The midterm building creates an average of 8 trillion won in venture fund ecosystems. Over the past five years, the average annual average of 6 trillion won. In addition, a new Global Unicorn Project Fund will be created, which will invest large-scale investments in a specific startup that is likely to grow into a unicorn company (a non-listed company with a market value of KRW 1 trillion).
The midterm department announced on the 4th that it has established and announced a plan to create a dynamic venture investment ecosystem. This plan is part of the follow-up measures of the 11th Emergency Economic Council held on October 27. In this plan, the midterm will establish and implement four strategies and 12 tasks to promote venture investment.
■ Strategy 1: Vitality to the venture investment market in response to economic uncertainty
▲ Strengthening Investment Investment Investment Investment (Task 1) : A venture fund manager who achieved investment targets through rapid investment execution (a fund manager who formed a fund with a government-funded fund investment) Incentives such as additional management fees, preferential performance payments, and additional points when selecting a fund-fund investment project will be given. In addition, the more the funds are invested from the beginning of the fund, the more management will be paid.
▲ Support for the formation of small and medium-sized VC funds: Rookie League, a new or small and medium-sized venture capital fund for new or medium-sized venture capital, which is difficult to recruit recent investors, expands the rookie league (a new fund for new or small and medium-sized venture capital). Small and medium-sized funds support the formation of funds by increasing the rate of investments in the fund policy.
▲ Vitalization of the midterm recovery market: Rich funds of private equity funds will be introduced into the venture fund to enable the intermediate recovery market. The government will establish a government-funded fund investment project for private equity funds that invest in a secondary venture fund (a fund that purchases the savior of start-up and venture companies owned by other venture funds or trades existing investors). In addition, if private equity fund invests in start-ups and venture companies through venture fund investments, it will also be considered to be taxed by private equity investors’ shares.
▲ Improvement of M & A regulations: M & A Venture Fund’s listing regulations (up to 20%) and allow the establishment of a special purpose company (SPC) of M & A Venture Fund to acquire effective venture and startups · To promote the merger.
■ Strategy 2: Creation of private venture funds to expand domestic private capital inflow >
▲ Foundation for creation of private venture funds: Private venture funds are private venture funds (Fund of Funds), which are funded by private investments without investing in policy financing (government funds) and invested in venture funds (self-funds) Say. In addition to the policy funds, the global venture developed countries are operating the private funds to actively introduce private capital.
According to a prequel survey last November, 22 private folk funds operated by seven countries, including the United States, China, Canada, the United Kingdom, and Germany. Private venture funds are operated by large venture capital with fund management ability and investment expertise. In addition, it is possible to configure a profitable portfolio and has the advantage of distributing investment in many venture funds.
The government has been able to promote the creation of private venture funds, exemption from the corporate tax deduction of corporate investors and income deductions of individual investors, exemption from VAT for the management and service of funds by Mo fund managers Promote tax incentives.
▲ Clearly established functions between ‘private venture funds’ and ‘government-based funds’: Private venture funds are focused on areas with high demand for private investment and profitability, while government fund funds are youth startups, women’s companies, early start-ups The company plans to support areas with high need for policy support such as market under-investment areas such as companies and the supervision industry.
■ Strategy 3: Expansion of global capital attraction
▲ Support for attracting overseas capital and global expansion of promising startups: The global fund, which is being created by the government funds with overseas venture capital, will be expanded to more than 8 trillion won by the end of next year. The cumulative 4.9 trillion won in late 2021. In addition, the company will expand the scope of construction from the center of the United States to the Middle East and Europe, expanding the opportunities for global startups to enter the global market.
▲ Strengthening global network between overseas and domestic VCs: We will strengthen global networks between domestic and foreign venture capital by promoting portfolio IR introducing companies invested by the domestic venture capital industry to overseas investors. The company will also dispatch a startup for overseas expansion and establish and operate the ‘Global Jump-UP Program’, which supports networking with existing overseas companies and overseas venture capital.
▲ Promising startup large-scale overseas investment support: A new ‘Global Unicorn Project Fund’, which will be a subsequent investor in a specific startup that is likely to grow into a unicorn company. The fund is designed by overseas investors and government fund and operated by excellent venture capital firms overseas.
■ Strategy 4: Introduction of advanced venture finance techniques
▲ Introduction of conditional equity transition contract: Introducing various venture financial techniques to provide startups with a wide range of financial support. Introduce Convertible Note. The loan is first executed to startups, and the company’s value is issued after the corporate value is confirmed by attracting investment. It is easy to attract investment for startups, and investors can guarantee principles, making it widely used for early startups in Silicon Valley.
▲ Introduction to Investment Loan System: Introducing the ‘Venture Debt’, which receives a low loan to financial institutions to resolve the financial institution to resolve the financial institution until the startup receives a subsequent investment. Do. Financial institutions borrow loans at low interest rates as collateral for startups’ right to acquire new stocks, and if startups attract subsequent investments, they are repaid by loans. It is expected that the demand for ultra-mid-term startups is expected to be high with a mix of investment and loans, the midterm said.
▲ Venture Fund Leverage Follow-up Investment: Venture Fund allows you to establish a special purpose company that can borrow financial institutions, and enables large-scale subsequent investments using borrowing resources and capital. Support
Lee Young-young said, It is to foster the future growth engine of our economy by supplying sufficient growth funds to venture and startups even for the economic slowdown. And two engines, ‘Private Venture Mo Funds’, plans to dynamically grow the venture investment ecosystem.
In the meantime, the government has strengthened the link between the poor venture investment market and the private equity market, and the government policy has become a bridge to revitalize the intermediate recovery market of venture investment. The vitality of the venture investment market is directly linked to the growth of venture and startups, the future of our economy. Private capital is self-introduced, and global capital actively invests in our venture and startups. The midterm will not spare support so that it can be.
The midterm has established 12 projects for the dynamic venture ecosystem because of the recent deterioration in the economic conditions of internal and external economic conditions such as high-rate, high prices, and high interest rates. Venture investment, which has been growing until the second quarter of this year, decreased significantly in the third quarter due to the postponement of investment execution due to the economic slowdown.
In the meantime, small and medium-sized venture capital is having difficulty forming funds, and it is difficult to virtually cycle ‘venture investment, recovery-reinvestment’ due to the performance of promising venture and startups due to the falling stock market. In addition, the government’s financial support has led to a growing venture ecosystem, but it is judged that private capital lacks the foundation of its own fluid in the venture investment market.
In addition, the structural limitations of the venture investment ecosystem are still stagnant, such as stagnating the inflow of global capital, which can help domestic startups enter overseas markets. The government said, The government supports the promotion of investment so that growth funds can be supplied to startups even though the economic slowdown prospects are provided, while promoting measures to grow dynamically by expanding private capital inflows based on the accumulated capabilities of the venture investment ecosystem. I do it.