TBT closes first round of post-coronavirus open innovation fund

Venture capital firm TBT said on the 31st that it had completed the first close of its Open Innovation Fund and would expand the fund to as much as KRW 39 billion.

In April, TBT was selected as a manager for the early-stage startup category of the Ministry of SMEs and Startups’ 2020 first-round Fund of Funds investment program. It has now established a KRW 30 billion Open Innovation Fund. Under a fast-closing program that allows funds to register and begin investing after securing just 70% of their target capital, TBT completed an initial close of KRW 23 billion ahead of schedule. It plans to raise as much as KRW 39 billion over the next six months.

The Fund of Funds is the main investor. Private investors include Shinhan Financial Group, SK Broadband and the Korea Social Value and Solidarity Foundation.

Subtitled the “Post-Coronavirus Fund,” the Open Innovation Fund will focus on early-stage startups in the contactless sector that are growing by quickly launching products and services to meet rapidly changing lifestyles and business needs after COVID-19.

The TBT Post-Coronavirus Fund will have a four-year investment period and an eight-year term, with at least 60% of its capital invested in early-stage companies. Its central theme is an open innovation strategy that connects large companies seeking new growth drivers by bringing in external innovation with startups pursuing rapid growth and new business opportunities through collaboration with those companies.

The fund will primarily invest in startups founded within the past three years or with annual revenue of no more than KRW 2 billion. Target areas include: ▲B2B startups offering business-efficiency solutions that accelerate digital transformation ▲B2C startups providing services tailored to new habits in food, clothing, housing, mobility, education and entertainment ▲digital healthcare companies that protect people from viruses ▲companies driving manufacturing innovation in the post-COVID era ▲social enterprises that help people left behind by changes brought about by COVID-19.

“The shockwaves COVID-19 has sent through society are immense, but they may present startups with a major opportunity to grow,” said TBT co-CEO Jungwook Lim. “We will identify and invest in companies offering fresh products and services tailored to the changes of the post-COVID era, and support their global expansion.”