TLDR:
- Foreign venture funding for Korean startups nearly doubled in the first two months of this year compared to last year.
- South Korean startups in the content and healthcare sectors are receiving increased attention from overseas venture capital firms.
Foreign venture funding for Korean startups picks up
South Korean startups are experiencing a surge in foreign venture funding, with the number of startups garnering funding nearly doubling in the first two months of this year compared to the same period last year. This increase is accompanied by a more than doubled total funding amount, reaching 177.4 billion won ($135.3 million) in early 2024. The recent influx of foreign venture capital signals a potential revival in venture capital interest in Korean startups, following a decrease in the total number of startups raising funds from foreign VC firms in 2023.
The rise in foreign venture funding is particularly notable in the healthcare and content sectors. Companies like Clify, Genome Insight, Mediwhale, and Elice have attracted investments from overseas venture capital firms. Clify, an operator of a mental healthcare platform, secured funds from 500 Global and Dunamu & Partners, while Elice, a digital learning platform, received funding from Vertex Holdings. Additionally, Korea’s leading online travel platform operator My Real Trip raised significant funds in early 2024 from investors like BRV Capital Management and Korelya Capital.
Korean content startups have also been successful in attracting foreign venture capital, with Story Protocol, a US-based startup managing IP on the blockchain, securing a significant funding round led by a16z crypto. Despite these positive developments, there are still challenges to fostering more foreign venture investment in Korean startups. Suggestions have been made to amend startup-related rules that limit the influence of follow-on investors to attract more foreign investment.
