Scroll to top
© 2020, Startuprecipe theme by Rssow

[StartupRecipe] Alternative Investments are on the rise among millennials

#Weekly Funding Overview

[June. 21~ June. 25 ]

The total funds raised by Korean startups of this week is KRW  687.4 billion.

FitpetPettech7 billionSeries BMirae Asset Venture Investment, Mirae Asset Capital
SoltechEco plastic4 billionSeries AKTB Network, Samsung C&T Corporation
GomicorpEcommerce7.5 billionSeries AIndustrial bank of Korea, Ubiquoss Investment, KB Investment, F&F Partners, Platform partners
NemesisBio/Healthcare2.5 billionCapstone Partners, Kground Ventures, UTC Investment
adxad tech-M&AKakao Games
AtreezMobile platform-M&ATMON
Wrtn technologydigital tools-SeedMashup Angels
ReconlabsAR500 millionSeedKakao ventures, Shinhan Capital, Naver D2SF
ReebonzLuxury Fashion10.5 billionSeries ADSC Investment, Bass Investment, Premier Partners, AJU IB, Lighthouse Combined Investment, Pathfinder H, Industrial bank of Korea
iocropsSmart farm1.8 billionSeries AISU Venture Capital, Enlight ventures, Seoul Techno Holdings
ALIAI2 billionSeries ANC Soft
BluedotVideo-Naver D2SF, GU Equity, Smilegate Investment, KB Investment, Bluepoint partners, Poshtech holdings, Square Ventures
Viva RepublicaFinancial Service460 billionseriesGKorea Develpoment Bank, Altos Ventures, greyhound capital, Alkeon Capital Management
VoyagerxAI30 billionSeries ASoftbank Ventures, Altos Ventures, Yellow dog
GollalaEcommerce1.5 billionPre-Series AHana Financial Investment, Info Bank, cjinvest, Zepyruslab
WizschoolSW Platform3 billionSeries ADAEKYO INVESTMENT, F&F Partners, Spring Camp, Capstone Partners
AivDeep learning5 billionSeries AKDB Capital, L&S Venture Capital, Quantum Ventures Korea, K2 Investment Partners, We Ventures
AimbleBio/Healthcare400 millionSeedschmidt
Megazone CloudCloud50 billionSeries BSalesforce Venture
PplinkSoftware1.2 billionWoori bank, Strong Ventures, Klim Ventuers
PharosibioBio/Healthcare18 billionSeries C
Emoticboxemoticon-Pre-Series AEAST GATE PARTNERS
sixshop8 billionViva Republic
DeliverylabFood delivery-Mirae Holdings
VinssenEco friendly boat14.5 billionSeries BSCHMIDT, DSC Investment, EN Venture partners, SJ Investment partners
MezooBio/Healthcare9 billionSeries AThe wells Investment, Shinhan venture, SJ Investment Partners, AJU IB, Intervest, JX Partners, Albatross Investment, Mint Venture Partners

Major Funding

  • Viva Republica, the operator of Toss, finalized their series G investment worth KRW 460 billion. They will push ahead with their super app strategy with an integrated mobile financial platform that provides banking, securities, and personal financial services from one app. The company will use the investment for the growth of the Toss platform and the growth of affiliates.
  • Voyager X has raised KRW 30 billion in investment. They operated AI-based video editor VREW and mobile scanner vFlat. The company’s strength is that it has the best development team in the AI field. Its goal is to hire AI talent with the investment and grow into a globally competitive AI startup.
  • Vinssen, an eco-friendly ship manufacturer, has raised an investment of KRW 14.5 billion. The company plans to lead the market with eco-friendly engines, which is their core technology. They will accelerate the commercialization of eco-friendly ships through partnerships with the government and private companies.
  • Reebonz Korea, a luxury goods platform, has raised KRW 10.5 billion won in investment. It provides buying and rental services of luxury goods, short-term and regular subscription services, and resell services. With this investment round, the company will recruit more talent, secure additional luxury goods, and spend more on promotion.

#Trend Analysis

Millennials’ and Gen Z’s investments are becoming increasingly diverse. Investment options are increasing as alternative asset investment platforms emerge to invest in stocks and other assets. Those who enjoy investment as they would enjoy playing games try out new investment services without hesitation.

This trend first came about overseas. A few years ago, P2P platforms and RoboAdvisor investment platforms, which enable individuals to invest in small amounts due to their solid mobile accessibility, have recently emerged as investments in mobile resell platforms and various assets. Alternative asset investments are already becoming common in other countries through GOAT, a global sneakers trading platform; Yieldstreet, an investment platform for real-estate and shipping; ALT, a platform to buy and sell sports cards; and Rally, a platform for splitting investment into expensive collections.

In Korea, such investment alternative platforms are emerging one by one, focusing on startups. All of them have the characteristic of increasing assets with small split investments on a mobile basis that emphasizes simplicity. Among various sneakers resell platforms, KREAM, which Naver spun off, and Soldout, which Musinsa runs, are rising. KASA, a real estate investment platform, is a platform that allows small purchases of parts building like stocks and completed its first public offering in Gangnam last year, with a large number of people in their 20s and 30s flocking to the public offering.

Music Cow is a platform for partially purchasing music copyrights of composers, with 70% of its members being millennials. Brave Girls, who became popular due to their “reverse driving,” made headlines with more than 1,000% of Rollin’s music revenue. In addition, TESSA, an artwork investment platform using NFT, and Buysellstandard, an expensive asset sculpture sales platform, are also investment platforms that have recently appeared. The characteristic of these services is that they can purchase assets in small amounts like sculptures on a mobile basis that emphasizes simplicity. Large companies and banks that quickly read MZ generation investment trends also use them for new services and marketing. Shinhan Bank tried to sell art pieces in installments, while E-Mart 24 offered its stake in artworks as a prize.

Millennials are more anxious than any other generation because getting a job alone will not make them financially successful. The generation is even called ‘capitalist kids,’ meaning they are willing to do anything to earn money, such as having two or more jobs, which is very common. They will continue to take an interest in new alternative investment platforms as their assets increase.

sign up for Startup Recipe newsletter


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

sign up for Startup Recipe newsletter