The auditorium on the fifth floor of the Seoul Center for Creative Economy and Innovation was packed with prospective entrepreneurs and startups interested in attracting investment. At the event, called “Investment Class,” five differently colored investment firms showed their true colors under one roof. MYSC, which focuses on impact investing, Sopoong Ventures, which bets on climate technology, KingoSpring, which is pursuing aggressive growth, Kingsley Ventures, which claims to be extremely efficient, and Futureplay, which claims to be a powerhouse in deep tech. Each of them had only 10 minutes to present their identity, strategy, and concerns.
Their pitches were a snapshot of the current state of the Korean venture capital ecosystem. With each investor trying to differentiate themselves with different keywords such as impact, climate, tech, and efficiency, the diversity of the Korean VC market and the challenges they face were clearly visible.
Particularly noteworthy is the distinct positioning of each firm. MYSC, with its large 90-person team, seeks impact, Kingsley Ventures, with its small number of aggressive investors, and Futureplay, with its network of large corporations, are all on very different paths in the same market.
MYSC, a leader in impact investing
“Social and environmental issues are the source of innovation. We aim to discover and invest in companies in these areas.”
This declaration from MYSC is in line with current trends in the investment industry. However, it remains to be seen whether this approach will lead to actual profitability.
As of October 2024, MYSC's performance is noteworthy. AUM of KRW 91.1 billion, 170 cumulative investee companies, KRW 42.4 billion in investment execution, and a portfolio company value of KRW 2.2 trillion are proof of this. In particular, its large staff of 90 people is unusual for an impact investor.
MYSC's investment portfolio is distinctly differentiated. The composition of 32% (64 companies) from outside the metropolitan area, 14% (28 companies) from women-owned businesses, and 5% (10 companies) from universities shows intentional inclusivity. However, this raises two questions:
In terms of profitability:
Is there a real return on local investment?
Balancing inclusive investment with financial performance
The lack of exit stories
Impact perspective:
Practical measurement and verification of impact
Sustainability of local innovation
The practical challenges of scaling up
MYSC had clear criteria for impact investing prospects. It was divided into two categories: first, “companies that solve social problems through innovative technologies or business models,” and second, “companies that create local value by leveraging the unique characteristics and resources of the region.” In particular, it emphasized locally-based innovations, such as developing business models using local resources, fostering local talent, and revitalizing local communities.
MYSC's impact investment framework was also impressive. It utilizes impact indicators based on the UN SDGs, and is creating impact through the following opportunities:
To engage in partnerships to systematize “backward leap” projects from innovative companies.
To build capacity and connecting with the rest of the world from an impact perspective.
To transform social problems into sustainable businesses by redefining them as sources of innovation.
To set a precedent for institutional and policy investors through impact investing.
To provide patient capital for impact enterprises that require long-term time horizons.
In particular, MYSC's impact framework had a clear I-O-Output-Outcome-Impact structure, and established a systematic impact measurement system utilizing ESG integration and IRIS+ indicators. This demonstrated MYSC's philosophy of creating real social value beyond mere investment.
However, some fundamental questions remain. First, can inclusive investment strategies translate into real returns; second, can large-scale organizational operations be an effective model for impact investors; and third, can the goal of local innovation translate into real scale-up?
It will be interesting to see how MYSC can overcome these challenges and present a new model of impact investing.
Sopoong Ventures' focus on climate technology
“Recently, we have been focusing on the keyword climate technology. But it doesn't just mean the environmental sector.”
The presentation by Sopoong Ventures clarified their strategic positioning. Based on their experience since 2008, they are looking for companies pursuing technological innovation in a wide range of areas, including energy, environment, agri-food, and circular economy.
With $50 billion in AUM and more than 160 portfolios, the company's position as a mid-sized investor is clear. However, its recent strategy centered on climate technology is a new challenge. In particular, the 'N-Harvest' program and the 'Impact Summit' program with the Nonghyup Central Association are seen as realistic approaches that leverage existing networks.
“We believe that beyond simple investment, the growth of the founding team and the growth of the company should go hand in hand.”
This quote from Sopung Ventures sums up their investment philosophy. They seek to balance financial performance with social impact, and this is embodied in three key strategies.
First, they are constantly expanding their investment universe. While building a portfolio centered around climate tech, they are also expanding their investments to include agri-food, energy, and the environment. In particular, we actively seek out companies with circular economy models and take the lead in creating a sustainable business ecosystem.
Second, we have a systematic growth support system. We focus on discovering promising early-stage companies through placement programs and increasing their enterprise value through professional acceleration. We also provide collaboration opportunities with various partners to help portfolio companies grow substantially.
Finally, we have a systematic approach to impact measurement and management. It has established an impact assessment system based on the UN SDGs and transparently discloses its investment performance through regular impact reports. It also continuously monitors and manages the impact performance of its investee companies to enhance the effectiveness of social value creation.
“Creating a profitable business model while solving environmental problems with innovative technologies is the impact we seek.”
While Sopoong Ventures' climate technology-focused strategy seems timely, there are some significant challenges. First, how to rapidly build expertise in the field; second, how to balance impact and profitability; and third, how to compete in the global marketplace. How these challenges are addressed will be key to the organization's future success.
Only time will tell if the company's experimentation in the new field of climate technology will prove successful, or if it will be remembered as a hasty pivot to follow a trend.
Kingosprings pursues aggressive growth
“We're moving with the motto of hustle this year.”
Founded in 2019, this quote from KingoSpring sums up their progressive company culture. Despite its short history, the company has been very aggressive.
The company started its activities as a TIPS operator by running the Incheon Youth Entrepreneurship Academy in 2022, and recently expanded its bases to the United States and Vietnam to build a global network. Since 2024, the company has been investing more aggressively with the “Hustle Principle,” which has resulted in the award of the Gyeonggi-do Governor's Citation, more than 30 acceleration programs, 57 company selections, and 12 TIPS selections (including two deep-tech TIPS).
“We look for companies that have the potential to grow 10x in five years.”
Their investment philosophy is clear. They have invested in 58 companies, mainly in the ICT platform, biohealth, and small cap sectors, with 27 TIPS picks. However, it remains to be seen whether this rapid growth will translate into quality growth.
KingoSpring invests and incubates through a clear process of 'Discovery - Accelerating - Investment - Value-up'. It starts by discovering startups with high growth potential, provides systematic training and mentoring, and after investment, continues to provide support for continuous value improvement. However, this is the basic structure of most accelerators. What really sets KingoSpring apart is the speed at which this process is executed. The ability to take risks and execute quickly is definitely an advantage for KingoSpring.
While the rapid growth is impressive, there are a few challenges that stand out. First, there's the lack of validation due to its short track record. Second, there's the question of whether its aggressive international expansion will translate into tangible results. How KinggoSpring overcomes these challenges will be a key determinant of its success in the future. However, their ambition to become one of Korea's leading global investment firms makes us look forward to even greater leaps forward.
Kingsley Ventures: a new experiment in family office efficiency
“We are a family office. Anglo-American family offices are generally conservative, but we're different.”
This statement from Kingsley Ventures is both challenging and somewhat unexpected. At its core, a family office is all about stewardship of assets, and Kingsley Ventures is very aggressive. The structure is interesting, with only three investment staff, including the managing director, but supplemented by part-time specialists. Last year and the year before, they made over 20 early stage investments, and in 2023, they received five TIPS, all of which were selected.
What's particularly impressive is the way they operate. “Pure manpower is important, but we also look for startups that work 24/7 with the professionalism of a hundred per day.” The company's track record is evident in the fact that it has invested KRW 35 billion in 114 companies, and its portfolio companies have a combined enterprise value of KRW 1.5 trillion. Recently, the firm is preparing to obtain a VC license and is also pursuing a new $20 billion fund.
While Kingsley Ventures' experiment is intriguing, it raises a few fundamental questions. First, will the current highly efficient operating model be sustainable at scale; second, how will it balance its aggressive investment strategy with the inherent responsibility of managing the assets of a family office; and third, what will its identity and operating strategy be after obtaining a VC license?
In the end, time will tell whether Kingsley Ventures' experiment will become a revolutionary model for family offices or an example of the limits of excessive efficiency.
Futureplay bets on deep tech: combining expertise and networks
“Our mission is to sustainably create startups that can change the world in 10 years.”
Futureplay's announcement was unique from the start. It was particularly impressive that the organization has built a portfolio of 251 investments in its 11-year history, with a survival rate of over 90%. Add to that the fact that it has KRW 276.9 billion in AUM and a MOIC of 2.9x, and it was overwhelming.
Of course, these numbers also raise some questions. A high survival rate of 90.6% may indicate a conservative approach rather than innovative investing. The portfolio size of 251 companies raises the question of whether there is substantial valuation support. The MOIC of 2.9x also needs to be compared to the industry average.
Its strength in the deep tech sector is clear:
Portfolio composition:
Robotics/Mobility: 34.7%.
Bio/Healthcare: 12.2
Software/SaaS: 21.7
Hardware/Material: 19.7
Their success stories were concrete and compelling. The story of BMW's collaboration with Seoul Robotics was particularly impressive. “When BMW came to Korea in 2019 and saw several investors, we already had eight autonomous driving portfolios.” Four successful IPOs and 15 M&As are further proof of their expertise.
Futureplay's biggest differentiator is its network of collaborations with large corporations. This enables quick market validation and reference acquisition for portfolio companies. However, there is also a risk of becoming dependent on large companies. It's about balancing innovation and commercialization, and whether this model can work in a global market.
It remains to be seen whether the 251 portfolio companies will be able to provide substantial support and whether the high survival rate of over 90% can be maintained. It will also be an important strategic choice whether to further strengthen its expertise in the deep tech sector or pursue portfolio diversification.
To date, Futureplay is an important example of the potential success of Korean deep tech investments. However, their next challenge will be how to balance deepening their expertise and expanding their network in a rapidly changing technology environment.
Different Paths, Same Purpose: Growing Startups
What impressed me most about the event was the unique investment process of each investment firm. MYSC made alignment with the UN SDGs a core investment criterion and sought to harmonize social and business values. Excursion Ventures emphasized in-depth communication with the founding team, especially the ability to communicate impact as an important evaluation factor. KingoSpring focused on systematic discovery and nurturing of startups through its placement program. Kingsley Ventures lowered the barriers to entry for early-stage startups through flexible investments using safe notes, while Futureplay helped its portfolio companies validate and grow their markets through strategic collaborations with large corporations.
Hearing from these five investors in one place demonstrated the diversity and expertise of the Korean investment ecosystem. Whether it's impact investing, climate tech, rapid growth, operational efficiency, or deep tech, each investor has a strong competitive edge in their area of expertise. This differentiated expertise will be an important factor for startups when choosing an investor. The biggest takeaway from the event was that we were able to strategically choose the investor that best aligns with our company's direction by understanding the characteristics of each investor. We look forward to utilizing these insights in our future fundraising efforts to build a more effective fundraising strategy.
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