[Listed VC Deep Dive] ⑥ 'The Company Behind FuriosaAI' DSC Investment

Discovering Promising Startups Through Subsidiary Schmidt
Leading Industry Innovation with ERP Development and Dedicated Exit Teams
AI Adtech Firm Moloco Prepares for Nasdaq Listing Next Year
First to Invest in Virtual Idol Sensation 'Plave'

Editor's Note
The Lee Jaemyung administration has demonstrated a strong commitment to fostering the venture industry. Major regulatory easing and budget expansion are expected. Venture capital (VC) firms are drawing significant attention, as they are expected to play a pivotal role in the future development of the venture ecosystem. In particular, listed VCs are in the spotlight. These listed VCs previously garnered intense investor interest in 2021, when the venture budget surged, with many reaching all-time high share prices. In response, Asia Economy is publishing a series that provides in-depth analysis of the strengths and core investment portfolios of major listed VCs.

There was an incident earlier this February that shook the industry enough to prompt an emergency forum in the National Assembly. The U.S.-based Meta, the parent company of 'Facebook' and 'Instagram,' attempted to acquire the domestic AI semiconductor fabless company FuriosaAI. In the end, FuriosaAI shifted its focus to a listing on the Korean stock market, and the episode concluded without a deal. Nevertheless, it sparked significant interest in the potential of Korea's AI industry, and the stock price of its investor, DSC Investment, surged.

DSC Investment, which gained fame thanks to FuriosaAI, has long been recognized among major VCs for its strong track record of early-stage investments in deep tech startups. AI semiconductor design firm Semifive is preparing for a listing in Korea this year, while AI advertising service Moloco is aiming to go public in the U.S. next year, raising expectations for successful investment exits. Recently, MangoBoost?expected to become the next AI semiconductor unicorn?Pinetree Therapeutics, which succeeded in a technology transfer to a global big pharma company just five years after its founding, and Blast, which created Korea's first virtual idol sensation, are all experiencing robust growth.

A VC Leading Innovation in the Industry

DSC Investment is known not only for pioneering deep tech investments in fields such as biotech, secondary batteries, and artificial intelligence (AI), but also for spearheading innovation within the VC industry itself.

In 2017, DSC Investment established Schmidt, an accelerator subsidiary focused on early-stage deep tech investments. Schmidt concentrates on seed to bridge-stage investments, while DSC leads subsequent rounds for companies needing further growth, collaborating closely in this process. The company also supports startups by providing HR, PR, and legal advisory services at its own expense.

Its subsidiary Ddokddok developed a VC ERP system that automates tasks such as quarterly reporting for portfolio companies, approval of consent and consultation rights, and stock option management. Full-time staff with investment review backgrounds are dedicated to devising and executing exit strategies, ensuring systematic profit management.

Yoon Geonsu, CEO of DSC Investment, explained, "We have established a virtuous cycle by discovering early-stage companies that drive industrial innovation, systematically increasing their value, and enabling sustainable investment through an advanced post-investment management system." He began his career at LG Institute of Technology in 1988, entered the venture investment industry at Korea Technology Investment in 1999, worked at LB Investment from 2007, and founded DSC Investment in 2012.

A Lineup of Deep Tech Unicorns Awaiting Exit

Currently, the area that brings the most attention to DSC Investment is AI. In the case of FuriosaAI, DSC made an initial investment at the founding stage and continued with five follow-on investments, becoming the largest institutional investor. With the Lee Jaemyung administration pledging "100 trillion won investment in AI during its term," FuriosaAI is expected to play a key role in the hardware sector. MangoBoost, a data processing unit (DPU) developer founded in 2022 by Kim Jangwoo, a professor at Seoul National University's Department of Electrical and Computer Engineering, is also a promising unicorn candidate (with a corporate value of over 1 trillion won as an unlisted company). MangoBoost has demonstrated superior computing power in AI infrastructure environments compared to Nvidia's semiconductor chips, attracting significant attention. It was already valued at 400 billion won during its global Series A funding round in 2023.

Semifive, a semiconductor design solution company that also received investments from major VCs such as SV Investment and LB Investment, is scheduled to go public in Korea in the second half of this year. Moloco, an AI advertising service platform, is expected to list on the Nasdaq next year. Last year, Moloco recorded 640.5 billion won in revenue and 138.6 billion won in operating profit, and its corporate value is expected to exceed 5 trillion won upon listing next year.

Bio investment companies that previously drove DSC Investment's growth, such as early-stage investments in ABL Bio, are also steadily expanding. A prime example is Pinetree Therapeutics, founded in the U.S. in 2019 by Dr. Song Hojun, the original developer of 'Lazertinib.' Last year, Pinetree successfully transferred EGFR degrader, a non-small cell lung cancer treatment, to global pharmaceutical company AstraZeneca in a deal worth a total of $500 million.

As domestic bio companies are rarely listed under the technology exception program, personalized organ regeneration platform company Rokit Healthcare succeeded in going public last month. DSC, which has continuously invested since Series A in 2016, is the largest financial investor.

DSC Investment also boasts a strong portfolio in the content and commerce sectors. A notable example is Blast, which planned the currently trending virtual idol 'Plave.' Schmidt first discovered the company, and DSC Investment provided follow-on funding. Last year, both HYBE and YG made equity investments, drawing widespread attention. Plave is scheduled for an Asia tour this year, just two years after debut, and all tickets for the first three shows sold out in advance.