Saneun, Q3 Venture Index Up 55% YoY... "Rapid Activation of Korean Venture Ecosystem"

[Asia Economy Reporter Jin-ho Kim] The Korea Development Bank (KDB) announced on the 1st that the KDB Venture Index for the third quarter rose 54.8% year-on-year to 445.5, compared to 287.8 in the same period last year.

The KDB Venture Index was developed by KDB in 2018 to comprehensively monitor the domestic venture ecosystem. It is calculated by considering essential factors for venture company growth, including ▲sufficient investment resources ▲active new investments ▲stable exit conditions.

The third quarter KDB Venture Index increased approximately 4.5 times compared to the base year 2008 (100). Considering the current smooth inflow of new funds into the venture capital market, the KDB Venture Index is expected to maintain its upward trend for the time being.

By detailed sub-index, the Investment Resources Index increased the most, rising about 106% year-on-year to 677.4. In particular, the cumulative amount of newly formed investment associations in the third quarter of 2021 was 5.1305 trillion KRW, an increase of 2.4807 trillion KRW compared to the same period last year when association formation was somewhat sluggish due to the COVID-19 pandemic.

The Investment Performance Index rose about 51% year-on-year to 499.8. The Investment Performance Index is a lagging indicator of the Investment Resources Index and has been continuously rising recently. Notably, the cumulative new investment amount in the third quarter of 2021 surpassed 5 trillion KRW for the first time ever, reaching 5.2593 trillion KRW.

The Exit Conditions Index increased 7.46% year-on-year to 219.8. Considering that exits through IPOs on KOSDAQ for venture companies typically require an average period of over 10 years, a gradual increase is expected to continue for the time being.

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