Unexpected speed of climate change is serious
Only 14% of global VCs invest in climate tech
Sopoong Ventures created a 10 billion won fund
The slogan of ‘ACT ON CLIMATE CRISIS’ is also participated by the second generation of ventures such as Ja-young Yoon and Kang-seok Kim.
An investment association that invests in climate technology startups dealing with the climate crisis was born. The Fellowship Program will be launched for the first time in Korea to foster climate technology entrepreneurs while providing subsidies to talented people with masters and doctoral degrees in climate and environment fields.
Sopoong Ventures, an impact investment company, announced on the 22nd that it will focus on investment in startups that research and develop technologies to respond to climate change. Sopoong Ventures said, “It is the first time in Korea that a venture capital company will declare that it will focus on Gifu tech investment.”
The climate crisis has become serious, threatening all directions, including the economy and health… Experts “We need to develop climate technology”
The climate crisis has already become a big problem facing not only our society but also human society. The 6th Assessment Report Working Group 2 report released in February by the UN-affiliated Intergovernmental Panel on Climate Change warned that climate change is faster and more serious than expected. Due to climate change, there are growing concerns about a decrease in the yield of agricultural and fishery products and an increase in floods, storms, and natural disasters, and substantial threats to food, economy, and health are increasing.
According to the Paris Agreement in 2015, the world has decided to achieve carbon neutrality by 2050, and Korea has also set carbon reduction goals and action plans through the carbon neutral scenario announced last year. International organizations and experts emphasize that the development and cultivation of climate technology is essential for carbon neutrality. However, only 14% of the global VC investment is still invested in Gifu Tech. In Korea, there are no related statistics.
Sopoong Ventures Announces Climate Fund and Entrepreneur Development Plan… Participating in the ‘second generation of ventures’ such as Ja-young Yoon and Kang-seok Kim
Sopoong Ventures will run three tracks named ‘Impact Climate’ under the slogan ‘ACT ON CLIMATE CRISIS’ from this year. First, in early April, the ‘Impact Picnic No. 2 Investment Association’, a financial source to invest in Gifu Tech startups, will be formed. The fund will be formed with a total size of 10 billion won. There is a possibility that it will be worth more than 10 billion won depending on the recruitment of investors within this year, and it is a fund that is created only with 100% private funds.
Sopoong Ventures plans to invest more than 50% of the funds funds in Gifu Tech startups. They mainly invest about 100 to 500 million won in early-stage startups in Korea. Investment fields include renewable energy, agri-food, and the circular economy. They are mainly looking for technology-based startup teams that can mitigate climate change or help adapt to climate change. It also opens up the possibility of investment in other impact fields that will create synergy with Gifu Tech and overseas startups.
This fund adds meaning to the participation of entrepreneurs of the second generation of ventures, founded around 2010, as investors. Styleshare founder Ja-young Yoon and Krafton co-founder Kim Kang-seok, former CEO of Krafton, will invest in the picnic climate fund.
An official from Sopoong Ventures said, “The biggest problem facing our society is the climate crisis, so all the investors agreed that we should nurture younger entrepreneurs in the climate tech field.” “The most active ESG practice is impact investment.” We did it together,” he said.
Discovering climate majors and nurturing them into entrepreneurs… “First attempt in Korea”
Sangyeop Han, CEO of Picnic Ventures
Second, Sopoong will start the ‘Impact Climate Fellowship’ program to foster Gifu Tech entrepreneurs in April. It is a program that recruits and educates around 50 people who major in technology in the climate and environment fields and experiences in entrepreneurship and management, and then selects some with the will to start a business as fellows and builds a company as a climate tech startup.
The company plans to provide a start-up subsidy of 2 million won per month during the 8-month training period so that they can concentrate on preparing for a start-up. It is also planning to provide close mentoring and offices for excursion partners with experience in starting a business and exit, such as tutoring co-founder Choi Kyung-hee and Tumblbuck founder Yeom Jae-seung. If the startup is successful, Sopoong makes seed investment and connects VC follow-up investment.
An official from Sopoong Ventures said, “As a result of investigating the current status of Gifu Tech startups, it was determined that it would be difficult to quickly and sustainably solve the climate problem by only investing in existing startup teams. Im looking forward to it,” he said.
Third, Sopoong will launch the “Impact Climate Accelerating Program” next month to accelerate the growth of climate-related startups. It provides expert consulting and opportunities to attract VC investment to startup teams with technologies or business models to respond to climate change. We are currently recruiting teams to participate, and more information can be found on our website.
Sang-yeop Han, CEO of Sopoong Ventures, said, “As an impact investor, we decided that we could not postpone our investment in climate issues any longer, and I saw that the investment value was rather high as there were very few climate technology startups in Korea. We will do our best to nurture individual teams as well as the overall related industry.”