Kakao to help launch startups based on science institutes’ AI technology; second-cohort applications up 85%

[Financial News] Kakao Corp. is expanding a support program that connects AI research achievements at South Korea’s four major institutes of science and technology with startup creation and commercialization. With the first cohort producing results such as investment and proof-of-concept (PoC) projects, demand among AI researchers to launch businesses is growing, and the number of teams applying for the second cohort has risen by about 85% year on year.
Industry sources said on the 2nd that a total of 122 teams applied for the second cohort of Kakao AI Sail Launch, run by Kakao Investment Co., Ltd. in partnership with the four institutes. That is an increase of about 85% from the 66 teams that applied for the first cohort.
Kakao AI Sail Launch is a program that identifies promising AI technologies and ideas held by the institutes and helps turn them into startups and commercial ventures. It is jointly hosted by Kakao Investment Co., Ltd. and Kakao AI Sail, and supports research-stage technologies in reaching real-world businesses by connecting them with investment reviews and opportunities for proof-of-concept projects at Kakao affiliates.
The increase in applications is believed to reflect investment and business partnership results from the first cohort. A total of five teams won awards in the first-cohort program held last January. Four of them—Anybridge AI (KAIST), Blackbox (UNIST), Glosori (GIST) and SimpoBros (DGIST)—secured investment, while PAI Research (KAIST) is also close to signing an investment agreement.
Blackbox, which developed AI-based technology to adapt webtoon intellectual property (IP) into video, completed a paid proof-of-concept project with Kakao Entertainment Corp. and secured follow-on investment. Anybridge AI, an AI infrastructure software startup, and Bros, which has AI-based spatial technology, also received follow-on investment from external investors.
Kakao Investment Co., Ltd. also expanded support for the second cohort. It increased the number of final award-winning teams from five to eight and nearly doubled the total prize money, from 39 million won to 75 million won. The plan is to award 30 million won to one grand-prize winner, 10 million won each to two excellence-award winners, and 5 million won each to five encouragement-award winners.
The scope of links to commercialization has also been broadened. Teams can propose technologies and business ideas in fields related to the business areas of Kakao affiliates—including Kakao AI, KakaoBank Corp, Kakao Mobility Corp., Kakao Entertainment Corp. and Kakao Pay—or on a topic of their choice. The teams ultimately selected will have opportunities for proof-of-concept projects through investment reviews by Kakao Investment Co., Ltd. and matches with relevant staff at its affiliates. However, investment and proof-of-concept projects will proceed only after separate reviews and consultations.
The second cohort of Kakao AI Sail Launch will hold its final-round presentations and awards ceremony at Kakao AI Campus on the 10th. The eight selected teams are slated for investment reviews and proof-of-concept links with Kakao affiliates after December.
Kakao Investment Co., Ltd. Vice President Kim Taek-hoon said, “Through the first cohort, we confirmed the potential for the outstanding AI research capabilities of the four institutes to lead to investment and real-world businesses,” adding, “For the second cohort, we expanded the number of awards and the scope of support so that more AI startup teams can grow in the market.”
[email protected] Jang Min-kwon Reporter