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[StartupRecipe] Korean PropTech Startups Face Funding Crunch in 2024

#Weekly Funding Overview

[Dec. 9~ Dec. 13]
CompanyInudustryAmountRoundInvestors
LinkflixClimate tech-GrantTIPS
Parmir TherapeuticsBio-GrantDeeptech TIPS
Circular LabsClimate tech-GrantTIPS
SpeechlogSocial bigdata-GrantTIPS
RD SolutionSecondary battery-GrantTIPS
BeyondcapturClimate tech-GrantTIPS
Featdocument sharing-GrantTIPS
BLANKProptech-GrantTIPS
Twelve LabsMultimodal AI43 billionSnowflake, Databricks, HubSpot Ventures, IQT
MobileightAgritech-SeedKOSMES
Sweet&DataFandom platform-SeedCnttech
S& Creative cultureSport content-SeedAC Pathfinder
Nanum Vitamincharity platforms-MetLifeFoundation, MYSC
InnogridIT Solution23 billionetechsystem
SpecterReference check-Pre-Series BDo Ventures, Storm Ventures
Green-daBio energy-Pre-Series ABlue Point Partners
Major MapEdtech-Series ANexTrans, KOSMES
Seoul ExchangeOnline stock brokerage platform2 billionKIBO
THK CompanySenior care25 billionSeries BHana financial group
November NineteensVegan beauty brand-SeedNewkids investment
SpaceBitSpace internet-JNP GLOBAL
Game Changer World WideGame-Genaxis
Marine Drone TechnologyDrone5.1 billionPre-Series A
JoinandjoinFood brand-KDB Industrial Bank of Korea, NBH Capital, Signite Partners
HyperExcelAI chip45 billionKDB Capital, Korea Investment Partners, Vickers Venture Partners, Bon Angels Venture Partners, KB Investment, Company K Partners, Mirae Asset Venture Investment
DinoticiaAI Solution21 billionPre-Series A
ViewzionSmart window5 billionScale-up Partners, Aceton Investment Association, KIBO, Industrial Bank of Korea,
Orange BiomedMedical device3 billionSeries A1
APTBioBio-AHNGOOK
VEREAMORBeauty brand-Mark & Company, Solid One Partners
CurelationGlobal dating community-SeedMashup ventures
AvererE-commerce solution1 billionPre-Series ACapstone Partners
VichedamNatural-based medicines1 billionPre-Series AAgricultural policy insurance&Finance service, The next

#Major Funding

  • Hyperxcel has Secured 45 Billion Won in Strategic Investment. Hyperxcel, a technology company developing a semiconductor processor called ‘LPU’ (Latency Processing Unit) specifically designed for super-scale AI platforms like ChatGPT, is planning full-scale mass production of its chips in the second half of 2024, with anticipated sales commencing in 2026.
  • Twelve Labs has secured a strategic investment of $30 million. The company specializes in advanced image understanding AI, offering services that include video search, classification, and summarization through its innovative multimodal image understanding technology. This recent investment will enable Twelve Labs to enhance technological collaborations with global data companies.
  • TK Company has raised 25 billion won in investment. The company, which currently operates ‘Benefitcare’, a B2B welfare tool distribution platform, aims to expand into the senior life care market with this new funding.

#Trend Analysis

Korean PropTech Startups Face Funding Crunch in 2024

The Korean real estate and proptech landscape continues to face brutal headwinds in 2024, with investment volumes plummeting to new lows. According to data from Startup Recipe, the sector has attracted a mere 79.4 billion won in funding so far this year—a stark decline from last year’s already tepid 94.3 billion won investment total.

The investment landscape has dramatically transformed since 2022, when the sector still saw massive funding rounds approaching 200 billion won and even produced unicorn startups. Now, large-scale investments have completely dried up, with no funding rounds exceeding 100 billion won in sight.

Historically, real estate information and brokerage platforms like Zigbang led market growth. During the COVID-19 era, shared office and co-living markets showed promising expansion. Today, the focus has pivoted towards digital transformation solutions leveraging big data, AI, and blockchain technologies. However, most investments remain concentrated in early-stage startups, suggesting that rapid industry growth remains challenging.

Construction tech (ConTech) has emerged as the most attractive sector this year. Companies like Cupix (digital twin technology) and Xpanner (construction site automation solutions) have secured significant investments, with a notable global market orientation. Facing a tough investment climate, many startups are diversifying their strategies by expanding service ranges. Some are moving from space management to rebranding, while others are extending from co-living to short and long-term rental services. Some are even exploring adjacent industries like interior design. Major players such as Zigbang and Rsquare are aggressively targeting international markets.

Government startup trend surveys reveal a continued decline in real estate entrepreneurship. While the 8.7% year-on-year drop is an improvement from 2023’s dramatic 47% decline, the downward trajectory persists.

A September report from the Korea PropTech Forum highlighted that investments have plummeted to just a quarter of 2022 levels.

Despite the overall investment downturn, selective funding continues for startups integrating innovative technologies like AI, big data, and AR/VR. The nascent state of Korea’s proptech industry and ongoing digital transformation of traditional real estate sectors suggest potential for future growth.
As the real estate market remains intrinsically linked to broader economic conditions, improved market dynamics could potentially reinvigorate the investment landscape.

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