Scroll to top
© 2020, Startuprecipe theme by Rssow

[StartupRecipe] Game startup funding hits three-year low

#Weekly Funding Overview

[Jan. 1 ~ Jan. 5]

The total funds raised by Korean startups of this week is KRW 99.7 Billion.

HellomypetPet healthcare-SeedCNTtech
Le MuseeDigital Artmarket-Cnttech-DB
GOQUALHome IoT-Series BLG Electronics, Kiwoom Securities, Tuya Global, Kolon Investment, Ryukyung PSG Asset Management, NH Hedge Asset Management
MainlineIDP27 billionPre IPOHyundai Investment Partners, Intervest, Kolon Investment
MobilintEdge NPU Solution20 billionSeries BDaesungPE, GameChanger Investment, Intervest, Korea Development Bank, KDB Capital, Kyobo Securities, Union Investment Partners,
42MaruAI10 billionLG U+
ALIGO AIAdvertisements200 millionSeedSeoul Techno Holdings
EasytaskGeek worker matching-Pre-Series APacemakers
OnenessDigital Human-GrantTIPS
Space Vision AIAdvertisements-SeedVine Ventures, Fast Ventures, The Ventures, Lotte Ventures,
InupsEnergy solution-LS Sauter
StradvisionSelf driving solution42 billionAptiv
BtenergyClean energy-SeedY&Archer
ArchseoulDigital QR-Pre-Series AENSL Partners
ILL SchoolHiphop beat platform-SeedCnttech
Capsule mediaMedia-Series AKnet Investment, Hana Securities
GloudDigital health500 millionSeedKodit
Aging craftFoodtech-Y&Archer, Vine Ventures

#Major Funding

  • Stradvision, a self-driving software development company, has attracted a $33 million investment from Aptiv, one of the top three companies in the autonomous driving sector. Following the investment, Aptiv has become one of Stradvision’s major shareholders, bringing Stradvision closer to an IPO.
  • Mainline, an IDP specialist company, secured a 27 billion won investment. Mainline specializes in IDP technology fused with generative AI, with a focus on insurtech within the IDP sector. Over 10 major insurance companies have adopted Mainline solutions.
  • 42Maru secured a 10 billion won investment from LG Uplus. Providing B2B services such as AI-based search ‘QA42,’ chatbot ‘Chat42,’ and optical character recognition (OCR) ‘NL42,’ 42Maru is set to collaborate with LG Uplus through this investment.
  • AI edge AI Chip, Mobilint attracted a 20 billion won investment. The investment will be utilized for mass-producing the AI semiconductor, ARIES, and developing next-generation chip REGULUS.

#Trend Analysis

In 2023, securing funding for gaming startups proved challenging, regressing to 2020 levels and amounting to KRW157.8 billion, signifying a 50% decrease from the previous year. While unicorns like N Pixel, Hagin, and Shiftup emerged in 2021 and 2022, 2023 saw no such successes. Government data for the first three quarters revealed a 50.4% drop in venture investment in the gaming sector compared to 2022, falling even below 2019 levels.

Game startups had garnered attention from both investment institutions and game companies. However, an analysis suggests that a downturn in the domestic game industry led to reduced investments from major game companies, and the overall stagnant market conditions may have contributed to the decline. Additionally, the waning popularity of metaverse and blockchain-related fields might have played a role in the reduced investment in game startups.

Despite the overall dip in investment, companies founded by individuals with prior gaming industry experience continued to attract funding. Notably, the importance of member capabilities and game content differentiation grew in significance for investment decisions. Examining the investment stages revealed a predominant focus on early-stage investments, with seed investments making up more than half and a scarcity of Series B and higher investments.

Anticipating a positive shift, 2024 is expected to bring about an improved investment environment with interest rate cuts. This is anticipated to breathe new life into investment sentiment within the gaming sector.

sign up for Startup Recipe newsletter


Access to the latest Korean startup news and startup database for free

sign up for Startup Recipe newsletter