While Others Turned to China, AJU IB Investment Chose Boston... 19 Portfolio Companies Listed on NASDAQ [In-Depth Look at Major VCs] ⑦

First Korean VC Enters Boston in 2013
Nineteen Portfolio Companies Listed on NASDAQ
Conversion to Silicon Valley Affiliate and Entry as LP in Japan
Established First Dedicated AC Division Among Major VCs This Year

Editor's Note
A record amount of capital is flowing into the venture investment market. As the government's large-scale policy funds come into full operation, major venture capital firms (VCs) are rapidly scaling up. However, increasing the amount of money and managing it well are different challenges. In this special series, we present an in-depth analysis of market trends and Korea's leading VCs across 11 installments. We focused on firms ranked highest by assets under management (AUM), excluding those with a strong emphasis on private equity (PE). After a comprehensive overview of the market, we will examine each firm's growth trajectory, flagship portfolios, investment philosophy and decision-making structure, as well as key personnel and organizational culture.

In 2013, while the domestic venture investment industry was turning its eyes to the Chinese market, one firm boldly planted its flag in Boston—the heart of the U.S. bio and healthcare sector. To date, 19 of its portfolio companies have gone public on Nasdaq, and recently, it achieved a tenfold investment return on one exit. This first-generation Korean venture capital, AJU IB Investment, has made its mark.

As of the second quarter of this year, AJU IB Investment manages assets totaling 2.5485 trillion won, with cumulative AUM reaching 3.9936 trillion won. Its cumulative AUM in the VC segment alone is 2.1554 trillion won, and it is actively managing 1.3983 trillion won in VC assets across 16 funds. Its investment pipeline covers the full venture and capital markets cycle, from accelerating startups as an accelerator (AC), to providing growth capital as a VC, and leading M&A for mature companies through private equity (PE) funds—investing in all stages and sectors.

2013: The First Korean VC Enters Boston...Expanding to Silicon Valley and Now Japan

AJU IB Investment was the first Korean VC to enter Boston. At that time, most Korean VCs were heading to the booming Chinese market. Unlike others, AJU IB Investment focused on industry rather than geography, recognizing the prospects of a rapidly expanding bio and healthcare sector driven by demographic shifts. This led to the establishment of Solasta Ventures in Boston.

As the first Korean VC to move into Boston, sourcing independent investment deals proved challenging. Solasta Ventures, under local head Dongmin Yoon, adopted a localization strategy to overcome this. Yoon, who holds an M.S.F. degree from Boston College and an MBA from Babson College, previously managed healthcare portfolios at RBS and held venture acceleration roles at Berwind Private Equity. He built a team of local talent and established global co-investment networks with top VCs such as NEA, Novo Holdings, and Takeda Ventures. Solasta Ventures expanded its portfolio by participating in deal flows coordinated by leading foreign VCs.

Building on its East Coast experience, AJU IB Investment set its sights westward. In 2019, it opened Solasta Nexus, its Silicon Valley branch, and completed its conversion into a corporation this past June. While Boston is centered on bio, Silicon Valley focuses more on deep tech fields such as artificial intelligence (AI), robotics, aerospace, and cloud computing. The branch is led by partner Michael Jeon, who earned his BS in EECS from UC Berkeley, a master's in software engineering from Carnegie Mellon, and an MBA from MIT Sloan.

Last year, the firm participated as a limited partner (LP) in the Japanese VC market for the first time. Instead of investing directly in Japanese startups, AJU IB Investment committed capital to local funds, thereby gaining access to deal flows. This approach is similar to their early Boston strategy, where joining global VC syndicates enabled them to expand their portfolio.

'Spotting Early Talent': Early Entry into SpaceX...Fivefold Return from Pearl Abyss

AJU IB Investment’s most notable portfolio company is SpaceX, founded by Elon Musk. On Korea’s stock market, AJU IB Investment is regarded as a theme stock related to SpaceX. Prior to the SpaceX IPO, the company’s share price surged from 3,340 won on January 2 to 18,700 won by April 28 on heightened IPO expectations. After the IPO, on July 13, as SpaceX’s share price soared, AJU IB Investment’s share price also hit the upper limit, jumping 29.89% in a single day.

AJU IB Investment began exiting its holdings in the bio company Arcellx after its Nasdaq IPO in 2023. Through Solasta Ventures, it invested a total of 17.4 billion won (using the prevailing exchange rate at time of investment) in Arcellx, starting in 2019, and recouped 167.5 billion won—achieving an approximately 10x multiple. In February of this year, the acquisition of Arcellx by global pharmaceutical company Gilead Science for $7.8 billion spurred a surge in Arcellx shares, delivering further returns from disposal of remaining stock. On February 20, Arcellx’s stock price stood at $64.11, and following the M&A announcement, it soared to $113.75 on February 23—an increase of about 80%.

Other exits included an investment of 5.7 billion won in Kymera Therapeutics, resulting in a return of 64.1 billion won, and a 9.2 billion won investment in Atea Pharmaceuticals, bringing in 92.5 billion won.

Among domestic exits, game developer Pearl Abyss, creator of the MMORPG “Black Desert,” stands out. AJU IB Investment invested a cumulative total of 2 billion won in Pearl Abyss beginning in 2015, and recovered 11 billion won.

Selected as GP for National Growth Fund...Concerns over Nanoteam and Yanolja

The firm has also made its presence felt in the policy-driven capital market. AJU IB Investment was selected as a sub-manager (GP) in the small league of indirect investments in the National Growth Fund, overseen by Shinhan Asset Management, and received a 43 billion won commitment. Through this, it is now working to establish the “Aju Excellent Hyper-Gap Scale-Up 2.0 Fund,” targeting 200 billion won in new capital for the second half of this year. Having raised six funds totaling 741.8 billion won over the past five years—an average of around 150 billion won annually—the successful launch of this new fund is expected to further fuel the firm's scaling efforts.

In January of this year, the firm elevated its accelerator (AC) division to a headquarters, assigning dedicated early-stage investment professionals as well as consultants specializing in government-funded R&D projects. Kehun Park, head of VC investments, also serves as head of the AC headquarters. Among large VCs, AJU IB Investment is unique in establishing a separate headquarters organization for accelerators and putting significant emphasis on early-stage investments.

However, by investing across the entire company lifecycle—from seed rounds to post-IPO—there is a risk of accumulating unrealized high-quality assets. In particular, if share prices decline after IPO, the exit schedule may be delayed. Nanoteam, for example, in which AJU IB Investment invested in 2019, went public in March 2023 with an IPO price of 13,000 won, but as of July 20, share price had dropped to just 5,270 won.

Some IPOs have also been postponed. Yanolja, which received investment from AJU IB Investment in 2017, initiated an IPO push in 2020, but meaningful progress has yet to materialize. In 2021, Yanolja’s valuation set by SoftBank was 8 trillion won.

AJU IB Investment CEO Kim Ji-won has led the firm for over a decade since being appointed in March 2015. The company is recognized for maintaining the traditions of a first-generation house while steadily institutionalizing an end-to-end investment system and reinforcing its global local presence.

Kim commented, "The strong experience and know-how we have accumulated as a first-generation house are key strengths that help us overcome market volatility," adding, "We will continue to deliver outstanding results as an alternative investment specialist, striving to maximize returns for LPs and enhance value for shareholders."

<To be continued>

This content was produced with the assistance of AI translation services.