As generative AI reshapes industries worldwide, the startup investment landscape is also undergoing rapid transformation. Industry observers say that beyond securing funding, the ability to implement AI in real business operations and integrate technologies into scalable business models is becoming a defining factor for startup survival and growth.
At the center of this shift is South Korea’s TIPS program, a government-backed initiative designed to support technology startups. As competition intensifies, the role of accelerators is evolving from simple early-stage investors into long-term scale-up partners capable of supporting technology validation, commercialization, and global expansion.
In a recent interview, Bae Sang-seung, co-CEO of New Paradigm Investment, said the startup market is entering a new phase in which execution capability matters more than fundraising itself.
“Startups are now being evaluated on how effectively and realistically they can implement AX (AI Transformation) into actual operations,” Bae said. “The speed at which companies integrate AI into workflows and decision-making processes is becoming a critical growth variable.”
New Paradigm Investment recently drew attention in the Korean startup ecosystem after four of its portfolio companies were selected for this year’s TIPS program. The selected startups span multiple sectors including biotechnology, pet healthcare, AI-powered commerce, and digital content platforms.
According to Bae, the achievement reflects broader changes in the investment market.
“TIPS evaluations have become far more demanding in terms of both technological sophistication and market viability,” he explained. “Early-stage startups are now expected not only to demonstrate technical capability, but also prove commercialization potential and global scalability from an earlier stage.”
Bae identified DX (Digital Transformation) and AX as the defining themes shaping the next phase of startup growth. While AI adoption itself once attracted investor attention, he said the focus has shifted toward practical implementation and operational efficiency.
“AI is no longer just a branding keyword,” he said. “What matters now is whether startups can use AI to automate workflows, improve productivity, and build data-driven business systems.”
To accelerate that transition, the company operates its own internal collaboration program called “NP Family AI Hub,” where portfolio startups share generative AI use cases, workflow automation strategies, and operational experiences.
Bae emphasized that reducing trial-and-error costs is particularly important for early-stage startups with limited resources.
“For startups, repeated mistakes can be extremely expensive,” he said. “We focus on sharing practical AX implementation cases — including failures — so companies can shorten adaptation time and improve execution speed.”
Asked about the current venture investment climate, Bae said investors are increasingly prioritizing sustainable technological competitiveness over short-term growth indicators.
“In the past, rapid user growth alone could attract attention,” he noted. “Now investors are looking more closely at AI capability, proprietary data structures, and global expansion potential.”
New Paradigm Investment plans to execute approximately 10 billion won (about $100 million KRW) in new investments this year, focusing primarily on AI and deep-tech startups. The company says its strategy goes beyond capital injection to include government R&D linkage support, investor relations consulting, follow-on funding strategies, and global business expansion assistance.
“We are entering a structural transition period driven by DX and AX,” Bae said. “Our goal is to help promising startups move beyond the domestic market and secure long-term competitiveness on the global stage.”
He added that the role of accelerators themselves is changing.
“Accelerators are no longer just investment firms,” Bae said. “They are becoming long-term strategic partners that help startups design growth strategies together. We plan to continue advancing execution-focused growth models tailored for the AI era.”
