Korea Development Bank to Co-Support Startups with Private VCs...Invests in Two Digital Companies

"The Priming Role of New Deal Startups"

[Asia Economy Reporter Park Sun-mi] Industrial Bank of Korea announced on the 11th that it has launched the 'Startup Together Filling Rapid Investment Product' to support startups in the digital and green new deal sectors and will make its first investment.

This product is designed to allow Industrial Bank of Korea to invest up to 5 billion KRW per company in investments that have attracted at least two-thirds of the募集 amount from private venture capital (VC). For example, with a joint investment of 10 billion KRW from private VCs and 5 billion KRW from Industrial Bank of Korea, promising startups can secure substantial funding of 15 billion KRW.

Additionally, it features rapid investment based on the recognition of company valuations assessed by multiple private VCs, without valuation based on financial statements, relying solely on technology and business feasibility reviews. With the launch of this product, startups can drastically reduce the time required to raise investment funds while securing sufficient liquidity to focus on growth.

The companies selected for the first investment by Industrial Bank of Korea are two 'data companies' that will lead the digital new deal.

The first recipient, Motov, is a venture company that installs smart media devices in taxis to provide customized advertisements along with collecting, analyzing, and providing urban data on environment, safety, and traffic. With rapid investment for Motov, which had difficulties securing investment funds, the company can now secure various big data through business scale expansion, taking a step closer to building an urban space info-data platform.

The other investee, Jisokseongbaljeonso, is an innovative financial service company (designated by the Financial Services Commission) that analyzes and evaluates ESG (environment, social, governance) data using artificial intelligence (AI) and big data analysis technology. Through this investment, it is expected to complete securing commercialization funds and contribute to enhancing the ESG value of the domestic capital market.

Industrial Bank of Korea stated, “In addition to the equity-type rapid investment product (SAFE) launched for the first time in Korea last September, we have expanded the lineup of rapid investment products with the launch of this joint investment product between private and policy finance." "Based on the know-how accumulated from introducing advanced financial techniques, we will continue bold support for promising startups and, as a policy financial institution, work in harmony with the market to lead the growth of the domestic venture investment ecosystem.”

This content was produced with the assistance of AI translation services.