Naver D2SF Startup Investment 6 Years... 70 Companies Grow to 1.3 Trillion KRW in Valuation (Comprehensive)

[Asia Economy Reporter Kang Nahum] Naver's startup nurturing organization D2SF has seen the corporate value of the 70 startups it invested in over the past six years grow approximately sixfold to 1.3 trillion KRW. Naver plans to further expand its startup investments, including M&A activities. In particular, it intends to continue support by creating a dedicated space for startups in its second headquarters, scheduled for completion this year.

◆ Discovering and Supporting Early-Stage Technology Startups = At the press briefing 'NAVER Meetup' held on the 8th, D2SF announced its investment achievements and future startup support plans. Yang Sanghwan, leader of D2SF, said, "Over the past six years, D2SF has guided technology startups to grow in collaboration with Naver and has established itself as an investor and partner who best understands technology startups. Especially through rigorous technical verification by Naver's operational teams and active exchanges, technology startups have quickly proven their value and gained recognition for their growth potential."

Over the past six years, Naver D2SF has invested in 70 startups, with a total investment amount reaching 40 billion KRW. Most of these are early-stage technology startups that have just been founded or are on the verge of founding. The investment has focused more on the potential of how excellent their technology is and how they can create synergy and grow with Naver's services rather than immediate business feasibility.

In fact, 80% of these startups operate in the B2B sector, which typically takes a long time to generate stable revenue, yet they show a 99% survival rate and a 70% success rate in securing follow-up investments. The total corporate value of the 70 startups has grown about sixfold compared to before investment, reaching 1.3 trillion KRW.

Baek Junho, CEO of FuriosaAI, which recently secured an investment worth approximately 80 billion KRW, praised, "Back in 2017, when we had not even established a corporation, Naver D2SF was the only investor who resonated with our vision and supported us. They are partners who truly understand the value of technology and the challenges faced by technology startups."

Leader Yang revealed D2SF's future investment direction and vision that day. He said, "This year, we are investing at a faster pace than last year. We expect to invest in a similar or greater number of technology startups compared to last year."

He added, "Since the amount varies for each startup we invest in, I cannot specify exactly, but we believe that follow-up investments in startups initially invested by Naver send an important message to the market, so we are aggressively pursuing follow-up investments."

He continued, "The biggest strength of D2SF is that it has formed a community exclusively for technology startups that cannot be found anywhere else. They can use Naver's technology, assets, and business as references and footholds for their own business," he added.

◆ Strong Technology Synergy Effects = D2SF positions itself not just as a simple investor but as a 'coordinator' connecting technology startups with various Naver organizations and other startups to enable practical growth. According to a survey conducted by D2SF last year targeting 818 startups, the top expectation from D2SF was 'exchange and cooperation with Naver.'

Over the past six years, more than 670 startups have interacted directly or indirectly with various organizations within Naver through D2SF. For example, Morai, an autonomous driving startup that secured D2SF investment shortly after its founding, built an autonomous driving simulator using data from Naver Labs, which Naver Labs then used to enhance its autonomous driving system installed in ALT.

Leader Yang explained, "71% of startups that received investment from D2SF have successfully found points of contact with Naver and are discussing concrete cooperation. We have consistently created opportunities for exchanges between startups and various Naver technology and service organizations, which have led to tangible results through actual collaboration."

There have also been cases where exchanges between Naver and startups led to M&A. Representative examples include CompanyAI, an AI chatbot modeling startup acquired by Naver in 2017; BuzzMusic, acquired by Snow in 2019; and V.do, a startup acquired by Naver Webtoon last year. For domestic technology startups, where M&A cases are rare, this has created new growth opportunities.

Regarding M&A strategy, Leader Yang said, "There is a strong demand in areas where Naver is focusing, such as shopping and webtoons. Since there are many assets and capabilities we do not yet have, we expect active progress in those areas."

He explained, "We consider M&A from the time of investment. It is reasonable to view every team as a potential M&A target. Rather than just investing capital and leaving them to grow on their own, we think about when and under what conditions we would proceed with M&A."

◆ Dedicated Startup Space in the Second Headquarters = Naver plans to continue support by preparing a dedicated space for startups occupying one floor in its second headquarters, scheduled for completion within the year.

This space will be designed under the concept of a 'Collaboratory,' referring to a group of laboratories located in different regions but connected through a network for joint projects. It symbolizes Naver and startups breaking down walls and growing together.

Leader Yang explained, "Technologies like robotics, autonomous driving, and artificial intelligence will be integrated throughout the building. Startups will use this space as a testbed."

He added, "Startups will reside there for a certain period, and the space can comfortably accommodate dozens of teams. It is suitable for teams at the pre-startup stage that can use the space as a testbed and receive direct support from Naver's resources and human capital."

He said, "In the world's first robot-friendly building, everyone will inspire each other and face greater growth opportunities. We look forward to new innovations and changes that will emerge from deeper exchanges between Naver and startups in the second headquarters."

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