Mother Fund 2021 1st Investment Project, 38 Funds Selected

Investment of 620 Billion KRW, Totaling 1.4224 Trillion KRW, to Foster Korean New Deal Venture Startups in Non-Face-to-Face and Digital Sectors

[Asia Economy Reporter Kim Jong-hwa] The Ministry of SMEs and Startups and Korea Venture Investment Corp. announced on the 8th that the selection for the 'Mother Fund 2021 1st Regular Investment Project' has been completed.

A total of 132 funds applied for the 1st regular investment project of 2021, and after review, 38 funds were finally selected. The Mother Fund will invest 620 billion KRW in the 38 selected funds, matched by approximately 800 billion KRW from private investors, creating a total fund size of about 1.4224 trillion KRW.

Despite the announcement being made about two months earlier than usual in December last year, the 1st regular investment project recorded a competition rate of 3.1:1. This indicates that last year's record venture boom is not a temporary phenomenon but a sign that a sustainable venture investment ecosystem is being established.

The venture funds selected this time will strive to be formed promptly by the first half of the year and will invest in areas such as the Korean New Deal, innovative growth, and sectors affected by COVID-19.

The 'Smart Korea Fund,' a symbol of the Korean New Deal, selected 700 billion KRW through the 1st regular investment project. By sector, 10 non-face-to-face funds received 375 billion KRW, one bio fund received 125 billion KRW, and five Green New Deal funds received 125 billion KRW. Additionally, four mentor company matching funds, where large corporations and unicorns participate as sponsors for junior companies, were selected with 75 billion KRW.

The Smart Korea Fund, totaling 2 trillion KRW including 1.3 trillion KRW raised last year and 700 billion KRW selected this time, will invest to enable innovative startups and venture companies to create jobs and secure global market leadership in the non-face-to-face, bio, and Green New Deal sectors. The selected funds will be promptly formed and investments will be actively made through individual venture capital firms.

Meanwhile, the 'Mother Fund 2021 2nd Regular Investment Project,' announced in February, is also accepting online applications until the 31st.

Yang Seung-wook, head of the Venture Investment Division at the Ministry of SMEs and Startups, said, "Despite reduced face-to-face opportunities due to COVID-19, thanks to the bold catalytic role of the Mother Fund, both venture fund formation and venture investment in 2020 recorded all-time highs, continuing the second venture boom." He added, "We expect that the venture funds selected through the Mother Fund 2021 investment project will actively invest to support the startup and job creation of innovative venture companies, which are key players in the Korean New Deal."