Two years in the past, South Korea unveiled a plan to succeed in carbon neutrality by 2050. Getting there shall be one other story.
Although Korean producers say they’re attempting to vary their methods, the nation’s GDP is linked to some uniquely pollutive industries, together with petrochemical producers, automakers and shipbuilders. Although some companies could by no means be really sustainable, a enterprise agency in Seoul argues that rising climate-tech startups will assist massive producers do higher general.
Sopoong, a social impact-focused VC, intends to help environmentally minded tech founders in South Korea and Southeast Asia, whereas constructing a bridge between Korean conglomerates and startups within the sector. Sopoong has closed on round $8 million (10.3 billion gained) for its newest, sixth fund, bringing the agency’s whole belongings beneath administration to roughly $22 million (28 billion gained).
I spoke with Sopoong chief govt Max Sang-Yeop Han, a serial entrepreneur who joined Sopoong in 2016 and purchased the agency in 2019, to study in regards to the VC’s plans.
“It’s a important sign for giant South Korean corporates taking part as restricted companions of environmental and local weather tech-focused enterprise capitals like us,” Han stated. “Taking part LPs [Korean conglomerates] are enthusiastic about local weather know-how and need to participate to handle the local weather and atmosphere challenge as they agree that the local weather disaster is among the pressing issues.”
Korean petroleum refining firm GS Holdings and chemical firm Isu participated in Sopoong’s climate-focused fund as restricted companions, Han stated, including that they are going to be extra like strategic companions to Sopoong. Non-profit organizations reminiscent of Asan Nanum Basis, established by Hyundai Group, and D.Camp, in addition to startup founders and executives, together with the co-founder and former CEO of Krafton, Gang-Seok Kim, additionally joined Sopoong’s local weather fund, Han continued.
The early-stage VC had already arrange 5 social affect funds and backed 81 startups since 2020, after Han acquired the agency in December 2019. Sopoong was launched in 2008 by Jaewoong Lee, who co-founded South Korea’s largest web portal operator Daum Communication, which merged with Kakao in 2014.
Now, the VC agency desires to zero in on the local weather disaster and different environmental points by way of its sixth fund, however different tech sectors like SaaS and IT will nonetheless be on its radar, in line with Han. “Two-thirds of the fund shall be invested within the atmosphere and local weather tech, together with renewable power, agri-tech, and meals tech, and the remaining will go to the knowledge know-how trade funding,” Han stated.
Its candy spot is early-stage ventures from seed to sequence A levels throughout South Korea and Southeast Asia. Its common test dimension is $150,000, however the agency can go as much as $600,000, Han instructed TechCrunch.
The sixth fund has already invested in 16 startups, together with MetaTexture, a plant-based meals startup; Selex, a Vietnam-based electrical scooter and battery-swapping know-how startup; Myorange, a platform for managing charitable donations; and Operate 12, an automation device that helps customers full coding and design recordsdata.
9 of the 16 portfolio corporations are taking part in Sopoong’s first accelerator program, which launched in June and runs for six months. Sopoong invests as much as $350,000 into every startup through the accelerator program and provides mentorship, co-working area, administrative help and networking alternatives with specialists.
On high of the accelerator, the agency additionally launched a six-month fellowship program to foster local weather tech entrepreneurship. To this point, Sopoong says it has chosen 13 people with grasp’s or doctoral levels in environment-related majors, providing them $1,700 in grants per thirty days and different help, together with the accelerator program. If taking part fellows achieve founding a startup, Sopoong may make a seed funding, Han stated.
