Naver D2SF Creates Synergy with 'Content·Commerce' Investments
Kakao Ventures Focuses on 'Digital Healthcare'
[Asia Economy Reporter Yuri Choi] Amid significantly deteriorating investment conditions due to high inflation, high exchange rates, and high interest rates, Naver and Kakao are increasing their investments in startups compared to last year. Naver focused on the content and commerce sectors, while Kakao concentrated its investments in the digital healthcare sector. Although the past atmosphere was 'invest first,' they are now finding investment opportunities by carefully selecting solid companies.
According to the IT industry on the 26th, Naver's startup nurturing organization 'D2SF (D2 Startup Factory)' invested in 20 companies from the beginning of this year until August. There were 14 new investments and 6 follow-up investments, maintaining the same level as the previous year. Kakao's startup investment specialist company, Kakao Ventures, conducted 33 investments (25 new, 8 follow-up), surpassing last year's total of 30 investments. Naver concentrated 40% of its total investments on content and commerce, while Kakao had the highest proportion in digital healthcare at 44%.
This contrasts with the freezing startup investment market due to worsening investment sentiment and sluggish domestic markets. As corporate values are being realized, it is explained that they continue to extend love calls, seeing it as an opportunity to invest in competitive startups.
Naver Aims for Double-Digit Growth in Content and Commerce
D2SF's focus on content and commerce aligns with Naver's growth strategy. Startups that can create synergy with Naver's existing businesses in these two sectors are the main investment targets. Naver CEO Suyeon Choi stated during the Q2 earnings conference call that they plan to boost profits in the content and commerce divisions to continue double-digit growth.
'Modehouse' and 'N.Dot.Light' are newly invested companies aimed at synergy with Naver's metaverse platform 'Zepeto.' Modehouse is an NFT and blockchain-based content company developing a platform where fans can participate in the artist production process, from trainee selection to concept planning. N.Dot.Light offers a high-quality 3D content production solution called 'N.Dot.CAD.' It encourages fan community participation and lowers content production hurdles, making it highly useful on metaverse platforms.
Kakao Focuses Investment on Medical Sector Platforms
Kakao Ventures concentrated its investments in the digital healthcare sector. This includes the pill counting app developer 'Medility,' precision medical imaging solution 'Floyd,' medical data platform 'J&P Medi,' and non-face-to-face medical consultation and medicine delivery platform 'Medup,' spanning both B2B (business-to-business) and B2C (business-to-consumer) transactions.
Unlike strategic investor (SI) Naver D2SF, Kakao Ventures, as a financial investor (FI), focuses on the growth potential of startups themselves. To this end, they recruited Kim Chi-won, director of Seoul Wise Rehabilitation Hospital and a digital healthcare expert, as a partner and screening officer (executive director) last year, and this year added screening officer Joo-yeon Jung, a resident from Seoul National University Hospital.
A Kakao Ventures official said, "Even during the investment winter, we are actively discovering promising companies from a long-term perspective," adding, "Many digital healthcare companies are going public in the U.S., entering the mainstream market, and the sector is also gaining attention as a future growth engine in Korea."
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