This article was published on Dec. 17, 2024, at 5:53 p.m. on the Chosun Biz Money Move (MM) site.
Atenum Investment, a venture capital (VC) firm, has intensified the liquidation process of the 'Atenum High-Growth Companies Investment Fund,' formed in 2014. The sale of Clover Virtual Fashion's shares, considered the fund's last asset, has seen a lowered target valuation. Initially valued at 800 billion won, it has been adjusted down to 700 billion won.
According to the VC industry on the 17th, Atenum Investment recently began selling Clover Virtual Fashion's shares at a valuation of less than 700 billion won. Although it initially presented an 800 billion won valuation, it appears the firm is negotiating sales with multiple VCs holding secondary funds after adjusting expectations downward.
Clover Virtual Fashion, which led Atenum Investment to extend the term of the Atenum High-Growth Companies Investment Fund from March 2023 to next March, is considered a key portfolio. The company’s value, which was 27 billion won during the Series B round investment in July 2014, surged, raising expectations for a so-called 'exit' bonanza.
Initially, Atenum Investment pursued the sale of shares at an 800 billion won valuation. Established in 2009, Clover Virtual Fashion is known for its 3D clothing simulation software 'CLO,' which is also valued for its use in creating outfits for game and animation characters.
However, most institutions, including domestic VCs, turned a blind eye to the 800 billion won valuation. Although the sale of shares began in July of last year, Shinhan Venture Investment was the only firm to acquire a portion of the shares over the course of more than a year. This comes as the venture investment market has shrunk due to high-interest rates, alongside Clover Virtual Fashion's disappointing performance last year.
According to the Financial Supervisory Service's electronic disclosure system, Clover Virtual Fashion's consolidated sales last year amounted to 47.6 billion won, with an operating profit of 900 million won. Compared to the previous year, sales increased by about 53%, but operating profit dropped by over 89%. This was due to a significant increase in advertising expenses aimed at expanding overseas operations.
Atenum Investment is reported to have turned its direction toward liquidating its equity stake after lowering the valuation. Instead, it participated in a 50 billion won new investment attraction, which Clover Virtual Fashion conducted at a pre-valuation of 700 billion won, using the 'Atenum Growth Investment Fund 2023.'
A source from the VC industry noted, 'Although a fund maturity extension was made once to maintain the 800 billion won valuation, it seems the valuation was lowered as extending the maturity further became challenging.' They added, 'However, Atenum Investment expressed growth expectations by acquiring new shares from Clover Virtual Fashion.'
Atenum Investment plans to complete the sale of Clover Virtual Fashion's shares in the first half of next year. Once the share sale is completed, the recovery results of the Atenum High-Growth Companies Investment Fund are expected to improve, as the valuation of 700 billion won exceeds 25 times the initial investment value of 27 billion won.
The Atenum High-Growth Companies Investment Fund is considered a core venture fund of Atenum Investment, a leading VC in the country. Although the fund's liquidation date is next March, it has reportedly achieved over 400% recovery results compared to the committed amount by investing in companies such as Dunamu, Zigbang, Kakao Games, and Pearl Abyss.