Formation of 'Seoul National University STH GwanakS Valley Venture Investment Association' on the 1st... Supporting stable growth of local companies by investing over 50% of the fund in small and medium venture businesses located in Gwanak-gu
Gwanak-gu (District Mayor Park Jun-hee) established the second Gwanak S Valley corporate support fund, the ‘Seoul National University STH Gwanak S Valley Venture Investment Association,’ on the 1st.
In September 2020, the district created a fund worth 20 billion KRW, the first of its kind among autonomous districts, and invested more than 200% of the district’s contribution in venture startup companies located in Gwanak-gu. The first fund was established to drive the continuous growth of venture startups based on original technology within the region and will be operated until September 2028.
The district focused the first fund’s investments on information and communication, bio-health care, and edutech companies, enabling these companies to achieve technology demonstration and service launching successes. The asset valuation exceeds 110% of the invested principal, showing outstanding performance in both investment scale and results.
In addition, Gwanak-gu is accelerating support for the growth of venture startups by establishing the second fund, the ‘Seoul National University STH Gwanak S Valley Venture Investment Association,’ managed by Seoul National University Technology Holdings, with a scale of 5.9 billion KRW.
The district is also considering expanding the fund size up to 10 billion KRW by having Seoul National University, large corporations, and others participate as additional investors after the fund’s establishment.
This second fund is expected to foster a startup-friendly environment and drive the growth of early-stage startups, which have been relatively neglected, by investing more than 60% of the investment amount in them. In particular, more than 50% of the fund will be invested in companies located in Gwanak-gu to promote the stable growth of venture startups in the region.
Along with this, the district plans to inject new vitality into the venture investment market, which has been shrinking due to worsening domestic and international economic conditions such as high interest rates and inflation, by investing in technology-knowledge-based small and medium venture companies within seven years of establishment.
District Mayor Park Jun-hee said, “Due to the global economic slowdown, both venture investment and fund formation have declined, making it necessary for early-stage companies to secure growth capital,” adding, “We hope that the establishment of the Gwanak S Valley Fund will provide some help to early startups with excellent technology and potential.”
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