[StartupRecipe] What Korea’s TOP20 Startup Deals Reveal About 3years of VC Shifts

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What Korea’s TOP20 Startup Deals Reveal About 3years of VC Shifts

As the first half of 2025 draws to a close, an analysis of Korea’s top 20 startup investments over the past three years reveals significant shifts in the venture investment landscape—marked by a contraction in deal size, evolving sectoral preferences, and a more cautious, fundamentals-driven investment approach.

According to data compiled by Startup Recipe, the total investment amount for the top 20 startups in H1 2025 dropped by 36% compared to the same period in 2023. The average investment per company also declined by nearly 40%. Unlike the previous two years, which saw multiple mega-deals exceeding 100 billion won, the first half of 2025 recorded none, underscoring a market-wide recalibration.

Investment trends over the past three years point to a dramatic pivot from fintech to artificial intelligence as the dominant sector. In 2023, fintech players such as Toss Bank and Music Cow were among the top recipients of capital. However, beginning in 2024, investor attention shifted toward AI-driven startups, including those specializing in AI semiconductors, generative AI, and large language models (LLMs). Major funding rounds for companies like Upstage, DeepX, and Twelve Labs confirmed AI’s central role in the investment agenda.

This momentum continued into 2025, with Wrtn Technologies emerging as the top-funded startup in the first half, reinforcing AI’s continued prominence. However, the market is beginning to diversify. Investment capital is now flowing into sectors such as climate technology, healthcare, and advanced manufacturing, reflecting a broader appetite for innovation beyond AI.

Noteworthy examples include Amogy, a company developing carbon-free power generation solutions, and Reco, which operates a smart waste collection platform—both of which secured high-ranking positions in this year’s investment leaderboard.

One of the most visible changes in 2025 is the near disappearance of mega-deals. While two deals surpassed the KRW 100 billion threshold in the first half of 2024—specifically for DeepX and Upstage—no such transactions occurred this year. Instead, mid-sized investments in the range of KRW 30 to 80 billion have gained traction, suggesting that investors are placing greater emphasis on fundamentals, sustainable growth models, and long-term technological value.

In terms of investment stage, Series B rounds led activity in 2025, indicating a shift away from the early-stage (Series A) focus observed in previous years. The share of pre-IPO investments also increased, reflecting growing investor confidence in companies with clear exit pathways.

While top-tier startups continue to attract participation from global venture capital firms and strategic investors, the broader investment landscape remains largely domestic in structure, with Korean investors playing a central role in deal-making.

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