funds liquidated from 2021 to 2023 is around 10%. It is said that the return on

[04/14 Venture Business News]

*No. 1.. GPs selected for the parent fund will run to Gyeonggi-do. It seems that the selection of 43 GP selection companies or growth finance is a condition for support. lol The G fund created by Gyeonggi-do has an investment of 20.5 billion won

*Number 2.. Among the 54 listed companies listed in '21~'22, one company is said to have recorded a net profit. Recently, the difficulties such as monthly reports have been prolonged due to the CQletter and Padu. Neo-Eminutech suggested a surplus of 18.8 billion won last year, but in fact, it had a net loss of 53.4 billion won, while Bio-company ABION, which went public in 2021, had a net profit of 314.8 billion won last year, but estimated a net loss of 29.2 billion won, and Pungwon Precision, which went public in 2022, estimated a profit of 48.6 billion won, but recorded a net loss of 21.8 billion won last year, and Ad Biotech also reported that its expected net profit (a surplus of 13.4 billion won) was larger than the actual profit (a net loss of 5.4 billion won).

*No.3.. The Bell mentioned the US LLC type while explaining the structure of We Ventures. The partner establishes the SPC as a GP commitment, and the SPC and LP create a fund together. Performance/operating remuneration falls to SPC, which means that SPC can receive dividends or paid capital reduction to avoid earned income tax.…? I forgot the U.S. tax law. S-stock, LLC type LLP, partnerships, etc. are not subject to corporate tax, but personal income tax, and I would like to write a novel about this. I heard that double taxation is the reason why it is difficult to take such a picture in Korea. Due to the Corporate Income Tax Act, SPC also receives dividends from corporate tax, SPC, or VAT on capital gains tax. There is usually no VAT on fund management, but I think it would be different if it were SPC… PEs are exempt if they register something when they invest, but I'm not sure about SPC Kason.) It's impossible because of the double taxation problem..

*Number 4.. I often see VC associations making love calls to retirement pensions these days. By the way, it should be noted that the average return on venture funds liquidated from 2021 to 2023 is around 10%. It is said that the return on liquidation of 74 funds in 2022 is 9.8%, and 70 in 2023 is 9%. The sudden question is, this return on liquidation is not IRR, right?

*Number 5… Korea Credit Data, a cash note developer, reportedly saw its sales more than double, reaching 138 billion won from 64.8 billion won. The operating loss ratio also decreased by about a third from 48% to 16%. Just to add a word. In terms of individual financial statements, Korea Credit Data's sales decreased by 50 million won, accurately, from 4.6 billion won to 6.5 billion won, and its net loss decreased from 36.9 billion won to 36.8 billion won. In the consolidated division, the Korea Settlement Network, which was acquired by investing 94 billion won in 23, recorded sales of 98.2 billion won in 2023 and 98.1 billion won in net profit of 3.7 billion won in 24. I'm You, which invested 18.2 billion won in the same year in 23, saw its profit deteriorate from 31 billion won in sales (net profit of 3.7 billion won) in the previous year to 32.7 billion won in net profit of 2.1 billion won in 2023. The encouraging part is that Korea F&B Partners, which was originally a subsidiary, grew from 7.8 billion won in sales (net loss of 2 billion won) to 22.6 billion won (net loss of 3 billion won)  

*Number 10.. Samsung Management and Future Management are the overwhelming number 1 and 2 in the asset management industry. The scale is 86.2696 trillion won and 80.1651 trillion won, respectively, which is twice that of KB Asset Management (34.6883 trillion won), and the number of employees is almost the same. The three of them... When I was applying, Samsung Asset Management received funds from Samsum Life Insurance and was 60 trillion won, but the recent rapid growth is due to ETFs. If you have any, it would be good to understand the management company when receiving the investment. Share!

1) VC, which received investment from the parent fund, runs to Gyeonggi-do Province
According to the VC industry on the 10th, a large number of VCs selected as consignment managers (GPs) of the parent fund were reportedly listed in the second evaluation conducted by Gyeonggi Province on the 11th to select G-fund managers. The parent fund will invest 446.3 billion won in the investment project, and the minimum size of the standard is 783.5 billion won. Excluding the investment amount of the parent fund, a considerable amount of 367.5 billion won should be collected within three months. The Gyeonggi-do G-Fund is an investment association created by Gyeonggi-do Province to expand investment opportunities for small and medium-sized venture companies in the province. The province has set aside 10.5 billion won in G-fund budget this year, and the Gyeonggi-do Economic Science and Promotion Agency has invested 10 billion won in the parent fund. The main purpose is to create funds in the field of future growth ▲ Start-up ▲ Carbon Neutral ▲ Future Growth. The target amount is 150 billion won. By category, Carbon Neutral Fund No. 2 plans to invest in ▲Green New Deal ▲ New and Renewable Energy and Low Carbon Green Growth ▲ Korea's top 100 carbon neutral technology companies. Start-up funds plan to raise a total of 10 billion won, including 2.5 billion won in provincial investments, to invest in companies (within 10 years in new industries) within 7 years of their foundation. Future growth funds 4 to 6 will be created with a total of 100 billion won, including 10 billion won investment from the parent fund to invest in companies in the field of ▲ artificial intelligence (AI, big data, cybersecurity, networks, next-generation communication, etc.) ▲ bio (bio, digital healthcare, medical devices, etc.) ▲ semiconductors (system semiconductors, semiconductors, display equipment, etc.).

2) "Romantic Prospects" Explosive Special Technology IPO... All but one are underperforming
Companies listed under the special technology listing system, which was introduced to support innovative companies' listing on the KOSDAQ, are experiencing problems one after another. Secure Letter and Padu listed under the system have become the subject of controversy due to their overblown performance. According to the Korea Exchange on Tuesday, a total of 54 companies were listed on the KOSDAQ market using the special technology listing system from 2021 to 2022. However, most companies listed under the system failed to meet the performance value they offered. Of the 54 companies listed through the special technology listing system, 48 companies disclosed their performance last year. Of the 48 companies that disclosed their performance, only one company, PureTier, had a net profit exceeding its pre-listed expectations last year. Neo-Eminutech, the second company to be specially listed in foreign countries, recorded a net loss of 53.4 billion won last year, a big difference from its pre-listed projections (18.8 billion won surplus). Bio-company ABION, which was listed in 2021, had expected to post a net profit of 314.8 billion won last year, but actually recorded a net loss of 29.2 billion won. Pungwon Precision, which was listed in 2022, had a net loss of 21.8 billion won last year, but had an estimate of net profit of 48.6 billion won before its listing. In addition, Ad Biotech's expected net profit (surplus of 13.4 billion won) was much different from the actual profit (net loss of 5.4 billion won). The number of listed companies with special technology increased to account for 42 percent (35 companies) of the total 82 companies listed last year. The government intentionally lowered the threshold for listing in order to help start-ups raise funds and facilitate venture capital (VC) to recover their investments. However, the need for reorganization is emerging due to controversy over the securities letter and papa. The Financial Supervisory Service, the Korea Exchange, and securities firms formed a Task Force team last year to draw up an improvement plan for IPO at the end of this month. The improvement plan will reportedly include a plan to pay prepayment fees to securities firms and a plan to set selection criteria for each securities firm's own public offering.

3) "Company Is a Platform" How We Ventures' "Shop-in-Shop" Operates… What is the difference from the US LLC?
The Bell reported on We Ventures' LLC structure, explaining in detail the difference between the US LLC type VC and the domestic LLC type. In the United States, it is common to establish an LLC-type venture capital company and a special purpose corporation (SPC) in the form of LLC or Limited Liability Partnership (LLP) when raising funds. The partner who creates the fund also invests in the SPC, and the SPC invests this money in the fund along with the LP. The SPC becomes a GP, the invested partner reviewer manages the fund, and the SPC receives performance/management fees. Like the US, the performance/management fee is paid as a dividend to partners who participate in the fund's management, and the earned income tax is not paid. In contrast, in Korea, even if it is an LLC-type VC, a 'venture capital company' is in charge of the fund's GP. Unless a house operates a single fund, it is no different from existing venture capital companies in the formation and management of the fund. LPs' investment judgment is also naturally focused on the company, not the review area. As many fund management performances are mixed, it is not easy to allocate in this way. Therefore, in most cases, the remuneration is set by evaluating the contribution. However, CEO Ha Tae-hoon sought to differentiate himself by operating We Ventures in this way. He knew better than anyone else that judges face concerns about independence when they become seniors. He created this operating structure to create an environment where people can gain strong motivation and responsibility without having to become independent.

4) Venture Fund 'High Risk' Prejudice…In fact, it's "low risk, high return."
Venture funds are regarded as risky assets outside the venture capital industry. However, some argue that they record stable returns, contrary to this prejudice. Recently, Yoon Soo-soo, president of the VC Association, said, "There is a concern about how to invest in risky assets with severance pay. The rate of return of parent funds is around 7%, which is safer and higher than any other financial product in Korea." According to the Korea Venture Capital Association, the average rate of return of venture funds liquidated from 2021 to 2023 is around 10%. In 2021, a total of 50 funds were liquidated, recording an average rate of return of 12.5%. In 2022, it liquidated 74 funds, showing an average rate of return of 9.8%. Last year, the average rate of return of 70 funds was 9%. Compared to the rate of return of retirement pensions, venture funds are highlighted as high-yield products. According to the "2022 Retirement Pension Accrual Analysis and Management Status Analysis" released by the Ministry of Employment and Labor and the Financial Supervisory Service in July last year, the rate of return on retirement pensions is decreasing every year. The annual rate of return from 2.58% in 2020 decreased from 2% in 2021 to 0.02% in 2022. "The rate of return of retirement pensions is lower than the inflation rate, so profitability needs to be improved," a venture capital industry official said. "Retirement pensions are similar to venture fund management as they have a relatively long investment period."

5) KCD, the developer of 'Cashnote', has 138 billion won in sales last year...It has doubled from the previous year
Korea Credit Data (KCD) recorded 138 billion won in consolidated sales last year compared to the previous year (64.6 billion won)