Twelve Labs, a South Korean startup specializing in AI-based video analysis technology, secured $50 million in early-stage funding earlier this month. This funding round attracted significant attention due to the involvement of Nvidia, a global leader in the AI industry. Notably, this is Nvidia’s first investment in a Korean startup. Nvidia had previously invested $10 million in Twelve Labs alongside Intel and Samsung in October last year and has now increased its investment.
Beyond Twelve Labs, several South Korean startups have been drawing international investments this year. This achievement is particularly impressive given the challenging startup investment environment due to high interest rates. According to statistics from Startup Alliance Korea, South Korean startups secured 44 global investments in the first quarter of this year. This figure is more than double the 21 investments in the previous quarter and represents a more than 50% increase compared to 29 in the same period last year. Deep tech and software-as-a-service (SaaS) companies with foundational technologies that are easy to integrate into foreign markets or other industries are particularly attracting global investors’ attention.
The diversity of South Korean startups securing international investments is noteworthy. Lion Rocket, a startup developing AI technology for webtoon production, and Travel Wallet, a fintech company specializing in payment services for overseas travel, both recently received investments from prominent Silicon Valley venture capital firms. While the investment amounts were not disclosed, the reputation of the investors garnered industry attention. Travel Wallet was funded by Lightspeed Venture Partners, the sixth-largest investment firm globally managing $35 trillion, making its first investment in a Korean company. Millennium New Horizons, which has invested in Mistral AI, often referred to as the OpenAI of Europe, and Elon Musk’s xAI, invested in Lion Rocket.
It’s not just American investment firms getting involved. Gopizza, a food tech company operating a pizza franchise, recently received a $10 million investment from the distribution subsidiary of Thailand’s largest conglomerate, CP Group. Gopizza has expanded to seven countries, including India, Singapore, and Indonesia, with more than 450 stores and has been establishing branches and subsidiaries in Thailand since December last year.
Investors in South Korean startups now come from a variety of countries. Travel startup My Real Trip secured 75.6 billion won from U.S. and French investment firms in January. Point2 Technology, a high-speed communication solutions company, raised approximately 32 billion won from Germany’s Bosch Ventures, and AI education company Elice received 20 billion won from Vertex Growth, a subsidiary of Singapore’s sovereign wealth fund.
For international investment firms, the primary motive is often strategic investment rather than financial investment for profit. Mohamed Siddeek, head of NVentures at Nvidia, who led the investment in Twelve Labs, stated, “Twelve Labs’ video understanding technology is a key component of generative AI, and combined with Nvidia’s AI accelerators, it will satisfy corporate clients.” An industry insider noted, “Global companies are interested in South Korean startups because they have high technological capabilities but relatively lower valuations compared to U.S. startups.”
