On the 14th, early-stage venture capital Kakao Ventures announced its investment trends for 2024 and its investment direction for the new year.
The total number of investments in 2024 is 21, amounting to 14 billion won. New investments were made in approximately 12 billion won across 16 locations in the fields of services (6 cases), deep tech (4 cases), digital healthcare (3 cases), and games (3 cases). In the service sector, attention was focused on teams addressing social changes and demands based on ICT, such as a platform for job training across generations and a virtual idol production company. In deep tech, investments were made in teams possessing AI scalability, including AI agents and semiconductor companies. Digital healthcare targeted areas such as robotics and medical equipment, while the gaming sector invested in emerging growth engines like subcultures and casual games.
Among the new investments, Kakao Ventures was the first institutional investor in 14 companies. In terms of investment stages, seed funding accounted for the majority, comprising 14 cases, while pre-Series A and Series A each had one case. Amid a frozen market environment where venture capital investments are sharply declining, Kakao Ventures has continued new and follow-up investments, solidifying its position as a specialized early-stage venture capital firm.
Kakao Ventures also actively promoted its strategic direction for 2024, titled Insightful VC, along with global-related activities. In an environment where AI is rapidly penetrating industries and daily life, it converted the preparatory process for capturing newly emerging technological and social changes into content and shared it in the investment ecosystem. Last November, it held the 'KV Insightful Day' online session, raising key issues regarding future growth.
It also established a researcher network in the United States. Representative examples include semiconductor technology company FS2, composed of a Massachusetts Institute of Technology (MIT) research team, U.S.-based medtech company Kompass, and robot surgery company Magnendo, centered on MIT and Harvard research teams. The company noted that it not only made direct investments in startups targeting the global market but also laid the groundwork for full-fledged investment activities in the future.
Following the investment, it supported the unwavering growth of its corporations through various follow-up support such as recruitment, promotion, and software assistance. By introducing community-based small family days, it facilitated close communication between investment managers and the corporations, strengthening ties among them. Chief Executive Officer Kim Tae-ho, who experienced an exit in Silicon Valley and worked as the head of the core sector of the carrot service, joined as an entrepreneur in residence, providing tailored consulting to the corporations, garnering a positive response.
Despite concerns about an investment freeze and ecosystem contraction, it has produced unicorn startups and publicly listed corporations. Rebellion, which is opening up new possibilities in AI semiconductors, has been recognized with a corporate value of 1 trillion won, joining the ranks of unicorns. SHIFT UP, a subculture-focused game development company, successfully landed on the KOSPI market. These two companies were among those where Kakao Ventures was the first institutional investor and conducted follow-up investments.
This year, it plans to aggressively invest in early-stage startups in major investment areas like ICT services, deep tech, digital healthcare, and gaming. Investment targets include the entire range of software, hardware, materials, and processes needed to accelerate the development of AI, as well as services and robotics where rapid advancements are being made through AI technology application. It will also focus on enterprise sector startups finding new opportunities through AX (AI transformation) in industries where AI has not yet been introduced and on next-generation core technologies that have emerged, such as quantum computing, small modular reactors (SMR), and space-related areas.
Based on its 100 billion won recovery performance last year, Kakao Ventures aims to strengthen the virtuous cycle structure of venture capital that spans from investment to value-up, exit, and fund formation. It will also enhance the two directions of Insightful and global that have continued since last year. The plan includes sustaining various attempts that add vitality to the investment ecosystem, such as diversifying pathways for discovering and spreading future growth keywords, as well as ongoing activities to establish a foothold in the U.S. market.
Kim Ki-jun, CEO of Kakao Ventures, noted, "It was a year where we created a necessary future with startup teams possessing innovative technology and a spirit of challenge, even in a difficult investment environment." He added, "This year, we will do our best to discover startups that break down the boundaries of technology and industry and stand out on the global stage," and stated, "We will actively support entrepreneurs to achieve solid growth and lead the virtuous cycle of the investment ecosystem."