Shinbo Launches Crowd-funding Investment Support to Aid Promising Startups

Wadiz and Crowdfunding Investment Support Sign Business Agreement

[Asia Economy Reporter Park Sun-mi] The Korea Credit Guarantee Fund (KODIT) announced on the 21st that it has signed a business agreement with the Wadiz platform to support investment in equity-type crowdfunding for promising startup companies' innovative growth.

This agreement was established as part of the "Crowdfunding Development Plan" announced by the Financial Services Commission in June, aiming to help early-stage startups smoothly raise funds through crowdfunding and achieve sustainable growth.

According to this agreement, if a company participating in equity-type crowdfunding pre-approved by KODIT achieves more than 30% of the planned fundraising amount, KODIT can support investment for the remaining amount upon Wadiz's request.

Additionally, both organizations agreed to mutually recommend companies recognized for their technological capabilities and growth potential, and to strengthen post-management of successful crowdfunding companies to protect the rights of general investors.

KODIT has discovered early-stage startups with high growth potential but marginalized in the private investment market and has invested more than 300 billion KRW in a total of 400 companies to date. Among them, 144 companies have attracted follow-up investments of 577.7 billion KRW, playing a catalytic role in the private investment market.

Meanwhile, Wadiz, as Korea's first online small investment brokerage, accounts for about 80% or more of the fundraising amount in equity-type crowdfunding annually. So far, companies successful in Wadiz funding have attracted follow-up investments exceeding 160 billion KRW from institutional investors.

A KODIT official said, "This agreement between the two organizations will further solidify crowdfunding's role as venture capital supporting the growth of innovative companies," adding, "KODIT will continue to do its best to support innovative growth companies and foster the startup ecosystem."