April Startup Funding Slumps to 2025 Low in South Korea

April marked a significant slowdown in South Korea’s startup investment scene, with total capital inflow dropping to KRW 255 billion—the lowest monthly figure of 2025 so far. This dip brings the total below the KRW 300 billion mark for the first time this year, following a strong March performance that barely kept the first quarter in positive territory. Compared to the previous month, this represents a decline of over KRW 200 billion.

Despite the broader slump, several startups managed to secure notable funding. Leading the way was Fraser Therapeutics, an innovative drug discovery company specializing in targeted protein degradation (TPD), which raised KRW 29 billion from global investors. RLWRLD, a robotics startup building a foundational model for autonomous systems, garnered an impressive KRW 21 billion in seed funding. Graphene Square, an advanced materials company, followed with a KRW 16 billion investment.

A sector-by-sector analysis shows that consumer tech emerged as April’s standout. It not only attracted the highest total investment but also recorded the most deals. A range of platform startups—from food tech and pet services to fandom engagement and beauty—successfully drew investor interest. In software, artificial intelligence (AI) remained a strong magnet for funding, with early-stage companies earning recognition for technological innovation. Meanwhile, the real estate/proptech sector maintained a steady pace in deal volume, though individual investments tended to be smaller. Conversely, the bio-healthcare sector, once a favorite among investors, saw a noticeable decline in attention during April.

One defining characteristic of the month was the absence of mega-deals. No single investment surpassed KRW 100 billion, with the largest topping out at KRW 29 billion. Moreover, fewer than ten deals exceeded USD 10 million, marking April as the slowest month for high-value investments so far this year. However, a positive trend emerged: a growing number of early-stage startups, especially in deep-tech fields such as AI and robotics, secured substantial seed funding. Many of these startups were either led by experienced founders or demonstrated strong potential for global market expansion.

April also featured strategic corporate moves, notably in M&A activity. Travel tech leader Yanolza sold its loss-making food and beverage subsidiary, Yanolza F&B Solution, to Naver—likely as part of preparations for an upcoming IPO. Additionally, mental health platform Trust was acquired by Nudge Healthcare, reflecting consolidation within the digital health space.

Investor activity shows that venture capital firms—including Stonebridge Ventures, Enlight Ventures, and Smilegate Investment—played a more active role than traditional financial institutions. Global investors maintained strong interest in the Korean market, with firms such as Parksha Capital, Coropranext Korea, and Altos Ventures making key investments. Japanese asset manager Profits stood out as a noteworthy new entrant to the Korean startup ecosystem.

A troubling trend in April was the persistently low investment in women-founded startups, which received only KRW 2 billion across just four deals. This highlights the ongoing funding challenges faced by female entrepreneurs.