Revolutionizing Digital Identity: Interview with the Founder of Hopae
Proving your identity online shouldn't be a hassle. That's the vision of Ace Shim, the Co-founder and CEO of Hopae, who knows all too well the headaches of entering a new country, renting a place, or opening a bank account. But thanks to Hopae, the next-gen digital identity verification solution, those days might be over. This startup uses blockchain technology to make identity verification a breeze while keeping your privacy intact.
Last November, Hopae secured $6.5 million to boost its growth across Europe and the USA. To learn more about Hopae's journey and goals, we had a chat with Ace Shim who is currently participating in the KISED (Korea Institute of Startup & Entrepreneurship Development) program, hosted at the HEC Paris Incubation & Acceleration Center.
Can you tell us about your background and what led you to create Hopae?
Ace Shim: I spent 12 years studying in the US before returning to South Korea. After graduation, I worked at LG as a blockchain researcher. My co-founder and I were selected for LG Group's startup incubator. Later, we joined Blockchain Labs as founding members, where we developed a Covid vaccination pass, called COOV, for the South Korean government, reaching 43 million daily active users while preserving privacy. This Covid pass, which was an extension of what we developed at LG, allowed us to prove our technology at a national level, used daily by 80% of the population. Ultimately, the technology and know-how from COOV became the foundation for Hopae.
This positive experience inspired us to found Hopae, with the aim of building a global infrastructure for digital identity.
What sparked your interest in blockchain technology?
Ace: Interestingly, blockchain isn't my passion per se; it's more of a means to an end. My mission stems from my experience as a foreigner in the US for 12 years. The complicated process of proving one's identity, from visa applications to opening bank accounts or renting apartments, was incredibly time-consuming and complex. I realized that proving who you are shouldn't be this hard. Blockchain technology allows us to develop solutions that enable identity verification while preserving privacy.
How does Hopae operate in the market?
Ace: We're primarily a B2B and B2G (Business-to-Government) company. For enterprises, we offer hConnect, an easy-to-integrate eID gateway that enables global identity verification all over the world. We also provide hCX, a secure and up-to-date infrastructure for wallet development. For governments, we support lots of initiatives such as the Large Scale Pilot (LSP) project in Europe.
What led you to expand into France?
Ace: We noticed a new market opportunity arising from the eIDAS 2.0 regulation in the EU. This regulation mandates that by 2026, all EU member states must provide digital identity and digital identity wallets to their citizens. By 2027, all online platforms must accept these digital identity wallets for user logins. It's a huge opportunity, comparable to when Tesla met with electric and carbon-neutral regulations.
How does this regulation affect various platforms?
Ace: It affects all platforms, including major ones like Amazon.com, Booking.com, and Facebook. The European Commission has explicitly mentioned that these platforms must integrate digital identity solutions, ensuring compliance with the upcoming eIDAS 2.0 regulation.
What made France stand out as your choice for European expansion?
Ace: We researched various countries including Germany, Belgium, Luxembourg, Sweden, Spain, and France. France stood out due to its excellent startup ecosystem, streamlined incorporation processes, and incubation opportunities. The presence of Station F, remarkable business funds, and programs like French Tech Visa were significant factors in our decision.
You joined the KISED program in June 2024. How has the program helped you overcome challenges?
Ace: As foreigners, setting up a business in France presented numerous challenges, from incorporation and opening bank accounts to obtaining visas. The KISED program operated at Station F, along with their recommendation letter, significantly streamlined these processes. It helped us meet crucial deadlines, such as joining the European consortium.
You recently raised $6.5 million, congratulations! How do you plan to invest this funding?
Ace: Thank you. We have three main strategies. First, we aim to maintain our position as a technology leader. We're using an open-source approach, allowing everyone to download our modules while we focus on creating production-level, certified modules that comply with global standards and international regulations. Second, we're focusing on thought leadership through speaking at conferences and developing content strategy for specific regulations and use cases. Our industry is quite new, it is our duty to educate and provide relevant information to our target audience. Lastly, we're investing in building our team, with a focus on hiring developers and increasing diversity.
Can you tell us more about your team and hiring plans?
Ace: We currently have a team of 20, with about 40% non-Korean members. We're looking to increase our diversity further. Our primary focus is on hiring developers who are adventurous, willing to break down barriers, and eager to become industry leaders. We’re looking for individuals who want to pave the way in ID Tech and DID solutions, and aren’t afraid to fail on the path to success.
What's next for Hopae?
Ace: As a venture-backed startup, our next step is to raise Series A funding to accelerate the growth of our digital identity verification solutions. We've discussed specific milestones with our current and potential investors, and we're working towards achieving these within the year.
Finally, can you summarize your experience with HEC Paris in one word?
Ace: I would describe it as a "bridge." HEC Paris has helped us in many ways, serving as a bridge to numerous resources. They've connected us with investors, provided access to business opportunities, and acted as a gateway to the European market. The program has also been a resource hub, allowing us to leverage various perks from Station F, such as connecting with BNP Paribas for account opening, which would have been much more challenging without HEC's backing.
Are there any final thoughts you would like to share?
Ace: We are very mission-oriented at Hopae. We believe that the future of identity verification should be pleasant. When you verify who you are, it should always lead to new opportunities. Our goal is to make this process seamless and enjoyable, opening doors to new possibilities for everyone.
Let’s hope Hopae will achieve its ambition this year. If you are a South Korean founder looking to accelerate the development of your K-startup, join our KISED program, operated by our Incubateur HEC Paris at Station F.
About the KISED program
The K-Startup Center Program, initiated by the Ministry of SMEs and Startups (MSS) and facilitated by the Korea Institute of Startup and Entrepreneurship Development (KISED), aims to support Korean startups in entering the global market. Through partnerships with global accelerators(Incubateur HEC Paris), the program provides resources and office space in target countries, facilitating the scale-up of Korean startups.