SV Investment Invested 4 Billion Won in HYBE Before BTS Debut, Recovered 108 Billion Won... Will It Hit the Jackpot Again? [In-Depth Analysis of Listed VCs] ①

Invested 4 Billion Won Before BTS Debut, Recovered 108 Billion Won in Exit
Rebellions, One of the Two Leading AI Semiconductor Firms, Plans IPO Next Year
Ably, the Women's Fashion Platform, Already Valued at 3 Trillion Won
Leading Overseas Expansion in the Industry: United States, China, Singapore

Editor's Note
The Lee Jaemyung administration is demonstrating a strong commitment to fostering venture businesses. Large-scale regulatory easing and budget expansion are anticipated. Venture capital (VC) is drawing attention, as these firms are expected to play a pivotal role in the upcoming venture development process. In particular, listed VCs are in the spotlight. These listed VCs previously attracted significant investor interest by reaching all-time high valuations during the surge in venture budgets in 2021. Against this backdrop, Asia Economy is launching a series that will provide in-depth analyses of the strengths and core investment portfolios of major listed VCs, beginning with SV Investment.

SV Investment is gaining attention on the KOSDAQ market for its investments in Rebellions, one of the two leading domestic AI semiconductor companies, and in Ably, the top women's fashion platform. With a track record of pioneering and boldly investing in sectors ahead of others?such as HYBE (the agency behind BTS) and Botox maker Hugel?SV Investment is now moving more swiftly and aggressively than other VCs to tap into overseas markets.

Yonhap News

Invested in HYBE Even Before BTS Debut... Proactive in Discovering New Sectors

In 2011, SV Investment invested 3 billion won in Big Hit Entertainment (now HYBE) at a valuation of 9 billion won. The following year, it made an additional follow-on investment of 1 billion won. This was before BTS had even debuted, when the company only had trainees. At a time when major entertainment companies like SM, JYP, and YG dominated the market, it was a true venture for a VC to invest in a newly established entertainment company. SV Investment recouped 108 billion won (exit) after seven years.

Beyond Big Hit, SV Investment also achieved excellent results by investing relatively early in companies such as Botox maker Hugel and fashion and beauty company APR. The gross internal rate of return (Gross IRR) for its nine liquidated funds to date is 18%, placing it among the leading domestic VCs.

Building on its expertise developed in Korea, SV Investment has been expanding into overseas markets over the past several years. It has established local subsidiaries and funds in the United States, China, and Singapore, which are currently in operation. Over the past three years, overseas investments have accounted for as much as 27% of its total investments.

CEO Hong Wonho stated, "We have a strategy of discovering leading sectors that drive new changes in the world and actively making follow-on investments. Recently, we have been focusing on supporting the overseas expansion of Korean ventures and identifying overseas investment opportunities in strategic locations."

Semifive to Go Public This Year... Unicorn Companies Emerging One After Another

Companies invested in by SV Investment are rapidly achieving unicorn status. A prime example is Semifive, a semiconductor design company preparing for an IPO this year. With sales of 111.8 billion won last year, the company is expected to achieve a valuation of over 1 trillion won upon listing. SV Investment invested 11.5 billion won in the Series B round in 2021 and an additional 3 billion won in 2023.

Rebellions, which along with FuriosaAI forms the two pillars of domestic AI semiconductor chip design, is planning to go public next year after conducting a pre-IPO round this year. When it merged with Sapeon Korea at the end of last year, it was already recognized with a valuation of 1.3 trillion won. SV Investment invested a total of 20 billion won in Rebellions?10 billion won in Series A in 2022 and 10 billion won in Series B in 2023?making it the most active domestic VC in this company.

Ably, the fashion platform in which SV Investment invested 20 billion won, attracted a 100 billion won investment from China's Alibaba Group last year, resulting in a company valuation of 3 trillion won.

Leading Overseas Investments in Robotics and Eco-Friendly Technologies

SV Investment is leading investments in local tech companies through its overseas network. A representative example is its lead role in the seed investment round for Contoro, a logistics robotics startup headquartered in Texas, USA, in 2023. It is also reported that Amazon and Coupang participated as strategic investors (SI) in the Series A round earlier this year.

Early last year, SV Investment participated as a new investor in Amogy, a U.S.-based startup developing ammonia-based zero-carbon power generation systems, and jointly led a global investment round of $56 million (approximately 80 billion won) with Saudi Aramco Ventures. Existing investors, including Singapore's sovereign wealth fund Temasek and Japanese shipping company MOL, also participated in the round.

In China, SV Investment led the investment round for Cyclewell, a battery recycling company, thereby advancing its strategy to strengthen the global eco-friendly and secondary battery value chain.