In 2013, Kakao Ventures made the initial 200 million-won investment in Dunamu, now the operator of South Korea’s major crypto exchange, Upbit. Over the years, Kakao Ventures led two subsequent investment rounds in 2015 and 2017, totaling 3.3 billion won.
Recently, Kakao Ventures and its parent company Kakao Corp. sold a portion of their Dunamu stakes, realizing approximately 2.2 trillion won from the exit. This move resulted in a remarkable over 1,000-fold return for Kakao Ventures alone, according to Kim Ki-jun, the CEO of the venture capital firm.
Kakao Ventures, established in 2012, focuses on early-stage startups and manages 410 billion won in assets. The company, which primarily targets seed and Pre-Series A rounds, has been the first institutional investor in 90 percent of the 300 startups under its umbrella, as Kim highlighted.
With an annual return of about 150 billion won over the past five years, Kakao Ventures anticipates maintaining this momentum into 2027, including the potential listing of Rebellions, a local chip startup valued at approximately $2.3 billion. Kim mentioned the timing for recouping investments in Rebellions through an IPO.
Kim, a former nuclear engineer turned venture capitalist, noted the increasing global interest in South Korean startups amidst the AI boom. Kakao Ventures is witnessing heightened demand from foreign limited partners seeking startup introductions or secondary share sales, recognizing the country’s manufacturing capabilities and talent pool.
Amid a local stock market upsurge boosting investor confidence, Kakao Ventures is planning a new fund of around 100 billion won, significantly larger than its previous funds. This strategic move aims to support more substantial investments in early-stage companies in AI infrastructure and hardware sectors.
Venturing into international markets since the previous year, Kakao Ventures has been funding Silicon Valley startups in areas like space, robotics, and semiconductors.
