Ministry of SMEs selects 5 sub-funds for 4th Mother Fund... Total scale of 400 billion KRW

Raised 295 Billion KRW for 'Scale-Up Fund' to Support Growth-Stage Companies' Leap

[Asia Economy Reporter Kim Jong-hwa] The Ministry of SMEs and Startups announced on the 30th that it has finally selected five funds for the 'Mother Fund 2021 4th Regular Investment Project,' with the Mother Fund investing 160 billion KRW and matching approximately 240 billion KRW from private investors, creating a total fund size of 400 billion KRW.

This investment project was conducted using the second supplementary budget allocated to overcome COVID-19, and the application results showed a high competition rate averaging 4.8:1, proving that the largest-ever venture boom continues.

The Ministry plans to invest 100 billion KRW from the Mother Fund into the 'Scale-up Fund,' aimed at nurturing innovative companies that have entered the growth stage into unicorn companies, thereby creating a total fund of 295 billion KRW.

The Scale-up Fund is currently being raised at about 250 billion KRW through the first regular investment project of the Mother Fund, and with the additional 295 billion KRW fund selected through this 4th regular investment project, the total fund size is expected to reach 545 billion KRW this year. This will concentrate large-scale capital on top-tier companies to support their leap into unicorn status.

The 'Youth Startup Fund,' which focuses on investing in young startup companies, will also be raised to a scale of 102.5 billion KRW.

The Mother Fund will invest 60 billion KRW to support startups by young people with innovative ideas. The Youth Startup Fund has attracted significant interest, with a competition rate reaching 7.9:1 during recruitment. The funds selected through this investment project are expected to be quickly finalized within the year and actively invested through individual venture capital firms.

Meanwhile, the 'Overseas VC Global Fund,' directly managed by Korea Venture Investment Corp., will also be additionally raised to about 200 billion KRW. The Mother Fund will invest 70 billion KRW to promote investment in domestic SMEs and startups by excellent overseas venture capitalists. The Overseas VC Global Fund closed its proposal submissions on the 23rd with a competition rate of 3:1, and the selection results will be announced by the end of November.

Yang Seung-wook, head of the Venture Investment Division at the Ministry of SMEs and Startups, said, "Venture investment until August this year has surpassed last year's record-high venture investment performance, and the heat of the second venture boom is intense," adding, "We will strive to ensure that the venture investment funds selected this time are promptly finalized and invested in innovative venture companies in a timely manner."

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