TLDR:
- Korean startups are seeking corporate investors as funding becomes harder to secure.
- The government in South Korea has relaxed CVC rules to attract more foreign investment.
Korean startups are facing a funding crunch as the government relaxes CVC rules to attract more investment from foreign corporate investors. TissenBioFarm, a lab-grown meat startup, experienced rapid fundraising initially but has seen a slowdown in capital raising. Private business investment fell in the first half of 2024, compelling startups to seek ways to keep going during the slowdown.
The South Korean government is looking at lifting the ceiling on CVCs to stimulate corporate investment in startups. TissenBioFarm has developed a novel biofabrication system that aims to lower the cost of producing cultivated meat and create products with a realistic appearance of meat, such as sirloin, tenderloin, and ribeye cuts.
Another startup, Mobi, is seeking corporate investors to accelerate the development of energy solutions and create a lasting impact on a global scale. The company focuses on power conversion, battery reuse, and green energy products for electric motorcycles. Regulatory frameworks in South Korea related to new energy deployment are complex, but the government is introducing supportive policies for green and renewable energy projects.
Both startups are looking to secure funding rounds in the near future, with a focus on attracting corporate VCs to enhance their growth and development in their respective fields.
