Korean VC Firm Daesung Private Equity Announces $83 Million Metaverse Fund
A Korean venture capital firm called Daesung Private Equity has announced that it will start a metaverse fund with 110 billion won ($83.5 million).
The fund, in which the Korean government will take part through the Korea Venture Investment Corporation's Korea Fund of Funds, is meant to invest in businesses related to virtual reality (VR) and digital twins.
Daesung Private Equity to Launch Metaverse Fund
Daesung Private Equity, a Korean venture capital firm, has decided to enter the metaverse investment field. On November 30, the company announced the formation of a metaverse-focused fund with a capitalization of 110 billion won (equivalent to $83.5 million).
The Korean state will participate in the "Metaverse Scale-Up Fund," which the company claims is Korea's largest private fund in the sector, with the help of the Korea Venture Investment Corporation's Korea Fund of Funds.
Daesung Holdings, Daesung Energy, and Daesung Clean Energy, which are all part of the Daesung consortium, also put in 60 billion won, which is close to $46 million. The Industrial Bank of Korea and Shinhan Capital are two other organizations that are part of the fund.
The company, which has a history of investing in private IT firms, is optimistic about the future of the metaverse and hopes to be the first to strike with this move. Daesung Group chairman Younghoon David Kim commented on this:
Metaverse is already considered to be an industry-wide game changer rather than being simply a newly emerging field. Through this fund, Daesung Group will hold a strategic leadership position in the growth of the metaverse.
South Korea and the Metaverse
According to a recent report from Deloitte, the metaverse market appears to be flourishing in Asia, where it is predicted that by 2035, the sector will contribute $1.4 trillion annually to the region's GDP. This is the largest fund of the 16 funds managed by Daesung Private Equity, holding 407.6 billion won ($312 million), as the company wants to gain the first-mover advantage.
The Korean government has also been investing money in the metaverse; as part of the Digital New Deal, a national tech-focused plan, they announced investments totaling $177 million in May. Korea was one of the first countries to invest directly in metaverse companies at the time.