[StartupRecipe] South Korean Startup Investment Recovers in Q3

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#Weekly Funding Overview

[Oct.9 ~ Oct.13]

The total funds raised by Korean startups of this week is KRW 67.4 Billion.

Company	Industry	Amount	Round	Investors
Autonomous A2Z	Self driving	34 billion	Series B	Korea Development Bank, Hana securities, Hana Ventures
Habit factory	Insure tech	6.5 billion		Shinhan financial
Mobiletech	Digital twin	13 billion	Series B	Korea Investment & Securities, Samsung Venture Investment, SJ Investment Partners, We Ventures, Woori Bank, Hyundai Motor Group Zero One, Genie Asset Management
NexusAI	Legal tech	2 billion	Seed	Hana Ventures, Primer Sazze Partners
Codnut	Edutech	-	Seed	JB Ventures
Watervation	Greenhouse gas device	-	Seed	JB Ventures
Kowork	Foreigner HR	-	Seed	JB Ventures
Gongdo	Edutech	-	Seed	JB Ventures
Verybusy	Delivery	-	Seed	JB Ventures
Phoneb	Phone plan service	-	Seed	JB Ventures
Willog	Control management solution	-	Series B	NVESTOR, Woori Venture Partners, NauIB Capital, IBK, Wonik Investment Partners, Woori Bank, NBH Capital, Cape Investment & Securities
Boundary	Game	-	Seed	Crafton
Motionvalue	Robotics management	-	M&A	Myrobotsolution
Elphis Cell therapeutics	Bio	4 billion	Series A	Daegyo Investment, BSK Investment, Pathfinder H, LK Technology Investment, the turning timing
Bluelabs	Upcycling	300 million	Seed	Next dream angel club, KUHoldings
Overthehand	Virtuber tech	-	Pre-Series A	DS Investment& Securities, CompanyX
Wemeet	Cultured meet	-	Pre-Series A	IBK Capital, CNT Tech, IPS Ventures, D.CAMP
JEJEMEME	Kids Platform	2 billion	Series A	Hana Ventures
J&J TECH	Healthcare	-	Grant	TIPS

Major Funding

• Self driving solution company Autonomous A2Z has raised KRW 34 billion in funding. Founded in 2018, the company focuses on unmanned mobility and operates a 12-seater boxcar, an unmanned shuttle, and two unmanned delivery vehicles that can be loaded with more than 300 kg, and can operate at a maximum speed of 60 km unmanned on public roads. Funds will be utilized for overseas expansion.
• AI-based spatial information service Mobiltech receives KRW 13 billion in investment. Provides 3D spatial information, hardware, and software solutions for smart cities with 3D space scanners that replicate space. The company plans to expand its domestic and international customers and prepare to list on KOSDAQ.
• Habit Factory receives 6.5 billion won in strategic investment. The company operates insurance comparison and recommendation app SignalPlanner, which uses AI to recommend customized products and consult with agents. Invested in Shinhan Financial to collaborate on customized product development.

#Trend Analysis

South Korean Startup Investment Recovers in Q3

As Q3 draws to a close, the startup investment landscape reveals intriguing patterns. While monthly fundraising figures have seen fluctuations, a quarterly view paints a promising picture with a discernible upward trajectory. Despite an overall dip in investment compared to the previous year, there are signs of a gradual recovery. Q3 witnessed a 32% decline compared to the same period last year, a considerably narrower gap compared to the over 55% downturn observed in Q1-Q2.

Q3 also saw a notable uptick in the size of investments compared to Q2. Noteworthy players include TossBank, securing 285 billion won, Musinsa with 200 billion won, and Korea Credit Data raising 100 billion won.

Moreover, Q3 witnessed over 20 companies successfully attracting investments of 10 billion or more, surpassing the first quarter’s tally. This suggests an uptick in investment quality. While the initial two quarters were characterized by a handful of entities commanding over half of the total investment share, Q3 witnessed a more diversified pool of successful companies securing 50 billion won or more, mitigating the phenomenon of investment concentration.

Should this investment momentum persist into the fourth quarter, it bodes well for the broader investment ecosystem’s recovery. A survey by StartupRecipe last year highlighted a significant number of investors anticipating a resurgence in the investment climate by 2024. However, with total investment raised through the third quarter of this year falling short of the preceding year’s first-half figures, an overall reduction in investment activity is expected compared to last year’s onset of the decline.

Growth-stage startups emerged as the driving force behind the surge in funding during Q3. The number of startups securing Series B and beyond more than doubled, showcasing robust market sentiment. Notably, Series C and higher stages also demonstrated strength, bolstered by an upswing in pre-IPO investments, alongside increased participation in Series D and E rounds.