Naver D2SF Startup Investment 6 Years... 70 Companies Grow to 1.3 Trillion Won in Valuation

[Asia Economy Reporter Kang Nahum] Naver's startup nurturing organization D2SF has seen the corporate value of the 70 startups it invested in over the past six years grow approximately sixfold to 1.3 trillion KRW. Naver plans to continue its support by creating a dedicated space for startups in its second headquarters, scheduled for completion this year.

◆ Discovering and Supporting Early-Stage Technology Startups = At the 'NAVER Meetup' press conference held on the 8th, D2SF announced its investment achievements and future plans for supporting startups. Yang Sanghwan, leader of D2SF, said, "Over the past six years, D2SF has guided technology startups to grow in collaboration with Naver, establishing itself as the investor and partner that best understands technology startups. Especially through rigorous technical verification by Naver's operational teams and active exchanges, technology startups have quickly proven their value and gained recognition for their growth potential."

Naver D2SF has invested in 70 startups over the past six years, with a total investment amount reaching 40 billion KRW. Most of these startups are early-stage technology startups that have just been founded or are on the verge of founding. The investment has focused more on the potential of having excellent technology and how they can create synergy and grow with Naver's services rather than immediate business feasibility.

In fact, 80% of these startups operate in the B2B sector, which typically takes a long time to generate stable revenue, yet they show a 99% survival rate and a 70% success rate in securing follow-up investments. The total corporate value of the 70 startups has grown about sixfold from before the investment to 1.3 trillion KRW.

Baek Junho, CEO of PuriosaAI, which recently secured an investment worth approximately 80 billion KRW, praised, "Back in 2017, when we had not even established a corporation, Naver D2SF was the only investor who empathized with our vision and supported us. They are partners who truly understand the value of technology and the difficulties faced by technology startups."

◆ Strong Technology Synergy Effects = D2SF positions itself not just as a simple investor but as a 'coordinator' connecting technology startups with various Naver organizations and other startups to enable practical growth. According to a survey conducted by D2SF last year targeting 818 startups, the top expectation from D2SF was 'exchange and cooperation with Naver.'

Over the past six years, more than 670 startups have interacted directly or indirectly with various organizations within Naver through D2SF. For example, Morai, an autonomous driving startup that secured D2SF investment shortly after its founding, built an autonomous driving simulator using data from Naver Labs, which Naver Labs then utilized to enhance its autonomous driving system installed in ALT.

Leader Yang explained, "71% of startups that received investment from D2SF have succeeded in finding points of contact with Naver and are discussing concrete cooperation. We have consistently created opportunities for exchanges between startups and various Naver technology and service organizations, which have led to tangible results through actual collaboration."

There are also cases where exchanges between Naver and startups have led to M&A. Representative examples include CompanyAI, an AI chatbot modeling startup acquired by Naver in 2017; BuzzMusic, acquired by Snow in 2019; and V.do, a startup acquired by Naver Webtoon last year. For domestic technology startups, where M&A cases are rare, this represents a new growth opportunity.

◆ Dedicated Startup Space in the Second Headquarters = Naver plans to continue its support by preparing a dedicated space for startups on one floor of its second headquarters, scheduled for completion within the year.

This space will be designed under the concept of a 'Collaboratory,' referring to a group of laboratories located in different regions but connected through a network for joint projects. It symbolizes a space where Naver and startups break down walls and grow together.

Leader Yang said, "In the world's first robot-friendly building, we expect that both parties will stimulate each other and face greater growth opportunities. We look forward to new innovations and changes that will arise from deeper exchanges between Naver and startups in the second headquarters."