(1) Overall: 1st to 3rd quarter record record high of KRW 5,375.2 billion (+1.1% compared to the same period last year)
Venture investment in the first to third quarters of 2022 was estimated at 5,375.2 billion won. This is an increase of 1.1% from the previous record high of 1st-3rd quarters of 2021 (5,315.3 billion won).
The number of investments (4,033 cases) and the number of investee companies (1,917 companies) were also confirmed to be the highest in the first three quarters.
Looking at the investment performance by quarter, the investment in the first quarter of 2022 was KRW 2.21 trillion, an increase of 67.7% (KRW 892.9 billion) from the previous high of KRW 1.31 trillion in the first quarter of 2021.
Investment in the second quarter was KRW 1.91 trillion, an increase of 0.3% (KRW 5.8 billion) from the second quarter of 2021 (KRW 1.905.3 trillion), but the rate of increase compared to the same quarter of the previous year slowed (67.7% → 0.3%) compared to the first quarter.
Meanwhile, investment in the third quarter was KRW 1.25 trillion, a 40.1% decrease (△ 838.8 billion KRW) compared to the third quarter of 2021 (KRW 2.91.3 trillion). The investment market also showed signs of intensifying.
* Quarterly global (global) venture investment (CB Insights, $1 billion): (‘21.1Q) 135 → (‘21.2Q) 154 → (‘21.3Q) 164 → (‘21.4Q) 178 → (‘22.1Q) 142 → (‘22.2Q) 113 → (‘22.3Q) 75
(2) Industry: Investment in information and communication technology (ICT) services increased (+24.6%), while biotechnology (bio) and medical services decreased (△27.4%)
Investment in the information and communication technology (ICT) service sector, which is spotlighted in the digital transition period even after Corona 19, increased by 385.9 billion won (24.6%) to 1.95 trillion won, the highest among all industries.
On the other hand, investment in the biotechnology (bio)/medical sector was still the top investment sector at 878.7 billion won, but the investment decreased by 27.4% due to the uncertainty of the recovery market, such as the recent drop in stock prices of listed biotechnology (bio) companies and the strengthening of technology special listing standards. △332.3 billion won).
(3) History: Investment in early start-up companies increased, while investment in mid- and late-stage companies decreased
Investments in start-up companies (with less than 3 years of experience) in the first and third quarters of 2022 were KRW 1.56 trillion, an increase of 28.1% (KRW 342.9 billion) from the same period of the previous year.
Accordingly, the proportion of initial company investment in total venture investment was 29.1%, up 6.1%p from the same period of the previous year.
It is understood that venture investment in these companies has also increased as venture capitalists (Venture Capital) have increased their preference for early-stage companies that are relatively easy to negotiate prices in the face of a declining corporate value and can expect high returns in the medium and long term.
On the other hand, investment in mid-term and late-stage companies decreased by 10.4% (△254.6 billion won) and 1.7% (△28.4 billion won), respectively, compared to the same period last year.
(4) Follow-up investment: 72.3% in 2021 → 71.9% in 2022 (△0.4%p)
※ Follow-up investment: Invest in companies that have a history of attracting venture investment in the previous year
1) Initial investment in ’21 association A → Counted as follow-up investment when investing in association A or B in ’22
2) Initial investment in Association A in January ’22 → New discovery is counted when investment in Association A or B in July ’22
Subsequent investment in the first to third quarters of 2022 was KRW 3.86 trillion, an increase of 0.6% (KRW 23.2 billion) from the same period of the previous year.
Meanwhile, the proportion of follow-up investment among the total venture investment (KRW 5,375.2 billion) in the first to third quarters was 71.9%, a slight decrease (△0.4%p) compared to the same period of the previous year.
Over the past five years, the proportion of follow-up investment has been on the rise (61.6% in 2018 → 71.9% in 2022, +10.3%p), but when looking at the follow-up investment in 2022 quarterly, it decreases (76.5% in Q1 → 69.8% in Q2 → Q3) 66.9%).
This is interpreted as a result of reflecting the recent preference of venture investment companies (venture capitals) for early-stage companies.
(5) Large-scale investment: 120 companies attracting investment of 10 billion won or more in the first to third quarters, a record high
(1) Overall: 1st to 3rd quarter record record high of KRW 7.51.7 trillion (+29.9% compared to the same period last year)
In the first to third quarters of 2022, 278 venture funds were formed with a size of 7.51.7 trillion won, and the number of funds and the amount of fund formation recorded the highest ever in the first three quarters.
Looking at the status of fund formation by quarter, it was confirmed that the first, second, and third quarters all broke the previous record high performance in the same quarter of 2021.
Fund formation in the first quarter of this year was KRW 2.66 trillion, an increase of more than KRW 1 trillion (69.1%) compared to the first quarter of 2021 (KRW 1.576 trillion), exceeding the KRW 2 trillion mark for the first time in the first quarter.
In the second quarter, a fund of 1.786.7 trillion won was formed, a 40.7% (516.8 billion won) increase from the previous highest performance of the second quarter of 2021 (1,269.9 billion won).
The third quarter saw a slight increase (0.6%, 16.1 billion won) from the previous record-high third quarter of 2021, with a fund of 2.6 trillion won, but the growth rate slowed (69.1% in the first quarter → 40.7% in the second quarter → 0.6% in the third quarter) ) appeared to be
(2) Investors: policy finance 22.2%, KRW 1.56 trillion (+0.3%, +5.2 billion KRW)
Private sector 77.8%, KRW 5,483 billion (+41.8%, +1 trillion 616.1 billion)
Looking at the status of investors in venture funds formed in the first to third quarters of 2022, investment in policy finance, such as parent funds, was similar to the same period of the previous year (+0.3%, +5.2 billion), with a volume of 1.56 trillion won, accounting for 22.2% of the total investment. .
On the other hand, private sector investment increased 41.8% (1.661 trillion won) from the same period last year to 5,483 trillion won, accounting for 77.8% of the total investment.
First, looking at the investors in policy finance, the investment in the parent fund was 836.3 billion won, and the investment amount decreased by 22.6% (△ 244 billion won) compared to the same period of the previous year, when the parent fund was actively formed due to the supplementary budget.
Next, other policy institutions, including the Korea Development Bank and the government fund, invested KRW 269.8 billion, up 12.8% (KRW 30.6 billion) from the same period of the previous year, and growth finance invested KRW 462.6 billion, an increase of 89.6% (KRW 218.6 billion) from the same period last year.
Among private sector investors, the amount of investment in financial institutions such as commercial banks increased more than twice (106.7%, 921.1 billion won) from the same period last year to 1.784.7 trillion won, accounting for about a quarter (25.3%) of the total investment.
Meanwhile, private investment increased by 19.4% (KRW 176.3 billion) from the same period of the previous year to KRW 1.86 trillion, more than six times (508.6%, KRW 908.3 billion) more than in 2018.
As individuals actively participating in the stock market recently increased their level of financial investment and interest in venture investment, it is interpreted that individuals are actively participating in venture fund investment.
Corporate investment amounted to KRW 1.30.1 trillion, an increase of (+23.5%, +247 billion KRW) from the same period of the previous year as large corporations continued to invest in venture funds.
Minister Lee Young said, “Venture investment and venture fund formation in the first to third quarters recorded an all-time high, but recently, venture investment sentiment is changing to be conservative due to complex economic risks (risks) such as high interest rates, high inflation, and high exchange rates.”
“In response, the Ministry of SMEs and Startups will soon announce measures to strengthen the dynamism of the venture investment ecosystem, including measures to promote venture investment and expand the inflow of venture capital at home and abroad,” he said.
※ The statistics are provided by the Ministry of SMEs and Startups. ‘22year 1~3Quarterly venture investment, Venture fund performance trends, etc. to figure out with statistics analyzed, I would like to inform you that this is not a nationally approved statistics according to the Statistical Act..