Motae Fund First Regular Investment... Venture Funds Total Over 1.3 Trillion Won Raised

Announcement of the 2022 First Round of Motefund Investment Selection Results

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung, hereinafter referred to as the Ministry) and Korea Venture Investment Corp. (CEO Lee Young-min) announced on the 3rd that they have finalized the selection of venture funds worth 1.3 trillion KRW through the '2022 1st Regular Investment of the Mother Fund' worth approximately 370 billion KRW.

A total of 81 funds applied for this 1st regular investment project, and after a review process, a total of 28 funds were selected. The finally selected funds will be raised to a total of 1.3181 trillion KRW, combining the Mother Fund investment of 370 billion KRW with approximately 948.1 billion KRW in private investments. The scale of this 1st regular fundraising is about 1.3 times the original target amount of 1 trillion KRW.

This 1st regular investment, announced in December last year, reflects the intention to continue the growth trend of venture investment through the rapid formation of venture funds. The investment industry also showed high interest in forming venture funds, with the competition rate based on investment amount exceeding last year's level of 3.1 to 1, reaching about 3.45 to 1.

Looking at the selection results by sector, the 'Smart Korea Fund,' a Korean New Deal dedicated fund, amounts to about 800 billion KRW (17 funds). This is approximately 200 billion KRW more than the original target. By sector, Green New Deal funds total 170 billion KRW (2 funds), Vaccine & Bio 117 billion KRW (2 funds), and Non-face-to-face 300 billion KRW (3 funds). The mentor company matching investment sector, where large corporations and unicorn companies participate as sponsors for junior companies, raised 207.28 billion KRW (10 funds).

The 'Scale-up Fund,' aimed at expanding growth-stage investments for innovative startups and venture companies, was selected at a total of 300 billion KRW (2 funds), 100 billion KRW more than the original target. Through the 'Scale-up Fund,' which focuses on large-scale investments averaging over 5 billion KRW per company, efforts will be made to create an ecosystem for the birth of new unicorn companies.

The 'Youth Startup Fund,' supporting startups led by young people who will lead the future startup and venture ecosystem, was selected at a total of 110 billion KRW (4 funds). The 'Materials, Parts, and Equipment Fund,' which focuses on investing in excellent companies in the materials, parts, and equipment sector, was selected at a total of 113.83 billion KRW (5 funds) and will focus on investing in strong small and medium enterprises and startups with excellent technology and high future growth potential.

Yang Seung-wook, head of the Venture Investment Division at the Ministry, said, "Last year was the first time in history that venture investment reached 7 trillion KRW, and it was also the year with the most unicorn companies ever. The background that clearly showed the second venture boom was the activation of the private venture investment ecosystem, supported by the catalytic role of the Mother Fund," adding, "this year as well, venture funds raised through Mother Fund investments are expected to smoothly supply the necessary investment resources for the birth and growth of innovative startups and venture companies."

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