Global Funds will support K-startups in expanding their business internationally with global capital
The Ministry of SMEs and Startups (Minister LEE Young, hereinafter referred to as MSS) has announced its selection of asset management companies for its Global Funds 2023.
The Korea Venture Investment Corporation (KVIC) evaluated applications and conducted onsite screening before selecting seven asset management companies for this year’s project.
The timeline for the investment process includes an announcement in May, document evaluation in June and July, onsite screening in July, and passing through the deliberative committee on investment in July.
In 2023, MSS aims to reach over KRW 1.3032 trillion (approx. USD 975 million) in global funds by investing KRW 64.9 billion (approx. USD 48.55 million) from a fund of funds. A total of 45 international venture capital firms applied, resulting in a competition of 7.5 to 1 based on the investment amount.
45 funds applied for a total investment of KRW 491.1 billion (approximately USD 368 million). The actual investment amount was KRW 64.9 billion (approx. USD 48.55 million), resulting in a competition ratio of 7.5 to 1.
Since 2013, MSS has been raising global funds in which a fund of funds invested and that overseas venture capital firms manage. MSS bridges South Korean companies with international investors, allowing startups in South Korea to receive investments from overseas.
As of June 2023, a fund of funds invested KRW 628.7 billion (or USD 47 million) in 59 worldwide funds, raising a worth of KRW 8.8515 trillion (USD 6.62 billion). The funds are distributed across 30 funds US, 14 Southeast Asia, 8 China, 5 Europe, 1 Middle East, and 1 Latin America.
Through global funds, 553 Korean companies have received investments totaling KRW 1.064 trillion (or USD 747 million), which is 1.6 times the initial amount of the fund of funds. Notable cases include Woowa Brothers, Viva Republica (Toss), and Kurly, which have become unicorn companies with investments from global funds.
LEE Young, Minister of SMEs and Startups, stated, “MSS will use its global fund network to attract investments in South Korean startups and support their expansion worldwide.”
Since Minister Lee took office, MSS has accelerated its efforts to support the global expansion of South Korean startups by forming a joint fund with the US and Saudi Arabia and participating in Saudi Arabia’s BIBAN and France’s Viva Technology.