[VC Now](21) The Ventures: "Korean Teams Have Global Competitiveness in Consumer Goods"

Kim Cheolwoo, CEO of The Ventures, Interview
"Our identity is 'founders helping founders'"
"Crisis as opportunity... A time when founder capabilities matter more than ever"

Editor's NoteVenture capital (VC) firms are nurturing early-stage companies that will become the backbone of future industries at the forefront of the capital markets. Although the VC industry has experienced a downturn due to the global economic recession and high interest rates, efforts to identify and foster promising companies remain relentless. Asia Economy meets with a variety of investment firms, from large, established VCs to newly founded ones, to hear about their investment strategies and stories.

"There is a consensus that both founders and venture capitalists (VCs) must go global, but I believe we first need to consider what kind of business can leverage the advantage of being a 'Korean team' at this point." (Kim Cheolwoo, CEO of The Ventures)

Recently, discussions about 'global expansion' have been heating up in the startup and venture ecosystem. The rationale is that startups with global competitiveness from the outset are more likely to survive domestically, and that going abroad attracts larger investments. However, even among VCs, opinions are divided when it comes to concrete strategies.

On April 22, at The Ventures' office in Seongsu-dong, Seongdong-gu, Seoul, CEO Kim said, "I considered what types of businesses could benefit from being Korean, and concluded that the answer is 'consumer goods.' That's why we have expanded our investments in consumer goods since the end of last year."

He continued, "Large funds in the United States are so interested in Korean consumer goods and beauty sectors that they are proactively requesting deals. They even ask what is trending in Korea," and added, "Global funds see competitiveness in the Korean consumer goods sector and are actively seeking deals."

"I am also a founder... I understand startup concerns better than anyone"

Kim Cheolwoo, CEO of The Ventures, is being interviewed by Asia Economy at his office in Seongdong-gu, Seoul. Photo by Jo Yongjun

CEO Kim is a VC who comes from a founder background. Together with Kim Daehyun, now a partner at The Ventures whom he met in college, he co-founded the secondhand goods trading platform 'Sellit' in 2014. Sellit was acquired by Kakao Investment in 2014 and later merged with Bungaejangter in 2017. At Bungaejangter, Partner Kim served as Chief Commerce Officer, while CEO Kim worked as Chief Product Officer.

Their transition to leading startup investments at The Ventures, which was an early investor in Sellit, began in 2020. CEO Kim said, "When we completed the sale of our shares in Bungaejangter at the end of 2019, I was still in my 30s. In the United States, it is common for founders to return to the VC that invested in them and become investors themselves, but this is rare in Korea. As a VC with a founder background, I decided I wanted to provide practical help to younger founders."

The Ventures started as an accelerator (AC) in 2014 and acquired VC qualifications in 2021. To date, it has invested in 252 companies, with notable early investment successes including PRND Company, the operator of 'HeyDealer,' and Brain Commerce, the operator of 'JobPlanet.' The firm currently manages four funds: Impact Collective Korea Fund, Founders Community Fund, a Vietnam-dedicated fund, and others, with assets under management (AUM) totaling approximately 42 billion KRW.

The area drawing particular attention recently is consumer goods. Examples of consumer goods startup investments include 'Geem,' which reinterprets Korean seaweed as a snack tailored to American and European tastes, and 'The Plug Drink,' which has evolved hangover relief products into liver health supplements. CEO Kim explained, "There is now a widespread recognition among founders and investors that startups must target the global market from the very beginning. The consumer goods sector is where the Korean identity is actually a strength. While American VCs are not yet showing significant interest in the Korean artificial intelligence (AI) sector, they are enthusiastic about consumer goods brands and products like Geem and snacks."

The Ventures' global network is also being actively leveraged for its global strategy. Currently, The Ventures invests in startups across 12 countries, including Korea. CEO Kim said, "Our key partners are based in locations such as Vietnam, Singapore, and the United States, communicating directly with local startups and VCs. In particular, Partner Kim is living in Vietnam with his family and is closely engaged with local startups. This authentic global network is The Ventures' competitive edge."

"Aggressive investments will continue this year... We will focus even more on founder capabilities"

Kim Cheolwoo, CEO of The Ventures, is being interviewed by Asia Economy at the office in Seongdong-gu, Seoul. Photo by Jo Yongjun

After making its largest-ever investments last year, The Ventures plans to be even more proactive in investing this year. CEO Kim said, "With high interest rates, it is more difficult for companies to raise funds as easily as before. However, historically, funds formed during challenging market conditions have produced good results. This is because the value of money increases, valuations (the price relative to company value) are adjusted more reasonably, and the management capabilities of founders who solve real problems become more prominent."

Accordingly, the final investment decision always centers on the 'founder.' CEO Kim emphasized, "The reason we look at market size or business models is ultimately to assess the founder's logic and thinking. Qualitatively, we carefully consider whether this is someone we could work with for the next 10 years, or whether I could work under this person."

He added, "We closely examine whether the ideas presented by the founder are fresh or simply repeating past failures. If the story is obvious, we look for the ability to approach or execute it differently. If everything sounds too plausible or if there is unanimous internal agreement that something is good, we actually become suspicious and take another look."

Additionally, CEO Kim defines a VC as a platform that connects capital with startups. He said, "Based on my experience founding a secondhand trading platform, I see VC as a platform that, like the used car market, deals with 'information asymmetry.' I aim to redesign the VC industry with a founder's mindset. I want to create a structure that helps more portfolio companies with fewer people and resources, and delivers better information to limited partners (LPs)."