JYP Entertainment's corporate venture capital (CVC) arm, JYP Partners, is working behind the scenes on new investments. The firm has outlined a plan to invest in promising consumer-goods startups if it secures capital this year through programs such as the regular commitment project by the Fund of Funds. The idea is to build a portfolio that offsets volatility in the entertainment industry.
According to the startup industry on the 25th, JYP Partners is searching for consumer-goods startups to invest in, including food. It is receiving recommendations for promising consumer-goods startups from accelerators and is focusing on fields that can expand touchpoints with the entertainment industry.
The startup market is closely watching JYP Partners' moves after it had effectively gone into "open but not doing business" mode for a time. Founded in 2023, JYP Partners took its first steps by appointing former DA Value Investment Vice President Park Jin-o as CEO and obtaining a new technology business finance company license. However, the firm went through internal turmoil, including Park stepping down, and has now completed a reorganization by hiring investment and operations staff centered on CEO Shin Min-kyung.
JYP Partners is now accelerating capital raising. Without direct financial support from JYP Entertainment, it formed a consortium with SBI Investment KOREA to participate in the first regular commitment project under the Fund of Funds for culture (cultural technology). In the CT segment, which invests in corporations holding new technologies applicable to the cultural industry, the Ministry of Culture, Sports and Tourism will commit 60 billion won, and private capital will be matched to create a total pool of 100 billion won.
Of the total 100 billion won, 60% must be invested in small and midsize companies or projects producing cultural content using new technologies such as artificial intelligence (AI), big data, VR, and AR. The remaining 40% can be invested freely. Based on capital secured through the Fund of Funds, JYP Partners is said to be planning to consider investments in promising consumer-goods startups by using discretionary capital, in addition to its primary target of cultural technology corporations.
A JYP Partners official said, "We are still in the document review period and are waiting for the results to be announced."
In 2024, JYP Partners and JYP Entertainment invested 3 billion won and 2 billion won, respectively, in My Normal Company. The equity (5.13%) was acquired by JYP Entertainment.
Founded in 2018, My Normal Company grew through word of mouth among enthusiasts of a low-carbohydrate, high-fat diet. The company focuses on products such as the sugar substitute "allulose," low-sugar jams, chocolate balls, and snacks. It posted net profits of about 2.4 billion won in 2024 and about 1.1 billion won last year. It is one of three profit-making entities among the nine companies and funds in which JYP Entertainment made general and simple investments last year.
Behind JYP Partners' interest in consumer goods like those of My Normal Company as a new investment target appears to be the judgment that repeat purchases can secure a loyal customer base. It is also seen to have considered the potential brand expansion effect when combined with fandom.
A startup industry source said, "It is a strategy to secure a relatively predictable revenue structure instead of the entertainment industry, which has volatility." The person added, "Fandom tends to open their wallets easily for brands associated with artists. However, given that JYP Entertainment pursued no separate collaboration after acquiring equity in My Normal Company, it is uncertain whether it will carry out joint business with a new investment target."