[StartupRecipe] Korean Climate Tech Funding Jumps 148%

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#Weekly Funding Overview

[Sep. 16~ Sep 20]

The total funds raised by Korean startups of the week is KRW 15.7 Billion.

Company	Inudustry	Amount	Round	Investors
Team pass	Beauty	-	Grant	TIPS
Leesol	Digital therapeutics	4 billion	Series A	Vine ventures
Bomchan	Stone Commerce	-	Seed	Primer
Unitlab	Modular construction	-	Grant	TIPS
ICU Corporation	Healthcare	-	Grant	TIPS
Optowell	Semiconductor	4 billion		Wonik Investment Partners, Time Works Investment
Datos	Management SaaS	-	Seed	Heim ventures, Angel invetors
SSenstone	Security	6 billion		Korea Development Bank,ES Investor, Daedeok Asset Management
Spacebeam	Space optical communication technology	1.7 billion		JeJu CCEI, Gravity ventures
Lauren choo	Non alcohol	-	Pre-Series A	Kaist Ventures, Hanyang university holdings
JSW		-	Grant	TIPS
DXGENE KOREA	Bio	-	Grant	TIPS
GOAT Company	Home appliance platform	-	Pre-Series A	Infobank
Nadoomodoo	Software development	-	Seed	Korea Investment Accelerator
Publy	Developer Community	-	M&A	Seeso
Doogooda	Medical management solution	-	Grant	TIPS
Sane Nuts Studio	Game	-	Seed	Bonn Angels Venture Partners

#Major Funding

• SsenStone, an authentication security startup, has raised 6 billion KRW in funding. Founded in 2015, the company is behind the development of OTAC (One-Time Authentication Code), a proprietary technology that provides secure authentication without the need for traditional credentials like IDs, passwords, or one-time passwords (OTPs). SsenStone’s solution generates unique, one-way random codes for each transaction or login, offering a more seamless and secure way to verify identity.
• Resoil, a wellness tech and electroceutical startup, has secured 4 billion KRW in funding. Launched in 2017, the healthcare company is advancing the commercialization of tACS (Transcranial Alternating Current Stimulation), a novel technology that uses low-level alternating currents to stimulate the brain at specific frequencies, syncing it to the desired wave patterns. Resoil’s innovation aims to offer new therapeutic solutions in brain health and wellness through non-invasive electrical stimulation.

#Trend Analysis

Korean Climate Tech Funding Jumps 148%

As climate change emerges as a global issue and recent prolonged heatwaves intensify concerns, South Korea is witnessing a significant increase in interest towards climate problem-solving technologies. Climate tech, encompassing various fields such as renewable energy, resource circulation, carbon reduction, and eco-friendly mobility, is gaining traction with its focus on developing technologies for a sustainable environment.

Investor interest in related companies has been steadily growing. As of September 22 this year, startups in the environment, energy, and sustainability sectors have raised 222.7 billion won, marking a remarkable 148% increase compared to the same period last year. An analysis of these funded startups reveals that the majority are active in resource circulation, developing circular economy models for waste management, resource recycling, and eco-friendly material development.

Notable investments include ldcarbon, which secured 40 billion won for its resource circulation and raw material regeneration technology. Terracle and Repla also attracted investments of 10.5 billion won and 10 billion won respectively for their plastic waste treatment and decomposition solutions.

The energy sector has attracted the largest amount of investment, with sustainable and eco-friendly energy being recognized as a key element in achieving carbon neutrality goals. Brite Energy Partners, a renewable energy generation company, secured the top investment of 100 billion won in the environment/energy/sustainability sector this year.

Carbon emission management and carbon capture solutions are also preferred investment areas. As data becomes increasingly crucial in addressing climate change, software companies are successfully attracting investments. In contrast, investments in agri-food sectors like cultured meat, which had attracted large-scale investments in recent years, are showing a declining trend.

Examining the investment stages, many startups are raising funds at Series A and Pre-Series A stages, indicating that the climate tech market is still in its early phases. Investors include major corporations like Hyundai Motor Group and POSCO, as well as domestic and foreign venture capital firms, financial institutions, and policy finance entities. Large-scale follow-up investments are anticipated as these companies grow.

With the global carbon neutrality goal set for 2050, climate tech has become an essential area for both governments and corporations. The South Korean government has announced plans to create a 3 trillion won climate technology fund and invest 9 trillion won in the climate technology sector by 2030. This government support, coupled with strengthened corporate ESG management and global efforts to address the climate crisis, is expected to drive continuous growth in the climate tech sector.