Ministry of SMEs and Startups Establishes 22.5 Billion KRW 'Regional Angel Investment Fund of Funds'

Non-Capital Region Startup Seed Investment
"Expectations for Revitalizing Local Startup and Venture Ecosystems"

The government is establishing a 22.5 billion KRW 'Regional Angel Investment Fund of Funds' to activate early-stage investments in startups outside the Seoul metropolitan area.

The Ministry of SMEs and Startups announced on the 19th that it will create the Regional Angel Investment Fund of Funds, jointly funded by the Mother Fund (20 billion KRW) and local governments (2.5 billion KRW).

This is a mother fund that invests in private investment associations (sub-funds) formed for the purpose of investing in companies in non-metropolitan regions. It will invest up to 80% of the total committed amount of the sub-funds. For example, if a sub-fund of 1 billion KRW is created, up to 800 million KRW can be utilized from the Regional Angel Investment Fund of Funds.

The Regional Angel Investment Fund of Funds can be considered as seed money to discover and nurture promising regional companies. This is because the sub-funds receiving the investment are required to invest at least 60% of their total committed amount in companies located outside the Seoul metropolitan area.

Investors eligible to form private investment associations and receive investments from the Regional Angel Investment Fund of Funds must fall into one of the following categories: △ professional individual investors △ accelerators (startup planners) △ new technology startup specialized companies △ Creative Economy Innovation Centers △ industry-academia-research cooperation technology holding companies.

Lee Eun-cheong, Venture Policy Officer at the Ministry of SMEs and Startups, stated, "We expect the Regional Angel Investment Fund of Funds to promote investments in companies outside the Seoul metropolitan area and further revitalize the regional startup and venture ecosystem."

Proposals for this announcement will be accepted from 10 a.m. tomorrow (the 20th) until 2 p.m. on the 11th of next month. Detailed information can be found on the Korea Venture Investment Corp. website.

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