Venture Investments

 

It is expected that annual venture investments in Korea will reach the highest level in history this year with the amount reaching one trillion won (US$947 million) in the first three quarters. The size is likely to grow further as venture capitalists, which invested mainly in growth-stage firms, are increasing their investment in other companies, and more and more venture associations are organized these days. 

According to the Disclosure Information of Venture Capital Analysis, a total of 39 venture capital firms invested 79.3 billion won (US$75.1 million) in 66 companies in September. Cumulative venture investments reached 981.8 billion won (US$929.8 million) by the end of last month. It is 5.4% or 50.3 billion won (US$47.6 million) larger when compared to the same period last year, and 1.65% or 15.9 billion won (US$15.1 million) larger than the third quarter total of 2011, which was the previous record high.

“We predicted that the monthly total for September would reach at least 100 billion won, like in the preceding five months, but it turned out to be slightly short of the target due to the long holiday season,” said the Korea Venture Capital Association, adding, “However, we anticipate that the investment will be expanded in the remaining quarter of this year because a lot of new associations have been set up.”

The amount of investment by the associations newly set up until last year runs to 950.6 billion won (US$900 million), much higher than the 747.7 billion won (US$708 million) from a year ago. The amount is likely to exceed one trillion won once the Growth Ladder Fund worth 300 billion won (US$284.1 million) and the Future Creation Fund worth 600 billion won (US$568.2 million) get on track late this month.

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