#Weekly Funding Overview[Nov. 08~ Nov. 12]
The total funds raised by Korean startups of this week is KRW 244.1 billion.
|Atinum Invetment, K2 Investment, Korea Investenet& Securities, DS Asset Management
|We are the
|Korea Credit Guarantee Fund
|Pre-Series A Bridge
|NextG Investment, IMM Investment, Capstone Partners, Dunamoo&Partners
|Future Play, Timewise investment, Bass Investment
|SBI Investment, Kolon Investment, The Wells Investment, ES Investor, Future Play, Prophet asset management, J Curve Investment
|KB Investment, KB Securities, Korea Investment Partners, SJ Investment Partners, The Wells Investment, Crit Ventures, Shinhan Capital
|Muirwoods Ventures, IMM Investment, Hana Financial Investment, DT&Investment, Samho Green Investment, Kiwoom Securities , eBEST Investment & Securities
|Capstone Partners, HB Investment, Winvest Venture Capital, BA Partners, Hana Bank, P&P Investment, Friend Investment Partners
|BonAngels Venture Partners, Naver D2 Startup Factory, Korea Investment Partners, Bass Invesment
|Partners Investment, SBpartners, IMM Investment
|Lotte, Korea Development Bank
|Mirae Asset Capital, NH Investment & Securities
|K Net Venture Capital, Laguna Investment
|SK Rental Car
|Contents lab blue
|Laguna Investment, Kona Venture Partners, We Ventures, Crit Ventures, Daegyeong Investment
|MYSC, BNK VENTURE CAPITAL, Nau IB Capital
|Seoul Techno Holdings
|Series B Bridge
|Capstone Partners, Bluepointpartners, United Family Capital
|SBI Investment Korea, Industrial bank of Korea, Cornerstone Investment, Yuanta Investment,
- Crowdfunding company Wadiz secured 100 billion won in Series D funding. With 80 billion won invested from Lotte, the team plans to become a comprehensive funding platform for startups and small and medium-sized business owners with Lotte Group.
- Crowdworks raised 20 billion won in pre-IPO round. It has 300,000 members as a platform to collect and process data necessary for AI technology advancement.
- Neurophet, an AI solution for brain diseases, secured 19 billion won investment. This funding will enable the company to expand partnerships with global companies and to lay the foundation for global clinical trials for standardizing dementia diagnosis.
- Jewelry tech startup Bejewel raised 9 billion won and expanded its overseas business. With turnover 5 times higher than the previous year, it opened an offline store specialized in jewelry and expanded its business area.
Corporate venture capital (CVC) will be allowed from December 30 this year.
In Korea, general holding companies were banned from holding shares in CVC, a financial company, under the principle of separation of financial and industrial capital under the Fair Trade Act. However, due to the revision last year, it was allowed to hold limited shares. As the need to promote venture investment as a way to revitalize the economy has increased due to changes in conditions such as the global economic downturn caused by COVID-19, the holding of CVC by a general holding company has been exceptionally allowed. This is because it has more room to invest than general VC and can also expect growth such as business diversification through open innovation with the parent company.
Until now, large corporations have established CVC outside the company, including Kakao Ventures and Shinsegae Signite Partners.
If venture capital led by large corporations is allowed, it is expected that they will be incorporated into the holding system and be able to execute investments in line with the direction of the holding company.
Although the industry has released regulations in the desired direction, it is analyzed that large corporations are deeply concerned in terms of capital efficiency because of regulations such as 100% wholly-owned subsidiaries. Some say that restrictions on external investment of less than 40% can also be disadvantageous when competing with global mega-funds.
In addition, even if you borrow money from a financial company during the establishment process, CVC will be allowed up to 200% of the equity capital, while general VC can borrow up to 1,000%. Another factor that reduces the attractiveness is that they are allowed to invest in foreign companies only within 20% of their total assets when the scale of overseas investment is increasing. Due to these various regulations, large companies are pleased with the permission while weighing the pros and cons of establishing CVC.
Despite concerns, large companies are expected to seek new opportunities through CVC. Currently, SK and LG are considering establishing CVC. This is because the holding company of SK has been actively investing recently, and LG finds CVC highly useful due to its abundant cash reserves.
The Korean startup ecosystem is more active than ever. Amid growing interest in the Korean market among overseas VCs, the inflow of funds into the venture market is expected to increase further through the permission of CVC.
However, it is time to improve considering the criticism that if legal restrictions on CVC are not lifted to the level of advanced countries abroad, large-scale funds such as Softbank Vision Fund cannot be created, and opportunities to invest in promising domestic startups may be lost due to investment competition with overseas VC.