A startup called SENSEE, which creates braille translation content for visually impaired individuals using artificial intelligence (AI), has experienced a embezzlement scandal involving its CEO. Domestic venture capital (VC) firms that invested in SENSEE have belatedly grasped the situation and are working on responses.
According to the venture investment industry on the 14th, the CEO of SENSEE, identified as Mr. Seo, reportedly embezzled some of the company's investment funds and fled overseas. SENSEE had raised about 30 billion won in a series B round last year. A representative from one of the investment firms explained, "I understand that the CEO of SENSEE has embezzled company funds and left for overseas."
SENSEE has secured funding from several institutions, including SK Telecom, Kakao, Daesung Private Equity, KAIST Startup Investment, and QDUS Ventures. Last year, the company attracted approximately 30 billion won in series B investments from ATP Investment and Korea Investment & Securities and was preparing for an initial public offering (IPO) by selecting Korea Investment & Securities as the lead underwriter. If everything went according to plan, a listing was scheduled for next year.
Investment firms are belatedly recognizing the embezzlement scandal at SENSEE and are urgently developing countermeasures. Some investors have reportedly requested due diligence materials from SENSEE as they prepare to confirm the facts and consider legal responses. A representative from one VC that invested in SENSEE noted, "We are currently assessing the embezzlement allegations that have arisen at SENSEE."
If the allegations of embezzlement at SENSEE are confirmed, it is expected that issues of mismanagement among the investors will also arise. Industry analysts suggest that limited partners (LPs) who invested in SENSEE may consider suing the VCs involved.
SENSEE is a venture corporation that focuses on publishing braille textbooks and fairy tale books, as well as printing labels for delivery boxes and pharmaceuticals, based on AI technology that converts languages, text, formulas, and tables into braille. The company has developed technology that can reduce the time required to convert university mathematics textbooks into braille from the usual 6-10 months to half a day, enabling mass, low-cost, and rapid production of braille content.
In the U.S. market, a single braille book typically costs between $150 and $200, but SENSEE has managed to lower that price to $40 through its own technological expertise. Notably, SENSEE has been making a name for itself in the global market. Last year, the company surpassed 30 billion won in sales, accelerating its growth. This represents more than a 108% increase compared to the previous year's figure of 14.4 billion won.
However, given that the CEO has fled overseas, there are growing concerns that the growth story presented by the company might not be true. A source in the industry commented, "This is shockingly unbelievable news."