[StartupRecipe] Key Factors Driving Outstanding Seed Funding in Korea

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Key Factors Driving Outstanding Seed Funding in Korea

Despite a general cooling in the startup investment climate, some early-stage startups are still attracting significant seed funding, drawing market attention. An analysis of Korean startups that secured large seed investments of over 3 billion won from 2024 to the present (April 2025) reveals two core success factors: a focus on promising sectors with high growth potential and outstanding team capabilities.

The most prominent field is undeniably Artificial Intelligence (AI). Aligned with global trends, generative AI, large language models (LLMs), and foundation model-related startups are receiving intense interest in the domestic early investment market. Many startups that attracted substantial seed investments during this period leveraged AI as their core technological competitive advantage, achieving high valuations across various industries including healthcare, content, and defense. For example, Open Research secured 10 billion won even before product launch, while Soombit AI gained market recognition for its generative AI-based healthcare solutions. AI clone service Pickle received investment from a renowned Silicon Valley VC, and Asteromorph is focusing on developing foundation models with the goal of achieving superintelligence.

Alongside AI, robotics technology is also a major driver of large early investments. Holiday Robotics, which develops humanoid robots, attracted a record-breaking 17.5 billion won in funding at the seed stage last year. RLWRD, researching robot foundation models, also drew attention this year by securing an exceptional 21 billion won seed investment. Robotics technology is highly anticipated for its potential to solve widespread social challenges including severe labor shortages, replacement of dangerous work, and industrial automation.

Furthermore, in the deep tech sector, quantum computing startup OQT and defense AI specialist Quantum Aero are among those that attracted large initial investments. Best Innovation, a rare success case in consumer technology targeting the premium aesthetics market, is also noteworthy.

Another commonality among these startups is the outstanding capabilities of the founding team. They are generally composed of experts with deep domain knowledge, serial entrepreneurs with successful track records, or young talents with exceptional potential. Specific examples include Open Research, founded by a former Kakao Brain CEO; Soombit AI, established by a former Kakao Brain CHO; IZE Entertainment, led by a former Kakao Entertainment CEO; RWLD, founded by the founder of FuturePlay; OQT, with founding members from QuEra; Pickle, a team founded by medical students who pursued their studies abroad; and Asteromorph, comprised of young researchers in their 20s. This kind of proven experience and expertise played a crucial role in building investor trust and securing large investments at the early stage.

Despite the overall atmosphere of investment contraction, the combination of technology sectors presenting clear future value and growth potential, such as AI, robotics, and deep tech, paired with founding teams possessing deep expertise and execution capabilities to realize and commercialize these technologies, continues to earn investor trust and confidence. This trend of capital inflow into early-stage startups is expected to continue for the time being.

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