Venture Business News

[Venture Business News]
*Oh, I'm going crazy because I'm jet-lagged. This morning, I wake up at 2am and eat 4am. I wake up and repeat... Eventually, I woke up at 5 o'clock, loaded it, and went for a morning swim.. Since 6 o'clock, I've been holding onto my mind because I'm so tired

*Number 1.. Number two... one news is that the money pulse is released, and one news is that the money is tied up.. ;;; On the same day, different news came out and covered it.. The reason for the release of the money pulse is that 3Q venture investment is increasing, and the money is tied up because the dry powder balance of funds formed by VCs has increased. They only see what they want in the same market, and the conflicting interpretations...

*Three times... Industrial Bank of Korea's investment amount is 300 billion won this year alone... Take a closer look and knock on the door of Industrial Bank of Korea...

*No.4.. It was said that getting LP was more difficult than picking stars in the sky, but all the first regular teams, who were anxious about not being able to form it, formed it. Congratulations!!

*Number 6.. Yanolja is said to turn to Modu Tour after the failed acquisition of Hana Tour. There was news of layoffs not long ago, and the layoffs were restructuring the employees of the companies that took over, and the company's internal reorganization for this acquisition target.. For more information, in the text.. For your information, the acquisition price is likely to be less than 50 billion won because the chairman of Modotour owns around 10%

*No.7.. Kim Jae-wook, vice president of ATINUM, invested 3 billion won in this 800 billion fund. It's a great house where management personnel invest in funds formed to manage the responsibilities of judges!

*Number 12.. The first deal I remember when I opened my eyes to the capital market is the MBK Homeplus deal.. I took over with a huge bridge loan, was hit by Coupang, stepped on by Corona, and recently came back to life... The strategy of selling all the real estate you own, reducing your size, focusing on what you're good at, and recovering it... After starting the real estate sale in 2020, he aggressively sold the Ansan branch in Gyeonggi Province for KRW 430 billion, followed by Daejeon Tanbang branch (KRW 90.8 billion), Daejeon Dunsan branch (KRW 380.2 billion), Daegu branch (KRW 127.9 billion), Busan Gaya branch (350 billion), Daejeon Dongdae branch (140 billion won), and Busan Haeundae branch (400 billion won). What will happen!

1) Will the start-up's Don Maccure be lifted...3Q Venture Investment Turns to Growth
Investments in ventures and startups in the third quarter of this year turned to a year-on-year increase for the first time this year. According to the Korea Venture Capital (VC) Association on the 1st, the investment of start-up investment companies and venture investment associations in the third quarter of this year was KRW 1.44 trillion, an increase of 12.5% year-on-year. This is the first time this year that investment has increased compared to the same period last year. New venture investment in the third quarter increased 8.6% compared to the previous quarter. The size of venture investment continued to increase in the third quarter following the second quarter (1.33 trillion won) compared to the first quarter (9207 billion won). By industry, information and communication technology (ICT) services accounted for the highest proportion of new investments at 26.8%, followed by bio and medical care. An official from the VC Association analyzed, "The phenomenon that investment was biased in some industries, such as non-face-to-face during the COVID-19 period, is easing." "In 2021, when liquidity was overflowing, funds were actively formed," said Lee Jae-sang, president of the Unicorn Institute of Management and Economy. "Because VCs usually create six-year funds and invest for three years and recover for three years, funds formed in 2021 must be invested between the end of this year and the beginning of next year." "If VCs do not exhaust dry powder, it is easy to lose the credibility of the investor (LP) and it is difficult to obtain management fees," he said. "Investments will be activated due to the exhaustion of dry powder from the second half of the year."

2) "The investment promotion measures aren't working either."10.8 trillion won in the first half of the venture fund Me Too fund
According to data submitted by the Ministry of SMEs and Startups to the National Assembly's Trade, Industry and Energy Small and Medium Venture Business Committee on the 31st, 10.8 trillion won of uninvested funds (dry powder) were formed by venture capital (VC) in the first half of this year. Venture funds' uninvested funds rose gradually to △ 7.1 trillion won at the end of 2020, △ 8.2 trillion won at the end of 2021, △ 8.3 trillion won in the first half of 2022, but surged to 11.3 trillion won at the end of 2022, when interest rate hikes began in earnest. In the first half of this year, the amount of new venture funds formed was 4.5951 trillion won, down 46.6% from the second half of last year (8.6092 trillion won), but the amount of uninvested funds decreased only by 500 billion won as venture investment did not recover. As a result, investment promotion incentives prepared by the government to resolve the money shortage have not been effective. The Ministry of SMEs and Startups has been applying incentives by paying an additional 1% of the excess as management fees and lowering the standard for performance fees by 0.5 percentage points if a venture fund that received investment from the parent fund through the "Dynamic Venture Investment Ecosystem Creation Plan" in November last year invests more than 40% within a year from the date of formation.

3) 1.2 trillion won for two years...The Industrial Bank of Korea, which has suffered a great deal of damage from venture investment
According to the investment banking industry on the 3rd, Industrial Bank of Korea has executed about 486.8 billion won in venture investment as of the end of September this year. Considering that last year's annual investment amounted to 697.8 billion won, the investment in the past two years alone amounted to about 1.1846 trillion won. This is the sum of indirect investment in venture funds and direct investment in acquiring shares in venture and start-ups. Industrial Bank of Korea's venture fund investment alone exceeds 300 billion won this year. Starting with 50 billion won invested in Company K and Atinum, they made 30 billion investments in Stone Bridge and 20 billion won, 10 billion won, and 10 billion won each to DSC, K2, and Premier. In addition, Soliders Investment, Lindman Asia Investment (277070), A Ventures, Caspian Capital, and Jiu Investment also succeeded in forming funds with the help of Industrial Bank of Korea this year. Industrial Bank of Korea also actively invested in startups this year. Major investments include Diorgin, The Pirates, and Sound Platforms.

4) The first 10 places in the Ministry of SMEs and Startups, it was formed late, but it was formed in the end!
According to the VC industry on the 1st, three of the 10 VCs selected as GPs for the mid-term investment project of the parent fund, Daedeok Venture Partners, Wonik Investment Partners, and High Investment Partners, have already completed the formation of the fund. Most of the rest of the VCs are expected to conclude their fund formation by the end of this year. HB Investments, Aceton Ventures, Tony Investments, A Ventures, KT Investments, Logan Ventures, and T-Investments will also hold a fund-building general meeting sometime in November. In fact, until the third quarter, there were concerns in the industry that VCs could fail to form funds. This is because LP (investors) have been shrinking due to interest rate hikes that have continued since last year, making it difficult to secure investment. In fact, the fund formation deadline for the project was July 24, three months from the final selection date (April 24), but all GPs except Daedeok Venture Partners applied for an extension to the parent fund because they could not meet the deadline for the fund formation. The parent fund is extending the deadline for formation by three months in case of unavoidable circumstances. In addition, since last year, it has been delayed by an additional month + 1 month considering the impact of the market cold wave.. VCs have been working hard in many ways to meet the deadline. A VC representative selected as a GP said, "It was not easy to form a fund because the absolute size of LP investment decreased," adding, "We worked hard to secure LP by changing the company's schedule to meet the date of the LP Investment Review Committee."

5) Gongcha, which is on sale for M&A, is 600 billion won worth of ransom?
As milk tea brand Gongcha is on sale in the M&A market, attention is being paid to how much the ransom will be evaluated. Bank of America Merrill Lynch was selected as the organizer of the sale and began the sale process. The market measures the price of more than 600 billion won for Gongcha, which TA Associates bought for 350 billion won. This is because EBITDA is 60 billion won. First of all, Gongcha's corporate value can be estimated by Evita Multiple, which was applied to the sale deal of food and beverage brands in the past. "Hallis (currently KG Hallis F&B)," which was acquired by South Korean PEF operator IMM Private Equity (IMM PE) in 2013 and sold to KG Group in 2020, is considered a suitable case. An official from Gongcha said, "There is no way to know how the corporate value of more than 600 billion won was calculated," adding, "It is estimated to be the value that has flowed out of the IB industry."

6) Yanolja's instinct for M&A changed to "Hana Tour → Modoo Tour."
According to the industry on the 27th, Yanolja is holding price negotiations to acquire Modu Tour, which is being discussed as a sale. However, it is known that Yanolja is struggling with the difference between the value of the stake offered by related parties, including Chairman Woo Jong-woong, the largest shareholder of Modotour, and the price that Yanolja wants. Yanolja, loaded with heavy ammunition after investing in SoftBank's Vision Fund, acquired Table (Information Services), Interpark in 2022, and Go Global Travel (GT) in 2023. According to the disclosure of investment in other corporations, 366.2 billion won was invested to acquire 60.21% of Interpark. Since then, Interpark has changed its name to Interpark Triple when it merged with Triple, a travel information provider. As a result, Yanolja established platforms such as Interpark, Triple, and Daily Hotel following its own platform, Yanolja, and referred to it as a "travel superapp portfolio." In this situation, the government has recently taken steps to prepare for intensifying competition by restructuring such as reorganization. The industry analyzed that it was a preliminary step to carry out additional M&A. Although it acquired Interpark on behalf of Hana Tour, it is believed that it did not have as much planning ability for travel products as expected. It is interpreted that they are taking over all tours to compensate for these vulnerabilities. Even if Hana Tour and Modotour's recent market capitalization are compared, Yanolja's point of view is expected to ease the price burden in terms of funding. Based on the closing price of the 26th of this month, the market capitalization of Hana Tour and Modotour is KRW 70.9 billion and KRW 297.3 billion, respectively, with significant gaps. The largest shareholder of Modotour is Chairman Woo, who holds a 10.87% stake. The total number of shares held by related parties, including this, is 11.24%. If this is calculated at the closing price on the same day, the value of the stake is about 33.4 billion won.

7) VC Annual Salary King' Kim Je-wook Invests 3 Billion in Atinum Super Large Fund
According to the VC industry, Vice President Kim Je-wook is said to have invested about 3 billion won in the ATINUM Growth Investment Association 2023. This fund is the first closing award