10 global funds selected for second round of overseas venture capital fund investment
Updated: 2021-11-30 11:05:47 KST
10 global funds worth a total of some 873 million U.S. dollars have been selected for the second round of this year's "overseas venture capital fund investment project."
The Ministry of SMEs and Startups announced on Monday that 23 overseas venture capitalists applied for the investment.
Due to the amount of applications, the chance of being selected for the fund is around 1 in 3.
A "global fund" means that it is invested in by the parent fund operated by an overseas venture capitalist and will then invest in domestic and foreign venture companies in the future.
Combining both the first and second rounds more than 1.9 billion U.S. dollars in global funds have been raised.
Those selected are required to invest in domestic venture startups, overseas subsidiaries, joint ventures, or overseas Korean startups.
This project first began in 2013 creating a total of 33 funds worth over 3 billion dollars.
Net foreign capital makes up nearly three-quarters of all funds.
Up until now, 672 million dollars has been invested into 380 domestic venture startups through global funds, which is twice the amount invested by the parent fund.
Of those companies, 51 have attracted follow-up investment from large overseas investors including Goldman Sachs.
And as a result of follow-up investment, domestic startups like Viva Republica and Zigbang have grown into "Unicorn companies" startups which have gone on to become worth more than one billion dollars.
Jang Tae-hyun, Arirang News.