Kakao Ventures Investment Review: "90% of New Investments in 2025 as First Institutional Investor"

Focus on Seed and Pre-Series A Stages... "Betting on Potential Amid Uncertainty"
From Ultra-Early-Stage Investments to Exits and Fund Formation

Kakao Ventures demonstrated the virtuous cycle of early-stage investment by venture capital (VC) last year, maintaining an aggressive approach despite the investment winter.

According to Kakao Ventures on January 20, the firm focused on its core mission of discovering ultra-early-stage companies, maintaining the proportion of first institutional investments at around 90% of all new investments, even as the early-stage investment market contracted significantly last year. At the same time, Kakao Ventures recovered funds totaling 130 billion won and successfully established its 11th new fund.

From Seed Investments to Global and Insightful Deals... "Strengthening Ecosystem Engagement"

Last year, Kakao Ventures made a total of 27 investments, amounting to approximately 20.7 billion won. Of the 19 new investments, 18 were at the seed stage and one at the pre-Series A stage. Notably, Kakao Ventures acted as the first institutional investor in 17 of the new investees, solidifying its position as a provider of venture capital. To date, Kakao Ventures has built a portfolio of around 290 companies.

The main investment areas included: ▲IT and services (6 deals), ▲deep tech (9 deals), ▲digital healthcare (3 deals), and ▲gaming (1 deal). The firm focused on teams addressing inefficiencies in daily life where artificial intelligence (AI) has yet to penetrate, as well as beauty startups with strong global growth potential. In deep tech, attention was given not only to core technologies such as quantum computing and next-generation batteries, but also to manufacturing AI transformation (AX) and physical AI teams. In digital healthcare and gaming, Kakao Ventures welcomed new companies specializing in medical AI and AI-based game engine development, respectively.

The "Going Global" strategy for overseas expansion also yielded tangible results. Kakao Ventures made seed investments in North America-based companies such as OligoSpace and Jappon, expanding its reach. In particular, the investment in DallasAI was made jointly with prominent Silicon Valley investors such as Pair VC and Lightscape Partners, strengthening local networks.

This Year: Targeting Areas of Korean Strength and Global Core Technologies

Kakao Ventures also achieved results in fund recovery and management. Through the sale of unlisted shares and other means, the firm recovered approximately 130 billion won. As several funds near liquidation, this amount is expected to increase further. The Kakao Growth Sharing Game Fund, established in 2016, was successfully liquidated with a threefold return. In addition, the new 44 billion won "Startup Korea Kakao Copilot Fund" has been established to secure future growth momentum.

This year, Kakao Ventures will pursue a "two-track" strategy to target both domestic and international markets. In Korea, the focus will be on traditional areas of strength such as manufacturing, semiconductors, and secondary batteries, as well as digital healthcare based on medical data. Overseas investments will prioritize the early identification of teams with next-generation core technologies such as space and quantum computing.

Kim Kijun, CEO of Kakao Ventures, stated, "Last year's achievements were possible because we stayed true to the essence of 'venture capital' by taking the first step and planting our flag even in uncertain times." He added, "This year, we will continue to serve as a strong partner to entrepreneurs, leveraging Korea's clear competitive advantages."