Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - South Korea

South Korea

The country in South Korea is projected to reach a Total Capital Raised of €3.08bn in the Venture Capital market market by 2024.
In the same period, Early Stage is expected to dominate the market with a projected market volume of €1.99bn.
When compared globally, the United States will lead in Capital Raised, generating €126,700.0m in 2024.
South Korea's venture capital market is rapidly expanding, with a growing focus on tech startups and innovative industries driving investment opportunities.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

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Analyst Opinion

The Venture Capital market in South Korea has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in South Korea have played a key role in shaping the development of the Venture Capital market.

South Korean investors have shown a strong interest in technology and innovation, particularly in sectors such as e-commerce, fintech, and artificial intelligence. This preference for cutting-edge technologies has created a favorable environment for venture capital investments, as startups in these sectors often require significant funding to fuel their growth and development. In addition to customer preferences, market trends have also contributed to the growth of the Venture Capital market in South Korea.

The country has seen a surge in the number of startups and entrepreneurial activity in recent years, with many young and ambitious individuals launching their own businesses. This has created a vibrant startup ecosystem, which has attracted the attention of venture capitalists looking for promising investment opportunities. Furthermore, the government has implemented various initiatives and policies to support entrepreneurship and innovation, providing further impetus to the Venture Capital market.

Local special circumstances have also played a role in the development of the Venture Capital market in South Korea. The country has a strong culture of education and a highly skilled workforce, which has fostered a conducive environment for innovation and entrepreneurship. Additionally, South Korea is home to several world-renowned technology companies, which have served as role models for aspiring entrepreneurs and have helped to create a supportive ecosystem for startups.

Underlying macroeconomic factors have also contributed to the growth of the Venture Capital market in South Korea. The country has experienced steady economic growth in recent years, which has increased disposable income and created a favorable investment climate. Furthermore, low interest rates and a supportive regulatory environment have made venture capital investments an attractive option for both domestic and foreign investors.

In conclusion, the Venture Capital market in South Korea is experiencing significant growth due to customer preferences for technology and innovation, market trends favoring entrepreneurship and startups, local special circumstances that foster innovation, and underlying macroeconomic factors that create a favorable investment climate. As the country continues to prioritize innovation and entrepreneurship, it is expected that the Venture Capital market will continue to thrive and attract both domestic and foreign investors.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.