provide additional expertise, investment, and facilities. Partners at the moment include Singapore-based VC Life.Sreda, accelerator JFDI, and Korean accelerator program Accelerate Korea.
The accelerator currently has locations in Seoul and in Singapore (where it’s working with the JTC Launchpad co-working space), and is working on its Indonesia and India spaces. Locations in the United States will be considered as well. There’s still some ways to go to reach 100, but the accelerator is just starting.
See: Life.Sreda and Marvelstone to spend $20M on fintech startups, beginning with South KoreaBroken down to cohorts of roughly 15 startups, twice a year, the 10,000 startups goal doesn’t seem so far-fetched. Where the going gets tough, however, is getting to start, operate, and maintain 100 such centers over the projected seven-year period. 10K will need to collaborate with its partners very efficiently and acquire spaces quickly to be able to stay on schedule.
Joe figures the major challenge for 10K will be to attract quality startups. That sounds about right – especially if there is to be a consistent output out of all the accelerator centers for the next seven years. However, he feels that with the right partners, raising the funds necessary for the project will not be a problem, as he can take advantage of “excessive liquidity in the market.”
Marvelstone says it will be the “anchor investor” in the program.
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