1st Generation VC Company Enters KOSDAQ
Expectations for Revaluation of Undervalued VC Industry
Top-Level Company Discovery Capability in the Industry
27x Returns from Baedal Minjok, etc.
Accumulated Operating Profit of 77.4 Billion KRW in Q3 This Year
[Asia Economy Reporter So-yeon Park] "With KTB Network's listing as a milestone, we hope the venture capital (VC) industry itself will be re-evaluated as an alternative investment sector that can satisfy both stability and profitability."
Kim Chang-gyu, CEO of KTB Network, recently met with Asia Economy at the company’s office in Bundang-gu, Seongnam City, and said, "As assets under management (AUM) grow, management stability increases, and at the same time, investment in promising companies across various fields becomes possible."
CEO Kim added, "I have felt many things before and after the listing, and I think the VC industry itself is undervalued. Going forward, we plan to actively serve as a communication channel with institutions such as pension funds and mutual aid associations regarding information, changes, and important events related to invested companies like startups."
KTB Network, which recently entered the KOSDAQ market, is a 1st generation domestic VC company with over 40 years of experience. Among its 24 fund management personnel, 11 investment officers have more than 10 years of investment experience. The company has grown significantly over the past four years since 2018. The accumulated operating profit through the third quarter of this year reached 77.4 billion KRW, far surpassing last year’s annual operating profit of 44.6 billion KRW.
CEO Kim said, "Personally, as my investment experience accumulates, I have been reflecting on the ‘partner spirit.’ Since unlisted investments involve long-term growth alongside invested companies through follow-up investments after the initial investment, the spirit of partnership?being together through good and bad times?is increasingly important." He continued, "In discovering companies, we fundamentally prioritize paradigm shifts expected in each industry sector, followed by the entrepreneurial spirit of the founders." While quantitative evaluations such as education and career are important, what experiences they have accumulated and what vision they hold for their business are the most crucial.
KTB Network is recognized for having top-level company discovery capabilities in the industry. Its performance supports this. It is the result of the meeting between KTB Network’s ‘partner spirit’ and startup CEOs’ ‘entrepreneurial spirit.’
In March, KTB Network earned 27 times returns from Baedal Minjok (Woowa Brothers). They invested 2.3 billion KRW and recovered 62.9 billion KRW. RBW, the agency of Mamamoo, which was listed on KOSDAQ this year, and Wantedlab, a recruitment platform company, also invested by KTB, each achieved returns of about 10 times the principal upon listing. They invested 5.6 billion KRW in the U.S. biotech company Berkeley Lights and earned 45.9 billion KRW.
More than 20 investment deals expected to realize profits over the next three years are currently pending. Toss (Viva Republica) was invested in when its corporate value was about 25 billion KRW, and its current official corporate value exceeds 8 trillion KRW. Expected returns from companies such as Njet (nanoprinter), PharmCAD (bio), and Neuromeka (collaborative robots) range from 4 to 12 times.
CEO Kim Chang-gyu said, "We plan to increase the proportion of overseas investments next year," adding, "We are particularly focusing on India and Southeast Asia." He noted, "These regions have attracted global VC funds in recent years. Since we maintain close collaborative relationships with major global VCs, deal reviews in these regions have naturally increased." Currently, overseas investments account for about 30% of KTB Network’s total investment, but they plan to increase this to over 40% by next year. They also plan to expand cooperation with domestic large corporations. CEO Kim said, "We have experience operating strategic funds with large companies such as LG Electronics, Naver, and SK Telecom," and added, "We aim to create various opportunities such as joint fund operations in the future."
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