[VC Now](20) "Young Entrepreneurs' Potential, ZDVC Sees It First"

Entrepreneurship, Failure, and Factory Work Experience...
"Firsthand Stories Shape Competitiveness"
"Focus on Korea's Strengths, Watch the Global Market"

Editor's NoteVenture capital (VC) nurtures early-stage companies that will become the pillars of future industries at the forefront of the capital market. Although the VC industry is experiencing a downturn due to the global economic recession and high interest rates, efforts to identify and cultivate promising companies continue unabated. Asia Economy meets a variety of investment firms, from large-scale VCs with accumulated experience and know-how to emerging VCs, to hear about their investment strategies and stories.

"They say that crazy people are next to crazy people. Young entrepreneurs in Korea are all connected within just one degree of separation. ZD Ventures (ZDVC)'s greatest weapon is that it can meet them first."

ZDVC is the "youngest" venture capital (VC) in Korea. Founded in 2023 by CEO Kim Ha-kyung (born 1999, age 26) and four other partners in their twenties who have long nurtured dreams of youth entrepreneurship, it has attracted attention. Major domestic startup founders and investors have participated as limited partners (LPs) in the fund, focusing on ZDVC's mission to revitalize youth entrepreneurship, resulting in a fund worth several billion won.

Kim Ha-kyung, CEO of ZDVC, is being interviewed by Asia Economy. Photo by Yoon Dong-joo

Currently, ZDVC's assets under management (AUM) stand at 1.6 billion KRW (based on the first fund closing), and it plans to complete fundraising for the second fund by May. The second fund has already secured commitments of 3 to 4 billion KRW, and ZDVC is set to become a startup and venture investment company with an AUM of approximately 5 billion KRW soon.

ZDVC positions itself not just as a simple investment firm but emphasizes its strength as a "young entrepreneur network." CEO Kim stressed, "It is important to understand the life, story, and childhood deficiencies of entrepreneurs, which cannot be grasped through just the investor relations (IR) process," adding, "The information gap gained through the young entrepreneur network we have built over time is ZDVC's strength."

Entrepreneurship, Failure, and Factory Worker Experience... "Stories Built Firsthand Determine Competitiveness"

Kim, a native of Jeonnam, first encountered the startup ecosystem while studying biotechnology at Korea University, where he enrolled as a 19-year-old after retaking the college entrance exam. He recalled, "On the first day of the 'Campus CEO' class, the professor explained the driving forces behind Silicon Valley's growth," and added, "I was deeply impressed by the 'zero to one' spirit of starting from scratch and the 'pay it forward' culture of giving back."

Later, Kim grew a software startup club into an entrepreneurship society and joined 'Founders,' a gathering of young domestic entrepreneurs, where he served as president. After taking a leave of absence in 2020, he fully entered the startup market and experienced two startups over about three years. He said, "I tried a platform business recommending fashion items by user type and a customized business card-based social networking service (SNS), but both failed to gain market traction and closed," emphasizing, "However, through this process, I considered over 20 business ideas and gained many insights." His 26-month experience working as a 'printing factory worker' under the military service special system also became a significant source of nourishment.

This experience proved to be a major competitive advantage during his VC internship. He said, "In my second month as an intern, I was offered to become the lead manager of a fund focusing intensively on young entrepreneurs," but "I politely declined because I wanted to create my own investment firm, and in 2023, I founded ZDVC."

Prominent senior entrepreneurs and investors have joined ZDVC as LPs. Notable figures include Lee Tae-yang, founder of Toss and CEO of Base Ventures; Lee Taek-kyung, founder of Daum and CEO of Mashup Ventures; Kim Byung-wan, former vice president of Market Kurly and co-founder of Cash Slide; Kwak Geun-bong, CEO of Wonji Labs; Park Kwang-yeon, CEO of Snow China; Shin Hyun-sung, founder of TMON; Kim Hwi-sang, director and co-founder of Hashed; and Kang Jun-yeol, partner at Base Ventures and former CSO of Kakao. Kim said, "Since ZDVC built the fund from the ground up without prior success experience, LPs have high expectations," adding, "Because it is unpredictable what possibilities we will show, there is much room for growth."

"Focus on Korea's Strengths and Watch the Global Market"

Kim Ha-kyung, CEO of ZDVC, is being interviewed by Asia Economy. Photo by Yoon Dong-ju

Regarding fund strategy, CEO Kim said, "We want to create a new startup ecosystem culture in Korea," and "Our principle is to invest in the most outstanding and young entrepreneurs of our generation." He added, "We look for 'Made in Korea' brands in sectors where Korea has competitiveness. Recently, global entrepreneurs have been paying attention to Korea's startup market in areas such as K-pop, content, entertainment, beauty, and fashion," emphasizing, "It is important to invest in sectors where we excel first so that they can be recognized more quickly in the global market."

Companies with 'global' success potential are also key investment targets. He explained, "The market must be large, and we look at whether it has significant upside globally," adding, "It is also important to check if startups have ideas and execution capabilities to solve inefficiencies in established areas that startups have not yet challenged."

Meanwhile, ZDVC's portfolio has grown to six startups, two of which are U.S. companies. The investment size ranges from 50 million to 150 million KRW per startup. Notably, ZDVC recently made a seed round investment in 'ShieldPay,' a U.S.-based stablecoin (virtual asset) B2B payment and finance startup backed by major overseas VCs such as Andreessen Horowitz (a16z), Kraken Ventures, Alchemy Ventures, and Bessemer Ventures.

ZDVC also made a pre-seed investment in 'WaveAI,' a U.S. startup founded by Grammy Award winner Ivan Linn. WaveAI leads AI music generation technology, providing AI-based music creation and intellectual property protection solutions primarily for advertising, gaming, media, and entertainment industries. Its music generation method records actual performance data, which is advantageous in avoiding copyright issues.

CEO Kim concluded, "Our greatest strength is investing with a fresh perspective that is not bound by traditional conventions and having unlimited growth potential," adding, "We will open a new chapter in Korea's startup ecosystem together with young entrepreneurs."