[Listed VC In-Depth] ⑤ 'No.1 VC' Aju IB Investment Draws Attention with Bio Exits This Year

Organoid Science, Protina, Genbody Poised to Join KOSDAQ
Nineteen Companies Listed on Nasdaq in the U.S.; Yanolja Prepares for Nasdaq Debut with 10 Trillion Won Valuation
Investments in SpaceX and Others... Deep Tech Local Funds Formed in AI, DX, and Space

Editor's Note
The Lee Jaemyung administration is demonstrating a strong commitment to fostering venture businesses. Large-scale deregulation and budget expansion are anticipated. Venture capital (VC) is in the spotlight, as VCs are expected to play a pivotal role in the upcoming venture development process. In particular, attention is focused on listed VCs. These listed VCs previously attracted significant investor interest in 2021, when the venture budget surged and they all hit record-high share prices. In this context, Asia Economy is publishing a series that closely analyzes the strengths and key investment portfolios of major listed VCs.

Aju IB Investment is a first-generation VC with the longest history among domestic venture capital firms. Since its founding in 1974, it has built a unique portfolio and exit track record, leveraging over 50 years of investment expertise. The company stands out especially in the fields of artificial intelligence (AI) deep tech and bio-healthcare. In addition, it quickly expanded into the United States, known as the "mecca for startups," and has achieved the milestone of listing a cumulative 19 portfolio companies on the Nasdaq.

More than 8 IPOs per year on average..."VC IRR at 19.1%"

Aju IB Investment originated from Korea Technology Promotion Corporation, which was established with full funding from the Korea Institute of Science and Technology (KIST). In 2008, as public sector privatization was being promoted, it became part of the Aju Group and adopted its current name. The company was listed on the KOSDAQ market in 2018. The largest shareholder is Aju Co., Ltd. (60.47%), and KIST also holds a 7.17% stake.

Chief Executive Officer Kim Jiweon, who joined Aju IB in 1999, has served as CEO since 2015. During this period, Aju IB established an internal system to operate across all areas: accelerator (AC) business supporting startups, VC business investing in companies in the "death valley" stage, and private equity (PE) business conducting buyouts and mergers & acquisitions (M&A).

Total assets under management (AUM) surpassed 2 trillion won in 2023. From 2009 through March of this year, the company liquidated 43 funds. The internal rate of return (IRR) for its 25 VC funds is 19.1%. Since its inception, more than 200 portfolio companies have been listed on the KOSDAQ. A recent representative investment success is "Nanoteam," a company specializing in thermal management materials for electric vehicle batteries. Aju IB initially invested 3 billion won and achieved an overwhelming multiple of about 30 times during a partial exit in 2023.

IPO Market Recovery...Performance Rebound from Q2

However, first-quarter results this year were sluggish, with net profit at 800 million won. The main reasons cited for the decline in profitability are the weakness in domestic and international stock markets, driven by external factors such as U.S. President Donald Trump's high-tariff policy, and a drop in the value of held investment assets.

Starting from the second quarter, the company plans to achieve a meaningful rebound in performance by expanding AUM and maximizing performance-based fees. In the VC division, the "Aju Good Venture Fund 3.0," worth 182 billion won, completed its first closing on the 17th of this month. The final fund size is expected to exceed 200 billion won after the second closing. In the PE division, the formation of "Aju Good No.4 PEF," with a target size of over 250 billion won, is underway, with 157 billion won in investment commitments already secured. If additional commitments are obtained, the first closing size is expected to surpass 250 billion won.

The share prices of listed portfolio companies are also rebounding, particularly in the bio sector. A representative example is Inventage Lab, which develops long-acting injectable platforms. The company's share price rose approximately 218%, from 13,500 won at the end of March to 42,900 won at the close on the 18th. The company recently garnered attention by announcing that, amid the current anti-obesity drug boom, it had used its proprietary platform technology to extend the duration of oral obesity drugs to up to seven days. Aju IB currently holds about a 1.09% stake in Inventage Lab.

Organoid Science, a next-generation regenerative therapy developer that went public on May 9 (Aju IB holds a 7.65% stake), closed at 29,400 won on the 18th, 40% higher than its IPO price of 21,000 won. In addition, Aju IB is weighing the optimal timing for stake exits in other listed portfolio companies, such as Olix, an RNA-based drug developer, and GI Innovation, a biotech venture specializing in protein therapeutics R&D.

An Aju IB representative stated, "The IPO market is gradually recovering," adding, "In particular, as the sentiment in the bio IPO market is improving, we expect meaningful exit results from Aju IB's pipeline of companies scheduled for listing."

Fund Formation in the U.S...."Silicon Valley Office to Become Corporation in Q3"

Investor attention is also focused on IPO hopefuls for the second half of the year. First, GFC Life Science, which develops and supplies raw materials to K-beauty companies, is set to transfer its listing to KOSDAQ at the end of this month. Protina, which provides biomarker development and analysis services based on protein-protein interactions, is expected to conduct demand forecasting soon. Bigtex, a company specializing in carbon dioxide capture and utilization (CCU), and Genbody, a diagnostic kit manufacturer, have both completed preliminary listing reviews. In addition, the company plans to accelerate exit strategies centered on funds that generate performance-based fees, such as "Aju Good PEF," which includes Yanolja, and "Aju Good Growth No.2 Fund," which includes Nanoteam. Yanolja, an accommodation and travel platform company pursuing a Nasdaq listing, has postponed its IPO until after next year to achieve its target valuation of over 10 trillion won. Aju IB's remaining principal investment in Yanolja is reportedly about 35 billion won.

Meanwhile, investments in the United States are also bearing fruit. Nineteen of the companies invested in locally have succeeded in listing on the Nasdaq. The Boston-based subsidiary, Solasta Ventures, focuses on investments in bio companies, while the Silicon Valley office, Solasta Nexus, concentrates on advanced technology companies in AI, robotics, cloud, and autonomous driving. Solasta Nexus is scheduled to become a corporation in the third quarter. In 2023, Aju IB established a special purpose company (SPC) through Solasta Ventures and invested in SpaceX, led by Elon Musk.

An Aju IB representative commented, "We are working to form the Solasta Nexus Frontier Tech Fund with a target size of 50 billion won, and are currently recruiting limited partners (LPs)." The representative added, "This fund will focus on investments in AI, digital transformation (DX), and robotics, as well as in new business sectors such as sustainability, space, and climate technology."