VC 41% "Next Year's Venture Investment Market Positive"

Korea Venture Investment Publishes First VC Trend Report

[Asia Economy Reporter Kim Cheol-hyun] More than 40% of venture capitalists (VCs) have a positive outlook on the venture investment market in 2022, according to a survey. On the 23rd, Korea Venture Investment (CEO Lee Young-min) announced this in the 'VC Trend Report,' which analyzed VCs' perceptions and forecasts of the venture investment market.

This report was published to periodically monitor changes in venture investment trends among domestic VCs, the main pillars of the venture investment ecosystem. It consists of venture investment market perception and outlook, investment industry trends and forecasts, investment method trends, and company analysis trends. The report was based on the results of a survey conducted over 15 days in July, with 401 VCs participating.

For the 2022 venture investment market, 41% of respondents had a positive outlook, and 36.4% expected it to be similar to this year. The main reasons for this evaluation included abundant capital liquidity, quick exit opportunities due to the revitalization of the recovery market, and qualitative growth of startup companies.

VC investments over the past year have focused on the bio, healthcare, and ICT service sectors, and this trend is expected to continue. Among these, there was particular interest in companies related to artificial intelligence (AI), new drug development, metaverse, and digital healthcare.

Additionally, when judging the investment value of companies, VCs mainly considered competitive advantage and the possibility of going public, while in investment review meetings, they placed importance on the CEO and the market and industry group to which the company belongs. At the early investment stage, many viewed the passion and teamwork of the CEO and the operational team as key competencies.

CEO Lee Young-min said, "Despite increased investment risks due to COVID-19, investment in venture companies has rather become more active," adding, "We will contribute to creating a market-friendly venture investment environment through active communication with VCs."

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