Completion of the Mother Fund Formation in 5 Months... Record for the Shortest Period Ever

Rookie League 228.3 Billion KRW and Scale-up 187.7 Billion KRW
Total Venture Fund Formation of 908.2 Billion KRW

This year, the formation of the Korea Fund of Funds (KFoF) was completed in just five months, marking the shortest period ever recorded.

Photo by Ministry of SMEs and Startups

The Ministry of SMEs and Startups announced on the 2nd that all 43 funds selected in the "2024 KFoF 1st Regular" investment project were formed within five months.

This is confirmed to be the shortest period in history. Previously, the time taken for all funds selected in the KFoF investment projects to be formed was about nine months. The periods required for all funds to be formed after selection in the KFoF investment projects were nine months in 2019, nine months in 2020, nine months in 2021, ten months in 2022, and ten months last year.

Although the funds were formed quickly, the performance in raising private capital was at a satisfactory level. Approximately 120 billion KRW, which is 16% of the initial target amount of 783.5 billion KRW, was additionally raised, resulting in a total venture fund size of 908.2 billion KRW.

By sector, 228.3 billion KRW was raised for the "Rookie League," dedicated to new and small venture capitalists (VCs); 187.7 billion KRW for the "Scale-up" fund supporting the scale-up of ventures and startups; 160.5 billion KRW for the "Early Startup" fund investing in companies within three years of establishment; and 79.1 billion KRW for "Youth Entrepreneurship." The Ministry of SMEs and Startups plans to promptly supply investment funds to ventures and startups through the formed funds.

Minister Oh Young-joo of the Ministry of SMEs and Startups said, "As a result of improving the system to expedite the KFoF investment projects, funds were formed at the fastest pace ever," adding, "The KFoF will continue to play a catalytic role to become a momentum for the recovery of venture investment."

The Ministry plans to announce the "(tentative) Venture Investment Activation Plan," which includes the mid- to long-term operational strategy for the KFoF, within the second half of the year. The KFoF will mark its 20th anniversary next year.