Lee Seung-yong, CEO of Atinum Investment, is establishing a fund in Singapore to invest in domestic venture capital (VC) firms, thereby serving as a bridge between Southeast Asian capital and Korean VCs. This fund is expected to meet the high investment demand of major Southeast Asian players in the Korean startup market, while also providing a new channel for foreign capital that previously missed investment opportunities due to a lack of information.
Singapore-Based Fund Opens Doors for Domestic VC Investment
According to the investment banking (IB) industry, Atinum Partners is in the process of establishing a fund of funds in Singapore that invests in domestic VCs, and is reportedly nearing its first closing. The fund's name is 'Atinum Ventures Pte. Ltd.'
Atinum Partners is a private investment company in which Lee Min-joo, Chairman of Atinum Investment, holds a 33% stake. It has historically formed fund of funds with its own capital. However, this Singapore fund is seeking to expand its reach, having recently secured one external investor. Both Atinum Investment and Atinum Partners are led by CEO Lee Seung-yong, who is Chairman Lee Min-joo's son-in-law.
The Atinum Singapore fund is actively holding meetings to invest in the venture funds of domestic VCs, with Oh Jun-seok, Executive Managing Director of Atinum Partners, in charge of the practical operations.
One of the recipients of investment from the Atinum Singapore fund recently is Company K Partners. Company K recently established an AI fund worth 122 billion won, of which 7 billion won was invested by the Atinum Singapore fund. It is understood that the Atinum Singapore fund adheres to the principle of maintaining investment amounts at less than 10% of each fund's total raised capital.
Based on recently secured external capital, the Atinum Singapore fund plans to continuously increase its fund size and expand investments in domestic VCs. This move is expected to inject new vitality into the currently contracting domestic venture investment market. In particular, it can serve as a much-needed lifeline for companies experiencing difficulties in securing funding during the early startup phase.
Significance of Connecting Southeast Asia and the Korean Startup Ecosystem
An IB industry official stated, "We understand that major Southeast Asian players, including Singapore, have considerable investment demand for the Korean startup market." Nevertheless, "there were many cases where they missed investment opportunities due to a lack of information because they did not have offices in Korea, and Atinum Partners appears to be developing a new profit model in this gap," the official added.
The establishment of Atinum Partners' Singapore fund is not merely about attracting capital; it is also seen as a crucial turning point that will more closely connect the Korean startup ecosystem with the global capital market. Southeast Asia has seen rapid growth in its startup ecosystem in recent years, driven by rapid digital transformation and technological innovation. With these Southeast Asian investors showing interest in Korean startups with innovative technology and growth potential, synergy between the two regions is highly anticipated.
In the past, Silicon Valley or European capital formed the main axis of domestic venture investment, but now Southeast Asian capital is emerging as a new investment destination, which is expected to have a positive impact on the global expansion of Korean startups. Especially with the global popularity of K-content, Korean startups can become even more attractive investment targets for Southeast Asian investors who have a heightened understanding of Korean culture and technology.
Revitalizing the Domestic Venture Ecosystem and a Stepping Stone for Global Leap
Recently, the domestic venture investment market has seen a decline in investment sentiment and an increase in startups facing difficulties in securing funding due to high interest rates and concerns about economic recession. In this situation, Atinum Partners' Singapore fund is expected to serve as an opportunity to inject new vitality into the domestic venture ecosystem.
The inflow of foreign capital not only expands opportunities for funding but can also provide the necessary networks and know-how for domestic startups to enter the global market. Singapore is a financial hub in Southeast Asia and home to the Asia-Pacific headquarters of various global companies, making investment through this hub an important stepping stone for domestic startups to advance not only into the Southeast Asian market but also into broader global markets.
Atinum Partners is expected to provide a stable channel for attracting overseas capital to domestic VCs and startups through the establishment of this fund, thereby further strengthening the global competitiveness of the Korean venture ecosystem. Attention is now focused on which domestic VCs and startups the Atinum Singapore fund will continue to invest in.
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