The Ministry of SMEs and Startups on Friday announced plans to create a more diversified investment environment for venture capital (VC), aiming to increase invested funds by 8 trillion won ($5.6 billion). dollars) per year and to establish a public and private sector. funds of funds.
The “Measures to Create a Dynamic Venture Investment Ecosystem” plan was proposed at an emergency cabinet meeting on the economy on Friday. The aim of the plan is to ensure that investments in start-ups continue steadily and to attract more private capital into VCs.
To increase the flow of private capital and raise the average annual funds raised from 6 trillion won per year in the past five years to 8 trillion won per year by 2026, the Ministry of SMEs has proposed a package of support measures, including stronger incentives for VCs. that meet performance targets, expanding the rookie league category dedicated to small and medium-sized venture capital firms and easing regulations on M&A venture capital fund investments in listed companies.
A government-backed, private sector-led fund of funds will be established in a bid to attract more global funds, according to the SME ministry. Capital from the Middle East and Europe will be included in the global fund, broadening the focus of the United States.
Events for domestic VCs to showcase their portfolios to foreign investors will be sponsored by the ministry, and the ministry promised new measures to facilitate active networking between Korean and foreign VCs.
“The vitality of the venture capital investment market is directly linked to the growth of venture capital firms and start-ups that will lead the future of the national economy,” said SME Minister Lee Young. during a briefing held at TIPS Town in Gangnam District, west of Seoul. Friday.
BY LIM JEONG-WON [[email protected]]