[StartupRecipe]Blockchain Startup Investments Plunge by 67%

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#Weekly Funding Overview

[July. 24~ July. 28]

The total funds raised by Korean startups of this week is KRW 125.5 billion.

Company	Inudustry	Amount	Round	Investors
Aplykorea		-	Seed	Blue Point Partners
Pharos bio	Bio	-	IPO
Buen Camino	Market platform	-	Pre-Series A
Puntacompany	Audio food commerce	-		Smilegate Investment
Wello		-	Pre-Series A	Korea Investment Partners, KODIT
Comment Computer	Blockchain cloud	8 billion	Series B bridge	Inbody, HB Investment
Tripearlgames	Game	-	Seed	Bigbang Angels, Korea Omega Investment
Mineis	Secondhand Platform	1.21 billion	Seed	Woori Venture Partners
Smoretalk	Visual generation	-	Seed	Korea Investment Accelerator, Post Holdings
Liquor square	Craft Beer	300 million	Seed	ImpactSquare
Finda	Fintech	47 billion	Series C	JB Group, 500Global
Lalajob	Gig worker platform	-	M&A	Saramin
SUM	Mobility	-	Seed	Genaxis
BookIPs	Edutech	8.5 billion	Series A	KB Investment, Primer sazze partners, SL Investment, Blue Point Partners, SBA
Delabs	Web3 Game	6 billion		Hashed, Planetarium, Merit Circle, Polygon, Spartan
Hospitalpeople	Nurse community	-	Seed	Mashup Angels, KODIT
Chainlogis	Delivery	1 billion		Purple Corp
Equaltable	Eco friendly coffee	-		Sparklab, Youth Impact, Band
Coolschool	Edutech	-	Grant	TIPS
Inobus	Recycling	-	Grant	TIPS
Pitterpetter	Pettech	-	Grant	TIPS
Sealife ScienceLab	Seafood	-	Seed	Collzdanamics
Taky	Tablet Kiosk	-		Collzdanamics
Stress sloution	Mindwellness soultion	500 million	Seed	Korea Investment Accelerator, Enlight Ventures,
Deepsmartech	Materials	-	Grant	TIPS
SSSDC	Oneday class	3 billion	Series A bridge	Lighthouse Combined Investment, LGU+
DreamAES	Mobility	13 billion	Pre-IPO	Korea Investment, InterValue Partners, Golden Oak Ventures, DB Capital
CTTD	Digital Marketing	-	M&A	Africa TV
Iron Device	System Semiconductor	12 billion	Series B	Cornerstone Investment Partners, KB Investment, IBK Industrial Bank, Wonik Investment Partners, Daishin Securities
Moreh	AI Infra SW	15 billion		KT Group
Susimdal	Edutech	-	Seed	The Invention Lab
Lutra	NFT Solution	-	Seed	Gyeonggi CCEI
Sakak	Data management	-	Grant	TIPS
Sispia		1 billion		Yougpoong paper
Bnjbiopharma	Bio	-	Grant	TIPS
fanagement	Fandom platform	-	Bridge
Uppthera	Bio	10 billion		YuanBio Venture Capital

Major Funding

• Fintech company Finda has attracted an investment of KRW 47 billion. This investment, secured in just 2 years and 6 months, acknowledges the growth and growth potential of the loan brokerage market. Founded in 2016, Finda has surpassed KRW 1 trillion in brokerage amount, and this investment will be used for various purposes, including the development of services for refinancing home mortgage loans.
• AI infrastructure software Moreh secures KRW 15 billion investment. It provides products and services covering the entire process from AI semiconductor and cloud infrastructure to AI application services. With this investment, Moree plans to accelerate its AI full-stack business.
• DreamAEC has secured a KRW 12.5 billion investment. Founded in 2015, the company specializes in providing vehicle infotainment solutions to major automakers, including Hyundai, Kia, Renault Samsung, and GM Korea. The newly acquired investment will be put to use in expediting solution development, ramping up mass production, and expanding its presence in the global market.
• Common Computer raised an investment of KRW 8 billion. Established in 2018, it provides cloud infrastructure services, creating a decentralized cloud and developing an AI sharing network platform. This strategic investment, along with the collaboration of strategic investor InBody, will be used to advance their AI chatbot.

#Trend Analysis

Blockchain Startup Investments Plunge by 67%

Blockchain startups are facing their most challenging period this year, with the recent Luna crisis and FTX collapse dealing a serious blow to the cryptocurrency market’s trust and further intensifying the market downturn. As a result of the cryptocurrency crash and the broader economic slowdown, investors are actively steering clear of risks, causing blockchain investments to nosedive.

According to PitchBook data, fundraising for cryptocurrency startups during the first quarter of this year hit the lowest point since 2020, experiencing an alarming 80% drop compared to the same period last year. The impact is being felt even by heavyweight investors like Sequoia Capital, who responded to the economic downturn by cutting their investments in half, cryptocurrency funds included, for startups.

In Korea, the downward trend in blockchain investment has been a recurring theme year after year. In 2022, the total funds raised by blockchain companies amounted to KRW 261.1 billion, marking a 24% decline from the previous year. During the first quarter of this year, the funds raised were a meager KRW 63.5 billion, witnessing a staggering 67% drop compared to the same period in the previous year. Up until July, a total of KRW 90.2 billion was invested in related startups, and if the current investment pace persists, it is expected to fall short of last year’s numbers. However, there is a glimmer of hope as analysts predict the investment scale to show signs of revival from the second quarter onwards. Investors are still showing keen interest in companies equipped with core technologies, creating possibilities for additional fundraising opportunities.

Throughout the first half of the year, considerable investments have been funneled towards infrastructure companies, particularly web3 gaming platforms, mainnet development, and on-chain data analysis startups. Many of these companies have struck gold with overseas investment firms and major corporations, targeting a global audience.

Leading the pack as one of the most well-funded companies is Story Protocol. This innovative venture aims to build a “Story Lego Ecosystem” within the web3 realm, empowering creators to craft diverse stories with ownership and incentives managed through blockchain-based IP. Another noteworthy endeavor, Superblock, secured a significant KRW 9 billion investment for its development of a decentralized mainnet with a lightweight node structure, simplifying access to the blockchain ecosystem for users. Likewise, Common Computer obtained a substantial KRW 7 billion investment to fuel the expansion of its AI development ecosystem on a global scale.

Another standout performer, TeamBlackBird, has raised KRW 8.5 billion. Utilizing virtual asset wallet identification technology, TeamBlackBird creates CryptQuant and provides its services to over 200 countries. The CryptQuant data is being utilized by major global media and other sources, earning the company recognition as a trusted entity.

Additionally, the blockchain landscape continues to evolve with the emergence of new services like virtual asset exchanges, blockchain communities, and AI virtual asset management firms, all benefiting from initial investments. Despite the challenges posed by the global economic downturn, cryptocurrency crashes, and the slow commercialization of blockchain technology leading to a decline in startup investments, the technology’s potential to eliminate intermediaries and enhance transparency and efficiency remains undeniably promising. Though uncertainty clouds the timeline for market recovery, the presence of ample cryptocurrency funds in the market and the unwavering hope of investors for the technology’s potential bode well for avoiding a pessimistic evaluation of the market.