[StartupRecipe] Proptech Startups Face Challenges Amidst a Downturn

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#Weekly Funding Overview

[Nov.13 ~ Nov.17]

The total funds raised by Korean startups of this week is KRW 48.4 Billion.

Company	Industry	Amount	Round	Investors
JEJEMEME	Kids Platform	500 million	Series A	Hashed
Ice Linker	Digital Cooler	-	Grant	TIPS
Libertree	E-Cataloging in publication	-	Grant	TIPS
Belinker	Manufacturing O2O	-	Seed	KODIT
Naturemobility	Mobility	-		KIBO
Theodn	Digital therapeutics	-	Grant	TIPS
AILIKE	Gen AI	1 billion	Seed	Klim ventures
K-Beauty worldwide	Beauty brand accelerator	-		KimGisa Lab, MegaStudy-Yoonmin-Mark Investment Association
Carbon Energy	Carbon Capture	-	Seed	Miraeholdings, Rising S Ventures, Rowe Partners
Wellscare	Healthcare	-	Pre-SeriesA Bridge	Alchemista Partners
Changupin	Offline ordering	2.3 billion	Pre-Series A	Spark Lab, CJ Investments, Magna Investments
Beeble	Web3	2.6 billion	Pre-Seed	DCG, Hashkey Capital, GBV Capital, Samsung Next
Caredoc	Senior platform	17 billion	Series B	Murex Partners, DTR Partners, SK D&D, K-Bridge Investment, SGC Partners, IBK Industrial Bank, IAM, D3 Jubilee Partners, BNK Venture Investment & InterValue, Hyundai Marine & Fire Insurance
Three labs	Wine order	-	Seed	The Ventures, FI private investment partnership
Grey scale	Senior commerce	-	Pre-Series A	New Paradigm Investment, Digital Daesung
Modhaus	Blockchain	10 billion	Series A	Sfermion, SM Culture Partners, Laguna Investments, KDDI Open Innovation Fund, Foresight Ventures, Reflexive Capital, Cooper Turley, Richard Ma, Michael Carter
Oncocross	Bio	14.5 billion	Pre IPO	Intervest, ST Capital, Moru Asset Management, PathFinderH

#Major Funding

• Caredoc, a senior care platform, attracts a 17 billion won investment. Starting as a caregiver matching service, CareDoc has expanded its business areas to home care services, visiting nursing care centers, and residential care. As of November, the cumulative transaction amount has surpassed 150 billion won. With the investment funds, the company plans to build a care workforce supply network and preempt locations for senior housing business.
• AI drug development company Oncocross secures a 14.5 billion won investment. With this investment, the company aims to proceed with the subsequent development of its major pipeline, having completed global Phase 1 clinical trials in Australia, with the goal of going public in the first half of next year.
• Blockchain-based entertainment startup Modhaus raises a 10 billion won investment. Operating the Cosmos platform, where fans can participate in decisions related to idol group operations, Mohaus provides tokens that allow voting on artist activities when fans purchase digital photocards, ensuring transparent voting processes.

#Trend Analysis

Proptech Sectors Face Challenges Amidst a Downturn

The real estate and proptech sectors are navigating a challenging period in 2023, characterized by a tightening of fundraising conditions and the impact of a downturn in the real estate market. The investment landscape, which experienced a surge in recent years with the emergence of innovative proptech companies, has cooled due to the fluctuating investment landscape caused by the COVID-19 pandemic and broader economic uncertainties.

Investment inflow into the sector is projected to fall below 100 billion won in 2023, representing a significant decline from the previous year. While last year witnessed substantial investments in proptech companies, with some receiving as much as 200 billion won, there has been a notable lack of large-scale investments in 2023.

The focus of investment has shifted towards contech companies innovating the construction market, co-living services catering to the growing single-person household demographic, and startups specializing in spatial interior design and real estate management.

Traditional real estate brokerage and shared office platforms, once dominant investment targets, are now overshadowed by B2B companies smartening the construction market. Additionally, services digitizing the market using AI and IoT, catering to lifestyle-specific accommodations, space rebranding, and urban regeneration projects are attracting investor interest. Fintech combined with real estate (proptech) and companies emphasizing ESG management to create sustainable buildings are also receiving significant attention.

Despite the emergence of innovative solutions, the investment outlook for real estate/proptech companies remains cautious. According to a government survey, real estate startups have decreased by 47% in 2023 due to economic downturns. Recent data from a proptech forum publication further confirms a significant decline in investment activity.

Despite the challenging market conditions, domestic startups in the related field are exploring opportunities for expansion into global markets. The proptech industry remains in its early stages, and its future trajectory is likely to depend on the broader economic recovery.