Total Commitment 15 Billion KRW, 8-Year Maturity, 3% IRR
Parent Company MobileLeader and Motefund Funding Secured
Focus on IT and Mobile Investments
[Asia Economy Reporter Kwangho Lee] Venture capital (VC) Root Ventures has secured more ample capital by independently raising a blind fund (a fund without specific investment targets) following its Co-GP (Co-General Partner) fund. Attention is focused on its future investment moves.
According to the investment banking (IB) industry on the 11th, Root Ventures recently held the general meeting to establish the ‘Smart Root ML Fund.’ It is a blind fund worth 15 billion KRW. The term is 8 years, with a target internal rate of return (IRR) set at 3%. The lead fund manager is CEO Jeong Boyoung. The anchor limited partner (LP) is the Korea Venture Investment Corp’s mother fund.
Previously, Root Ventures submitted a proposal to the ‘Smart Korea Mentor Company Matching Investment’ in the first regular call for mother fund investment in 2022 and secured the position of entrusted operator (GP). It secured 4.5 billion KRW of mother fund capital and was matched with MobileLeader, a developer of non-face-to-face identity verification solutions, receiving a total of 10 billion KRW in funds.
MobileLeader, a KOSDAQ-listed company, is the largest shareholder of Root Ventures. Root Ventures relatively safely gathered funds from its parent company and the mother fund through this investment project.
Currently, it is in the stage of scouting investment targets. It plans to make its maiden investment soon. Before raising the fund, Root Ventures also made investments from its main account, securing 10 portfolio companies. The establishment of this fund has broadened its operational scope. It plans to execute investments over more than a year and deplete the fund resources.
A Root Ventures official said, “This is the largest fund raised since the company’s establishment,” adding, “Through this fund, we will discover early-stage companies in the information technology (IT) and mobile service sectors.”
Root Ventures is a venture capital firm established in September 2021. CEO Jeong Boyoung and team leader Oh Byungseop are active as investment personnel. The firm plans to focus on promising startups at the early stage to build its presence.
Currently, it also holds two Co-GP funds. It jointly operates the ‘AN Root Venture Investment Association (11.2 billion KRW)’ with AN Partners and the ‘Root S&S Venture Investment Association (5.3 billion KRW)’ with S&S Investment. The total assets under management (AUM) amount to 31.5 billion KRW.
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