- Korea Venture Fund

Confidential & Proprietary Information -

Please do not distribute
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Why Korea?

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World’s
Trend-setter
-  Cyworld, Messenger-
based games, Korean- Most Technology-
Wave, and more Friendly Country
-  Young, dense -  World’s highest
population smartphone
-  Fast & dynamic changes penetration (73%)
-  World’s highest
Booming Startup average internet speed
Activities (14Mbps)
-  Wide adoption of high-
-  High-growth sectors:
speed mobile internet
Mobile, Internet, E-
(LTE & LTE-A)
commerce, Digital
contents, Gaming
-  Strong gov’t support
-  Steady IPO market w/
M&As ramping up
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 Startup
Investment
Landscape

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 Angel Venture Entrepreneurs
Investors Capitals -  Limited access to
-  Few and far -  Most still chase capital; stiff
between (~ a few profitable, late- competition to get
hundred) stage companies angels and VC
-  Most are -  Passive -  Desire better
unsophisticated and investments; very support systems for
inexperienced w/ limited value-adds startups, looking for
early-stage -  Unfair terms for cues from Silicon
companies entrepreneurs are Valley
-  A few ‘angel clubs’ common -  Often turn to
are emerging foreign VCs for
investment and
advice

Opportunity to create “Korea’s Andreessen Horowitz”

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Investment
Targets

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Focus on Early-stage
- Seed money or Series A
- First institutional money for startups

Focus on High-growth
- Mobile, Internet, E-commerce, Digital contents, Gaming
- Select hardware such as Wearables

Focus on Big Wins

- Market cap potential of $100M or higher
- Initial ownership target: 10~20%
- Each investment has the potential to return the fund

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 Fund
Operation

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 Investment Schedules

￭  Fund lifetime = 8 years

Investment  Period   Follow-­‐ons  &  Exits  

0   4   8  yrs  

￭  Investment Period: First 4 years

-  Select 3-4 best teams/yr
-  Typical unit investment: $500K - $1M
-  Expected number of investments: 12 - 15
 

￭  Flexible Follow-ons (no pay-to-play)

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 Deal Sourcing
￭  Referrals from GP’s solid network among Korean
entrepreneurs and industry executives
￭  Strong relationship with key early-stage investors
already established via past co-investments
￭  Government-sponsored accelerator program under
consideration

Fund Marketing
￭  Media interviews and startup conferences/forums for
zero-cost advertising
￭  Leverage from GP’s popular blogging site & social
media
￭  Outreach program: Office hours, Networking events
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Investment Team
Phil Yoon (General Partner)
-  Experienced venture capitalist who understands both Korea and Silicon
Valley market better than anyone
-  5 yrs of VC experience at top-tier firms (Intel Capital, Walden
International) + 8 yrs of experience in IT industry
-  Representative Korea investments: SundayToz (Anipang game), HiDeep
-  BS in EE Seoul National Univ, MS in ECE CMU, MBA Wharton

Doug Lee (Venture Partner)

-  Angel investor & advisor in Korea and Silicon Valley
-  Former CFO of Gmarket, the largest e-commerce company in Korea.
Completed its Nasdaq listing in 2006 and M&A with eBay in 2009
-  Former investment banker at Credit Suisse and Citigroup
-  Representative angel investments: Knowre, GreenCar, Noom
-  BS in Mgmt Seoul Nat’l Univ, MS in Finance London Schl of Economics

Gibs Song (Venture Partner)

-  Silicon Valley Entrepreneur, Mentor to startups, Angel investor
-  Former executive at Samsung; Executive advisor to PARC (Xerox)
-  Over 25 yrs of experience in technology sourcing, management, and
consulting in 3 countries
-  Representative angel investments: Talkcool, Next Verb, Tapas Media
-  BS in EE University of Ottawa
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 Our
Differentiation

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One and only Silicon Valley
VC to invest in early-stage
Korea companies
Team’s broad network in
Korea & Silicon Valley
-  Access to the best
opportunities in Korea
-  Ability to facilitate Korea
startups’ US expansion
-  Ability to bring other US
investors in later rounds
Team’s unique experience
& background
-  Successful cross-border
investment records
-  Uniquely positioned to assist
Korean entrepreneurs
“Industry Legend”
advisors & investors
-  Unmatched mentorship
opportunities for portfolio co’s
-  Differentiated brand
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Is Korea Market
Big Enough?

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Past Examples
$4B

$5B $18B

$200M $1B

Recent Examples

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Future Examples

$10B  

$1B   $500M  

$5B   $3B  

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Fund Term Summary
￭  Target Fund Size: $12M

￭  Fund Lifetime: 8 years

￭  Investment Period: 4 years

￭  Management Fee: 2.5%

￭  GP Carry: 20% after return of capital

￭  GP Contribution to Fund: 1%

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