SEOUL, July 28 (Korea Bizwire) – Thanks to a series of government support measures for new ventures and startups, investment in venture firms soared nearly 40 percent in the first half of 2015 compared to the same period in 2014.
According to the Small and Medium Business Administration (SMBA) on July 27, a total of 956.9 billion won in funds were invested in venture firms in the January-June period, a 38.4 percent jump from last year’s 691.2 billion won.
The number of venture firms that attracted investment also increased to 517, or an increase of 23.7 percent over the 418 in the same period last year.
The portion of the investment in venture companies that are less than 7 years old increased to 56.7 percent from 49.1 percent in the last 12 months, a reflection that investors have begun to show interest in fresh startups and their business prospects.
By sector, some 260 billion won was invested in software, mobile and IT in the first half, with 157 billion won going to e-commerce and wholesale-related ventures. The two sectors combined received 70 billion won more than last year. However, investment in the culture content sector like films and gaming decreased slightly to 182 billion won in 2015 from 192.4 billion won in 2014.
In the first half of the year, 625.6 billion won worth of new venture funds were created.
An official at the SMBA said, “If it the rapid growth in venture investment this year is maintained, the cumulative amount is expected to record a new high, surpassing the 2.2 trillion won recorded in 2000, and launching a second venture boom.”
By Kevin Lee (email@example.com)