[VC Now](26) Laplace, Master of Bio Investment: "Scaling Up Funding This Year"

Hansoo Han, CEO of Laplace Partners
Veteran in Bio and Deep Tech Investment
G2GBIO Exit Achieves 10x Return
"New Fund Launch This Year... Expanding Overseas Investments"

"I want to play a role in making it easier for investors to approach venture investments."

Laplace Partners, now in its fifth year since founding, is experiencing rapid growth. Founded with the philosophy of serving as a bridge so that anyone can easily participate in venture investments, Laplace is preparing to launch its sixth fund this year. Hansoo Han, CEO of Laplace Partners, expressed confidence, saying, "With the exit market expected to become more active next year, Laplace is also poised for even greater growth."

Born in 1968, CEO Han earned a bachelor's degree in Food Engineering from Seoul National University and a master's degree in Bioprocess Engineering from the University of Illinois at Urbana-Champaign. He built his career in the bio sector by working as a researcher at the Illinois State Research Institute in the United States and as a bioengineering engineer in California.

Han began his career as a venture capitalist in 2000 at Infinite Technology Investment, during the first venture boom. His first investment at the time was in Novarex, now a leading health functional food company in Korea. After moving to KB Venture Capital (now KB Investment), he developed his expertise by leading investments in various bio companies.

Later, feeling the need to deepen his understanding of technology, Han spent over ten years as a senior researcher at Samsung Advanced Institute of Technology and at Intel Korea, building expertise in IT technologies such as artificial intelligence (AI). In 2014, he participated in the establishment of 'D2SF,' Naver's investment organization. Recognizing the value of startup investment, he founded Laplace in 2020.

Han explained, "Laplace Partners is named after the Laplace Transform, a formula created by French mathematician Pierre-Simon Laplace, which makes complex mathematics easier to solve. The name reflects our aim to help investors who find venture investment challenging to invest more easily through Laplace."

Hansoo Han, CEO of Laplace Partners, is giving an interview to The Asia Business Daily on the 27th in Mapo-gu, Seoul. Photo by Dongju Yoon

Proven Capabilities in Bio and Deep Tech Investment... 10x Returns

Laplace's main investment targets are bio and deep tech companies. In particular, the firm has achieved high returns in bio investments, largely thanks to CEO Han's ability to select promising companies.

Laplace generated more than 10 times the return through G2GBIO, the first investment of the 'Laplace Venture Investment Association No. 1.' The exit period was also short, at just 2.5 years. Thanks to the success of G2GBIO, the first fund achieved a final internal rate of return (IRR) of 33%. It is rare for a small venture capital firm to record double-digit returns on its first fund.

Han explained, "As a new VC, we faced limitations in gathering information on the ground, so we paid great attention to our investment strategy, and the strategy we chose was the 'top-down approach.'"

He added, "Bio companies generate revenue by selling intellectual property to big pharma (major pharmaceutical companies). We selected companies for investment by considering which companies create and sell intellectual property well, and which companies are likely to purchase this intellectual property."

Last year, Laplace also formed a consortium with Capstone Partners to create a fund. Capstone, which had relatively less expertise in the bio sector, strengthened its investments in the field by collaborating with Laplace, while Laplace, as a new VC, received support in overcoming challenges in fund-raising.

Han said, "The bio sector is currently undervalued due to weakened investment sentiment. I believe now is a good time to invest in bio companies, and we are currently reviewing many potential investments."

Proactive Investments in Overseas Startups

Laplace is boldly pursuing overseas investments, an area where even mid-sized VCs are hesitant to venture.

Han explained, "Currently, one of our investment managers is stationed in Boston, USA, with the initial goal of identifying promising technology trends. From the early days of our company, we recognized the importance of overseas investment, and as we found many promising companies, we began making direct investments."

Laplace recently made a seed investment in a bio company with technology for removing localized fat through injections. Han said, "The reason we are actively considering the United States is that its venture market is recovering faster than Korea's. The M&A market is also active, leading to faster exits."

Laplace plans to establish a new fund at the end of November. So far, including project funds, the firm has created five small funds. Its assets under management (AUM) amount to 15 billion won. Han stated, "We will continue to aggressively invest by creating a series of small funds and, based on this, achieve successful exits with high returns, maintaining our current strategy."

Even Greater Expectations for Laplace Next Year

Laplace is looking to exit from a number of portfolio companies. Four investment targets are expected to go public through initial public offerings (IPOs) next year.

These include: ▲ Ibex Medical Systems, a company specializing in high-pressure oxygen chambers; ▲ Avomed, a new drug development company focused on Wilson's disease and congenital hearing loss; ▲ Ingenium Therapeutics, a developer of next-generation cancer immunotherapies based on NK cells and the innate immune system; and ▲ HITS, an AI-based new drug development company.

Han commented, "These companies are experiencing rapid revenue growth and are recognized for their growth potential based on various government policies. With the government's recent stock market stimulus policies, such as 'KOSPI 5000,' we expect the exit market through IPOs to improve significantly next year."

Laplace is also actively considering investments in AI companies. Currently, the firm is working with the Electronics and Telecommunications Research Institute (ETRI) to help attract investment to startups in the Honam and Jeju regions.

Han said, "We are receiving great support by being able to review regional AI companies nurtured by ETRI first. While AI companies in Seoul and the metropolitan area are receiving high valuations, valuations in the regions are lagging, making this an opportune time for investors to invest."