Key Points:
- Investment in startup companies is shifting from software to manufacturing industries.
- 107 SMEs and startups raised a total of 857.4 billion won in Series A investments in the second half of last year.
- The fundraising amount per company increased to 8 billion won.
- The semiconductor sector received the highest investment share, followed by the environmental, energy, pet-related, and fashion sectors.
- Overseas investors have been investing in early-stage startups in the gaming and entertainment sectors.
- Investment from regular companies in startups has significantly decreased.
A shift in startup investments has been observed, with a transition from software to manufacturing industries. In the second half of last year, a total of 857.4 billion won was raised by 107 small and medium-sized enterprises (SMEs) and startups in the Series A stage, indicating a decrease in the amount of funds raised and the number of companies securing investments compared to previous periods. However, the fundraising amount per company increased to 8 billion won, indicating a positive trend.
The investment landscape by sector shows the ascendancy of manufacturing industries, particularly the semiconductor sector, which received the highest investment share of 13.9 percent. Other sectors that have seen an increase in investments include environmental, energy, pet-related, and fashion sectors. The bio and medical sector has also seen an increase in investment share, despite moving from the top position to second place.
Overseas investors have been focusing on early-stage startups in the gaming and entertainment sectors. For example, U.S. venture capital firm Griffin Gaming Partners invested 15 billion won in a development company of PC-based action massively multiplayer online role-playing game (MMORPG) Black Storm. Japanese toy manufacturer Bandai also invested 13.7 billion won in a webtoon and animation film production company, YLAB Studios. K-pop agency Attrakt secured 10 billion won in investment from the Singapore-based investment firm Evergreen Group Holdings.
On the other hand, investment from regular companies in startups has significantly decreased. In the second half of last year, only 32 large and medium-sized enterprises participated in Series A investments for 30 startups, which is half the level compared to the previous year. This indicates a shift in the investment landscape, with more focus on manufacturing industries and overseas investors taking the lead in early-stage investments.
