[StartupRecipe] What 3 Years of Korea’s Q1 Startup Data Reveal About 2025

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#Weekly Funding Overview

[April. 7~ April. 11]

#FUNDING

Company	Inudustry	Amount	Round	Investors
Carebell	Senior care	-		PKSHA Capital
Vibeon	Edtech	3 billion	Series A	NH Bank, Nice Investment Partners, Enlight Ventures, KODIT, Digital Daesung
Scon	Virtual IP Content	-		Naver D2SF
Homes company	Proptech	-		PROFITZ
Deepvello	Agriculture	-	Seed	AI Angel Club
GRINERGY	LTO Battery	2.2 billion		Titan Bolt
Rete semiconductor	Fabless	1.2 billion	Pre Series A	Telechips
Studio Meta-K.	AI Content	2 billion	Series A	Korea Investment Partners
Heum	AI Tax	10.5 billion	Series B	IBK Industrial Bank, Quad Ventures, Kiwoom Investments
Allmade	Medical device	-	Seed	Big Bang Ventures
LIBEST	Battery	1 billion		Daejeon Investment Finance
Hemeko	Beauty	5 billion		Altos Ventures
Grepp	Online testing platform	4 billion		We Ventures
UNEEPLUS	Computing solution	-	Seed	Nanum angles
F-Lab	Edtech	-	M&A	Underdogs

#TREND ANALYSIS

What 3 Years of Korea’s Q1 Startup Data Reveal About 2025

The first quarter of 2025 has concluded, providing crucial insights into South Korea’s startup investment landscape. Analysis of Q1 data from 2023 through 2025 reveals a market that has weathered a severe downturn and is now experiencing a measured recovery, albeit with significant shifts in investment patterns and sectoral preferences.

The investment market experienced a significant contraction in the first quarter of 2023, with total funding plummeting 75% year-on-year. For the first time in years, quarterly investments fell below KRW 1 trillion, and deals exceeding KRW 100 billion were virtually nonexistent. Consumer tech, particularly platform-based services, saw declining interest, and many startups faced management challenges, restructuring, and cost-cutting measures. Despite the slowdown, industry insiders viewed the downturn as a necessary reset. The market began to shift focus toward long-term sustainability, and notably, one new unicorn emerged during this period—marking a rare bright spot in an otherwise sluggish quarter.

By the first quarter of 2024, the market showed signs of a rebound, with investments increasing 37% year-on-year. While mega-deals of over KRW 100 billion remained absent, mid-to-large scale investments of KRW 30 billion or more began to increase. Policy support from the government further fueled recovery efforts.

Technology startups, particularly in AI-based SaaS, AI semiconductors, and generative AI, drew investor attention. Companies that endured the cold snap demonstrated improved financial discipline through workforce optimization, business restructuring, and global expansion strategies. Many successfully secured new funding, with some reporting improved earnings and returns to profitability. Sector-wise, bio/healthcare gained traction, software continued to perform well, and manufacturing drew renewed interest. Consumer tech, however, continued its downward trend.

In Q1 2025, total investment reached KRW 1.18 trillion—a slight decrease from the previous year but a 52% increase compared to 2023, indicating a potential bottoming out. Yet, large-scale deals over KRW 100 billion remain absent, and overall activity has yet to return to the pace seen during the 2021–2022 boom.

While the recovery trend continues, challenges persist. The quarter was marked by a rise in negative developments such as failed follow-on funding rounds, service suspensions, and restructuring processes. In particular, heavily funded platforms in the commerce and logistics sectors—such as Ballan, Team Fresh, and Manna Corporation—faced mounting difficulties.

Investment has become increasingly concentrated in select sectors. Bio/healthcare accounted for 26% of total investment, continuing its strong momentum, while software investment focused heavily on AI-related themes, including generative AI, AI semiconductors, and AI agents. In contrast, sectors such as edtech and blockchain saw no investment deals exceeding KRW 10 billion, signaling waning investor interest.

A review of first-quarter data over the past three years highlights a recovering, yet cautious, investment landscape. While signs of stability are emerging, the absence of large-scale investments suggests a shift toward conservative, value-driven funding. In 2025, the market is expected to remain selective, with a growing polarization between high-potential tech sectors and those falling out of favor.

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