The Korean government’s Fund of Funds has emerged as a key driver in nurturing domestic unicorn companies and promising deep-tech startups. The fund has provided early-stage growth capital to companies ranging from recent unicorns like Rebellions and FuriosaAI to global AI leaders such as Nota, Upstage, and TwelveLabs, which were selected for CB Insights AI 100 2025.
The Ministry of SMEs and Startups’ 2025 second investment round demonstrates intense industry interest. 98 funds applied for approximately 1.6 trillion won, creating a competition ratio of 6.5 to 1. The newly launched NEXT UNICORN Project’ received particular attention for stage-specific investments amid intensifying AI and deep-tech competition.
Strong interest reflects real market expansion. In 2024, investments in top 10 deep-tech sectors increased 34% year-over-year, with AI sector investments surging 75%, demonstrating that venture investors highly value the innovation and technology of AI and deep-tech startups.
The NEXT UNICORN Project Scale-up Fund introduces a focused approach by increasing average investment per company to over 10 billion won and strengthening connections between Ministry support programs. The Fund of Funds will selectively invest around 310 billion won and establish approximately 15 funds worth 600 billion won with private capital.
The Fund of Funds plans to significantly expand the NEXT UNICORN Project from 2026, concentrating investment capabilities on fostering AI and deep-tech unicorns. This positions Korea’s Fund of Funds as a core ecosystem for continuously producing globally competitive unicorn companies.
