[StartupRecipe] S.Korean Startup Investment Rebounds in Q3

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#Weekly Funding Overview

[Sep. 30~ Oct. 4]

The total funds raised by Korean startups of the week is KRW 56.5 Billion.

Company	Inudustry	Amount	Round	Investors
Nanoelectronics	Nano materials	4.5 billion	Series A
Belinker	Fab-less Based Manufacturer	-	Pre-Series A	Korea Investment Accelerator
Technomatrix	AI model operation optimization	-		Pacemakers
4am	AI marketing	-	Seed	Unbound lab
COVIS Technology	Semiconductor measurement and inspection equipment	10 billion		Ajou IB, Murex Partners, MW& Company, ON Venture Investment
Monitor Corporation	Medical imaging AI solution	-	Series B	UTC Investments, Premier Partners
DeepFusion AI	Autonomous driving	-	Seed	JNP Global
Seeann Solution	Medical device	-		CNT Tech
MarqVision	MarqVision AI company	22 billion	Series A2	Altos Ventures, Smilegate Investment, Hillspring Investment, Y Combinator, Atinum Investment
Goathaven	Math education platform	-	Seed	Incheon CCEI
Permit	Smart farm solution	10 billion	Series B	KB Investment, Korea Investment Partners, Shinhan Investment & Securities, Shinhan Asset Management, IBK Industrial Bank, Prolog Ventures, Acimpact Asset Management
Zombiemate	Game	-	Seed	Neptune
Graphai	Vector DB solution	3 billion	Pre-Series A	We Ventures, Time Works Investment, Kiwoom Investment, Quad Ventures
EasyTem	Skincare device	-	Grant	Scaleup TIPS
DR Drive	reduction gears	-	Grant	TIPS
MarinaChain	netzero	-	Grant	TIPS
Bioroom	ESG	-	Grant	TIPS
Ecopem	PEM	-	Grant	TIPS
Bio Universe	Eco friendly materials	-	Grant	TIPS
Cofishery	fishery ecommerce	-	Grant	TIPS
Lumos	Business tool	-	Grant	TIPS
Smlns	Healthcare	-	Grant	TIPS

#Major Funding

• AI startup MarkVision has raised KRW 22 billion in fresh funding, completing its KRW 50 billion Series A round. The company specializes in developing solutions to block counterfeit goods and illegal content.
• Agri-tech startup Permit has secured KRW 10 billion in funding. The company delivers comprehensive solutions across the agricultural spectrum, from building smart farms and developing seeds to offering advanced cultivation technologies and managing the distribution of produce.
• AI medical imaging firm Monitor Corporation has raised KRW 7 billion in funding. Founded by a team of radiology professors, the company’s flagship product is an AI-powered chest CT lung cancer diagnostic solution.

#Trend Analysis

S.Korean Startup Investment Rebounds in Q3

Investment in South Korean startups rebounded in the third quarter of 2024, reaching 1.61 trillion won ($1.2 billion), according to stratuprecipe data. This marks a 22 per cent increase from the previous quarter, signalling a positive trend in the country’s startup ecosystem.

While the figure represents a 20 per cent year-on-year decline, analysts note that this comparison is skewed by an unusually high concentration of investments in July and September 2023. When adjusted for this anomaly, the Q3 2023 performance demonstrates a robust upward trajectorThe number of investment deals, excluding government grants, surged 30 per cent compared to Q2, further underscoring the sector’s momentum. A key development has been the stabilisation of monthly investment inflows since June, with four consecutive months exceeding 500 billion won. This contrasts sharply with the volatile swings of up to 800 billion won observed in 2023, indicating a maturing market.

Large-scale investments have also seen an uptick, with three deals surpassing 100 billion won and a record 53 investments exceeding 10 billion won in Q3. The consistent quarter-on-quarter increase in substantial funding rounds bodes well for the sector’s recovery in the latter half of the year.

Sector-wise, biotech and healthcare led the pack, followed by media and content, manufacturing, and software. While media and content saw fewer deals, it was bolstered by two unicorn-scale investments in Spoonlabs and PIP Labs. Manufacturing continued its ascent, while consumer technology platforms notably fell out of the top five, reflecting shifting investor priorities.

Although current investment levels pale in comparison to the exceptional years of 2021-2022, the maintenance or increase in funding rounds is seen as a positive signal for startups. The swift allocation of the 840 billion won Startup Korea Fund, introduced this year, has also raised expectations for increased private sector participation.

The Ministry of SMEs and Startups recently unveiled plans to propel South Korea’s venture investment market to global standards, targeting a domestic market size of 16 trillion won and 1 trillion won in global investments by 2027. These policy initiatives are expected to not only boost investor sentiment but also stimulate tangible growth in private sector funding.