VCs’ overseas investments increase in Q1 despite COVID-19

Overseas investments by Korean virtual capitalist firms rose in the first quarter this year despite the COVID-19 pandemic, data showed May 7.

According to data compiled by Korea Venture Capital Association, carried out after surveying 30 investments abroad, worth a total of 104.9 billion won ($85.5 million). This compares with 40.6 billion won in 12 rounds of investments recorded the same period last year.

KB Investment allocated 54 billion won in five companies, while SoftBank Venture exercised four investments worth 15.4 billion won. Following these two companies were Mirae Asset Investment (6 billion won) and LB Investment (5.8 billion won).

However, the increase in the first quarter mainly reflects investment commitments made before the quarter, market experts said. So the real impact of COVID-19 on funding is likely to be seen in the second quarter as investors are strained from traveling abroad since February. VCs also expect adjustments to valuation due to the economic impact of COVID-19.

The total investment by domestic VC firms stood at 746.3 billion won in the first quarter, declining 4.2 percent on-year when the tally hit a record high. The number of companies that received investments also fell from 418 to 385 during the same period.

By Park Ga-young (gypark@heraldcorp.com)