[StarupRecipe] Binge watching the Korean Online Demo Day (Sep to Oct)

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#Weekly Funding Overview

[Oct.26~Oct.30]

This week, 18 companies, ranging from MCNs to games, education, travel, food, and social ventures, reported investment news. 

Company	Inudustry	Amount	Round	Investors
5minlab	Game	6 billion		AJU IB INVESTMENT, korea credit guarantee fund, LINE Games, HYK
Plang	Consumer	500 million	Pre-Series A	Kakao Ventures, Shinhan Capital
Cheonggeurami	Consumer	-	Seed	Newblack
Deargen	Bio/Healthcare	3 billion	Pre-Series A	TS Investment, Hanaventures, Amyloid Solution
mychef	Consumer	-	Pre-Series B	AIM Investment
HauulBio	Bio/Healthcare	1 billion	Series A
different millions	Media/Content	12 billion		Hyundaihmall
EDUNPLAY	Consumer	-		Seoul Techno Holdings
TPM Logis	Logistics	-	M&A	Logispot
Undefined	Game	100 million		Neptune
Take One Company	Game	11.6 billion		Korea Develpoment Bank
NomadHer	Consumer	-	Seed	CNTTech, MYSC(Merry Year Social Company)
Korea Space Data	Real estate/Proptech	-	Seed	Futureplay, Shinhan Capital
Additor	Software	600 million	Seed	Angels
Sandboxnetwork	Media/Content	-		Nexon
iamport	Financial Service	-	M&A	Chai Corporation
Heodak	Consumer	3 billion		Industrial bank of Korea
Wehealed	Bio/Healthcare	-	Series A	Kakao Ventures, Samsung Venture Investment
CIMPLRX	Bio/Healthcare	5 billion	Series A	Atinum Investment, Company K Partners, KOREA ASSET INVESTMENT SECURITIES

Major Funding

• The beauty expert MCN Different Millions received a KRW 12 billion strategic investment from Hyundai Home Shopping. Hyundai Home Shopping owns a 40% share of Different Millions and plans to enter the live commerce market. 

• MCN Sandbox Network received a strategic investment from the gaming company Nexon. Sandbox Network and Nexon will strengthen strategic cooperation, including IP cooperation. 

• Three gaming companies also attracted investments. Takeone Company, the creator of BTS World, which is based on the K-pop group BTS, attracted KRW 11.6 billion. 5minlab, which develops gaming content  for VR, AR, mobile and PC platforms attracted KRW 6 billion. Moreover, Undefined, where anyone can create an e-sports platform, attracted KRW 100 million from Neptune.  

• Other companies that disclosed the investment amounts are as follows. CIMPLRX, a drug development company based on AI technology, and Deargen attracted KRW 5 billion and KRW 3 billion, respectively. Heodak, a chicken breast brand owned by comedian Heo Kyung Hwan, attracted KRW 3 billion. Bio-venture company Hauul Bio attracted KRW 1 billion. English conversation app Plang attracted KRW 500 million, and global document collaboration tool Additor attracted KRW 600 million. 

Undisclosed Funding

• In addition, meal kit company Mychef; PropTech business Korea Space Data, the operator of Cleanier, which provides space operation services; NomadHer, a travel application for women; Wehealed, the operator of AI application Likefit, which recognizes users’ movements; smart education provider Edunplay; and social venture  company Cheonggeurami attracted investments of undisclosed amounts.

M&A

• Chai Corporation acquired online payment service provider Import. Import is a service where users enter a line of code into the website, and the payment service provider website appears. Also, integrated transport management service company Logispot plans to acquire the general logistics company TPM Logis and become the top digital integrated logistics service provider in South Korea. 

#Trend Analysis

Binge watching Online Demo Day

Since COVID-19 hit in February of this year, the domestic start-up environment has lost steam as investments in start-ups have shrunk and start-up related events and demo days have been canceled or held online.  

However, entering the third quarter, investments are recovering as events and demo days have successfully transitioned online. 

Offline demo days used to be held in Seoul, so one benefit of online demo days, which have become the new normal, is that nationwide participation is possible.

• 2020재도전 성공 패키지 데모데이
• 관광스타트업 데모데이
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• 디캠프, Y.E.S 데모데이
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• 청년창업사관학교 2020 2회 스타트업 데모데이
• 2020 과학벨트 기능지구 액셀러레이팅 지원사업 공동 데모데이
• 팁스밋업 IR
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• 제1회 지니 포럼 및 스토리지 데모데이
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• 2020 H-온드림 데모데이
• G밸리스타트업 데모데이

Demo days were concentrated from September to October and many demo day events were conducted in real-time on YouTube. 

In November, COMEUP (11/19-11/21), the biggest global start-up event in South Korea, global accelerator Sparklabs Demo Day 15 (11/17), Bluepoint Demo Day 7 (11/24), and Korea University’s CHOO CHOO Day Demo Day (11/13) will be held. 

#More news 

• In the third quarter, venture capital in South Korea has overcome the difficulties of COVID-19 and is on the mend. According to the Ministry of SMEs and Startups, investments in the third quarter amounted to KRW 1.192 trillion, a 6% (KRW 67.6 billion) increase from the same quarter last year and a 34.8% (KRW 307.7 billion) increase from last quarter. Moreover, since the third quarter of last year, venture funds have increased to KRW 1.4793 trillion. The cumulative amount of funds from January to September (KRW 2.6948 trillion) shifting to an increase. Investments in digital and materials, parts, and equipment businesses, including ICT manufacturing and ICT services, increased compared to the third quarter last year. By the end of the fourth quarter of 2020, it is expected that an FOF of KRW 3.6 trillion will be formed and KRW 2.5 trillion in venture funds selected in the first half of the year will be completed, which will drive investment. However, social distancing measures and vacation season are likely to decrease opportunities to find VC investment companies. 

• COMEUP 2020, Korea’s largest startup festival, will start online pre-registration. The event will be held mostly online for three days from November 19 to 21. There will be 12 major conferences with three themes – social systems, work, and life – under the slogan, “Meet the Future Post Pandemic” The main events will include the AI Championship and the K-Startup Grand Challenge. Investment and export consultation meetings will also be held. Registration is available here.

• D-Camp hosted IF (Imagine Future) 2020, the largest startup street event, both online and offline from the 28^th to the 31^st. The event, which began in 2017, used to be held in the Sinchon university district, but this year, it was held for the first time at Coex in Samseong District in cooperation with the Gangnam District office. During the event, startups were advertised on large electronic displays in Samseong District near Coex. In addition, startup booths were set up and demo day events and speeches were held inside Coex.