Naver D2SF, Naver’s corporate venture capital organization, is celebrating its 10th anniversary. It will now help Korean startups expand into global markets, with a focus on Silicon Valley in the U.S.
Naver D2SF has helped the startup community by discovering 115 important tech companies in Korea, including AI semiconductor startup Puriosa AI, Nota AI, and Crowdworks. Now, it aims to help create a “tech unicorn” company, a startup valued at over $1 billion, which has not yet happened in Korea.
Yang Sang-hwan, head of Naver’s D2SF Center, held a 10th-anniversary event at Naver’s D2SF Gangnam Office in Seoul on the morning of the 13th and explained, “Naver D2SF has focused on strategic investments with a long-term breath rather than worrying about short-term profits,” adding, “We have invested in 115 startups over 10 years, and the sum of cumulative corporate values amounts to 5.2 trillion won.”
The total value of the companies Naver has invested in has almost quadrupled, growing from 1.4 trillion won in 2021 with 70 companies. It’s also important to note that 96% of the startups Naver invests in survive.
“The probability of startups founded in Korea surviving after five years is 30-40%,” said Yang, head of the center. “The survival rate of startups with Naver D2SF is very surprising.”
Unlike financial investments that aim to make a profit quickly, Naver D2SF focuses on investing in early-stage startups. These startups have the potential to work well with Naver’s main businesses, such as artificial intelligence (AI), robotics, healthcare, and commerce.
99% of Naver D2SF’s investments were made in the early stages, either seed or Series A. A great example of success is Puriosa AI, which has become a top AI semiconductor startup in Korea. It was just an idea when Naver D2SF first invested in Puriosa AI in 2017. This year, there are rumors of a possible acquisition by Meta.
“At that time, there were many voices asking how startups could make AI semiconductors,” center director Yang said, recalling the time. “Naver designed Puriosa AI’s first semiconductor specifications together, and we made our first investment, so Puriosa AI moved into the D2SF space.”
Clobot, which created software for robots, and Crowdworks, a listed AI data company, are also key investments in Naver D2SF’s portfolio.
At the meeting, two startups, “Tech Taka” and “Mubin,” joined the discussion. Tech Taka is a logistics startup that works with Naver’s same-day delivery service, while Mubin is creating synergy with Naver’s Zizik through its Mosheb capture technology.
They mentioned that, apart from connecting with Naver’s various services, being part of the D2SF community with other startups is a huge advantage.
Naver D2SF is now focusing on helping Korean startups expand globally. A D2SF office was opened in Silicon Valley in October last year to support this.
In the meantime, director Yang said that many unicorns have been born in the Korean startup ecosystem, but there have been no technology unicorns. “First, we want to find a frontier company that can grow globally and act as a bridgehead to advance into North America.”
It is said that Naver D2SF is helping Korean startups get more capital and resources from abroad by using its base in Silicon Valley. It is also working on its growth project.
We are also considering investing a lot in overseas startups, and we don’t care about nationality when investing,” said Yang, head of the center. “There are also many positive functions, such as cooperation between invested overseas startups and domestic startups.”
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