Investing Ahead of the Curve... DSC Investment’s ‘Home Run’ Swing [Major VC In-Depth] ⑧

Fund Established at the Peak of Policy Fund Expectations

"Identify Quality Companies Before Valuations Rise"

Nine Funds Liquidated with an Average 1.8x Return

"All Investment Professionals Participate in Decision-Making"

Editor's Note
A record amount of capital is being injected into the venture investment market. As the government ramps up large-scale policy funds, the size of major venture capital (VC) firms is also rapidly scaling up. However, increasing available funds does not automatically guarantee their effective management. In this series, we provide an in-depth analysis of the trends in the VC market and Korea’s leading VCs through 11 installments. We selected top houses based on Assets Under Management (AUM), excluding those with a high proportion of private equity. After providing an overview of the market, we examine each firm’s growth trajectory, representative portfolios, investment philosophy, decision-making structure, key personnel, and organizational culture.

DSC Investment did not wait for upcoming liquidity in the market; instead, it proactively secured its funding in advance.

In September last year, at the height of expectations for 'policy funds' as the National Growth Fund blueprint was announced and startup·venture budgets rose by 23%, the company launched its largest-ever fund. This was the DSC Home Run Fund No.2, with a total commitment of KRW 347 billion. This was seven months earlier than the end of April this year, when the government closed applications for the first phase of the National Growth Fund.

A representative from DSC Investment explained, “We judged that as policy capital expands, investment competition would intensify, leading to higher valuations and greater difficulty securing quality deals. That’s why we focused on aggressively raising and deploying our fund before competition fully heated up.” According to the company, “Good vintage ultimately depends on when and in what environment the investment is made.”

The time to a 'home run' has grown longer... Moving toward earlier exit strategies

By concentrating on fund formation and execution before the funding competition intensified, DSC Investment believed it could invest in quality companies at relatively attractive prices and terms.

The Limited Partners (LPs) of Home Run Fund No.2 include the National Pension Service, Korean Scientists and Engineers Mutual Aid Association, Local Government Officials' Pension Service, Korea Teachers’ Pension, Korea Federation of SMEs, and IBK Bank. As of this month, about 40% of the committed capital has already been deployed.

Of the KRW 347 billion, 60% is allocated to new shares, 30% to secondary investments, and 10% to other assets. As of this month, pre-IPO, listed company, and secondary investments account for 35% of the portfolio. The significant aspect is the proportion of secondary investments. While DSC Investment and most other VCs traditionally focus on early-stage equity investment in new shares, the company has noticeably shifted its strategy.

The DSC representative said, “As listing and exit conditions have become increasingly challenging, the timeline for achieving a home run—defined as a multiple of five or more—has grown longer. Our strategy is to recoup our principal early via secondary deals within the fund’s first one to four years, then use the gained time to pursue home run investments in deep tech and overseas Korean-founded startups between years four and seven.” For the past three years, the company has broadened its investment criteria to include both new shares and secondary shares. The portion of off-market (over-the-counter) exits in the portfolio reached 40% over the last three years.

Dalba Global, a cosmetics company, falls within this investment track. In 2024, DSC invested KRW 13 billion by acquiring existing shares and subsequently recouped KRW 45.5 billion via on-market sales after the company’s listing on the Korea Exchange. Unlike operators who create separate funds for secondary investments to take on the holdings of maturing funds, DSC Investment integrated the exit track within a single fund.

Six rounds for FuriosaAI, a decade for Kurly

The flagship portfolio for the house is FuriosaAI, an artificial intelligence (AI) semiconductor company. DSC invested KRW 28.5 billion over six rounds from the seed stage through Series D. At each stage of the company’s growth, the investment committee reviewed whether to make follow-on investments, maintaining or increasing their equity stake. FuriosaAI’s valuation has surpassed KRW 3 trillion, and on May 28, 2026, the National Growth Fund approved an investment of KRW 800 billion in this company.

Representative exit cases also include ABL Bio, an antibody drug developer. In 2016, DSC invested KRW 8 billion, and through on-market sales up to 2022, recouped KRW 105.6 billion. For Kurly, they invested KRW 4 billion in 2015 and, after 10 years, exited through an off-market sale for KRW 29.7 billion.

Nine funds have completed liquidation. The average net multiple is 1.8x, with a net IRR of approximately 16%. The Global ICT Convergence Fund, liquidated last month, recorded KRW 25 billion in commitments and KRW 60.5 billion in distributions, resulting in a 2.4x net multiple and a 19% net IRR. This fund invested in ABL Bio, CarrieSoft, and PCL. If the valuation of unrealized assets in four funds currently in the liquidation phase is factored in, DSC Investment expects to achieve an average net multiple of 2x and a net IRR of over 17%. The Home Run Fund No.1 (KRW 248 billion), launched in August 2022, is still in the early stages of the exit cycle.

Every deal reviewed by all investment professionals... Anonymous feedback, three-quarters approval required

DSC Investment has four dedicated divisions—for bio, deep tech, consumer tech, and hybrid sectors—but does not separate investment decision-making by division. All investment professionals participate in every investment decision using the ‘one-fund’ approach.

The investment review is a two-stage process. In the preliminary investment review committee, not only the lead reviewer but all investment professionals participate, share opinions, and submit their individual, anonymous feedback to the CEO using a standardized form. Afterward, the lead reviewer and CEO decide whether to submit the deal to the main investment review committee. The main committee consists of four core management members, including the lead fund manager, and at least three-quarters must agree for a deal to be approved.

There is also a separate committee for exits. Each month, the exit strategy meeting reviews exit targets and market information, making final decisions thereafter. Employing dedicated full-time exit staff from the investment division was a first in the industry. The compliance officer and risk manager independently conduct real-time monitoring, separate from the investment division.

This structure is operated by 16 investment professionals. Assets under management per person stand at about KRW 97.5 billion. Recruitment emphasizes hiring professionals with direct industry experience. In 2021, external consultants revamped the titles, performance evaluation, and incentives, and, except for one co-founder, the turnover rate for investment professionals since founding remains below 10% by all accounts.

“You can't endure without going a little crazy”—even redefining the mission

Over the past three years, DSC Investment has expanded its allocations to global investments and deep tech. The sector allocation for Home Run Fund No.2 is 28% computing, 27% drug development, 13% AI and data applications, 7% physical systems and materials, 6% medical devices and diagnostics, and 5% healthcare. Combined, deep tech investments account for 86%. Global investment represents about 40%, even though the company has no overseas branches—raising concerns about portfolio imbalance.

Regarding this, a company representative stated, "As the valuations of our deep tech portfolio companies have been rising sharply, some outsiders characterize us as a 'deep tech house.' However, our actual portfolio is broadly diversified across bio·healthcare, mobility, robotics, consumer tech, and eco-friendly sectors." The representative also added, “Because all review professionals participate in investment decisions, there are internal safeguards allowing for effective checks and balances if judgment becomes overly concentrated on any single sector.”

The company is also preparing to relocate its headquarters within the year. Last year, it acquired the Seyo Building in Samseong-dong, Gangnam District, Seoul, for KRW 50.5 billion. DSC Investment stated, “With the move to Samseong-dong, we will expand deal sourcing infrastructure and accelerate our global investments.”

CEO Yoon Geonsoo said the reason for investing in office space is that “the saying ‘space governs consciousness’ is an important maxim in business competitiveness.” He sees it as both a key for attracting exceptional talent and the foundation for creativity. Derived from ‘Dream,’ ‘Shelter,’ and ‘Charity,’ the company’s name became ‘Do Something Crazy’ starting last year when it purchased its own headquarters. “These days, unless you’re obsessed with something, you can’t really succeed at anything,” said CEO Yoon.

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