The corporate venture capital arm of Korean tech giant Naver, D2SF, seeks to expand its presence in the US market to help promising domestic tech startups break into global arenas.
In marking the center's 10th year since its establishment, Naver D2SF shared its broader vision to expand its US footprint that requires significant investment and access to larger markets to support startups' growth beyond domestic confines — especially at a time when competition in AI and other advanced technology is intensifying.
“When we look at the Korean startup ecosystem, we have witnessed (business-to-consumer) and platform startups become unicorns, but not a single tech startup has become a unicorn yet,” said Yang Sang-hwan, head of Naver D2SF, at a press event held in Seoul on Tuesday.
Yang explained that while Korean capital plays a key role in discovering and nurturing early-stage startups locally, startups need access to greater funding and resources, which are often available outside of the country, in order to scale globally.
“D2SF serves as a bridge that works both ways. It provides a foothold for Korean startups looking to enter the North American market, while also helping overseas startups establish operations in Korea to enhance the diversity of our startup ecosystem,” Yang said.
Under this vision, D2SF established an office in Silicon Valley in October last year. According to the company, 81 percent of its portfolio companies are now actively pursuing international expansion.
D2SF is also actively reviewing overseas investment opportunities, according to Yang. Since opening its Silicon Valley office, Naver D2SF made new investments in three US-based startups: Claythis, an AI solution capable of generating 3D characters and animation; YesPlz, an AI-powered virtual shopping platform and Rembrand, an AI-powered advertising startup.
Since its launch in 2015, D2SF has invested in 115 early-stage startups across AI, robotics and virtual technology fields, with most at the seed or Series A stage. The company said the combined valuation of its portfolio companies now stands at approximately 5.2 trillion won ($3.6 billion), an almost fourfold increase from 1.3 trillion won in 2021.
Furiosa AI, a Korean AI chip startup which made headlines for turning down US tech giant Meta Platform’s $800 million takeover offer, is one of the companies that Naver D2SF backed from very early years. Naver participated in Furiosa’s seed round and two subsequent investment rounds.
Naver CEO Choi Soo-yeon also stressed that startups that received investments from Naver D2SF have become an important collaboration partner for Naver.
"Naver D2SF was able to gain a broader perspective on technology and the IT ecosystem, while also achieving technological synergy with outstanding startup partners," said Choi. "Going forward, Naver will continue to support promising Korean startups so they can achieve greater growth through global expansion."
sahn@heraldcorp.com
