The South Korean government, NH Bank, and OurCrowd have partnered to create an $80 million bilateral fund aimed at advancing deeptech innovations, targeting key sectors like automotive, cybersecurity, and quantum computing in South Korea and Israel.
South Korean Government, NH Bank, and OurCrowd Launch $80 Million DeepTech Investment Fund
Seoul & Jerusalem | 27 June 2024 – The South Korean government, in partnership with NH Bank and Israeli venture investor OurCrowd, has announced the creation of an $80 million bilateral fund aimed at advancing deeptech innovations. This joint fund will target approximately 25-30 startups across South Korea and Israel, focusing on key sectors like automotive, cybersecurity, digital health, robotics, semiconductors, and quantum computing.
Of the targeted fund, $48 million has already been raised by the South Korean entities, NH Venture Investment and K-Growth, with OurCrowd actively raising the remaining amount from its global network of over 240,000 registered investors.
Strategic Sectors and Collaboration
The initiative, formally named the NH-OC Global Open Innovation Fund, seeks to bridge the innovation landscapes of South Korea and Israel. It will enable startups from both countries to leverage each other’s technological strengths and market opportunities.
The fund’s backers include the Korea Growth Investment Corporation (K-Growth), which has committed $32 million. K-Growth is a governmental financial agency under the Ministry of Trade, Industry and Energy (MOTIE) and is responsible for strategic, policy-driven investments. NH Venture Investment, the venture arm of NongHyup Financial Group, has pledged $16 million.
Potential Global Impact
Jon Medved, CEO of OurCrowd, expressed optimism about the fund’s potential. “The establishment of the Israel-Korea bilateral fund signifies a mutual recognition of the strengths both countries bring to the table. Israeli DeepTech companies will now have direct access to South Korean industrial giants and vice versa. This could pave the way for significant collaborations in both Asia-Pacific and global markets.”
Kim Hyun Jin, CEO of NH Venture Investment, highlighted the fund’s global aspirations. “K-Growth has launched this fund to foster the global expansion of Korean companies through innovative partnerships with high-tech enterprises in Israel. We anticipate that OurCrowd’s extensive network will facilitate valuable collaborations between Korean and Israeli startups.”
Economic Context
South Korea’s economy, ranking as the 13th largest globally and the 4th largest in Asia, is characterised by its substantial investment in research and development (R&D). The country’s gross domestic product grew by 4.1% in 2021. It stands as the world’s fifth-largest manufacturing power and the second-largest investor in R&D as a percentage of GDP, just behind Israel, the leader in this metric.
About the Partners
OurCrowd is touted as Israel’s most active venture investor, having been recognised by PitchBook annually since 2013. The platform empowers both institutions and individual accredited investors to invest in emerging technology companies. To date, OurCrowd has raised over $2.3 billion in commitments and facilitated investments in more than 440 portfolio companies globally.
NH Venture Investment is the venture arm of NongHyup Financial Group, which ranks among South Korea’s top five financial groups with assets exceeding $400 billion. NH Venture Investment focuses on nurturing startups and SMEs with strong technological competitiveness.
The collaboration between South Korean and Israeli entities represents a significant move towards fostering international innovation in critical technology sectors. As both nations position themselves as leaders in tech advancements, the bilateral fund hopes to deliver substantial economic and technological benefits, marking a new chapter in cross-border venture investments.
This article provides an impartial and balanced perspective, detailing the key aspects of the newly established investment fund without promotional language.
