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
An unprecedented amount of capital is flowing into the venture investment market. As the government's large-scale policy funds begin full-scale operations, major venture capital (VC) firms are rapidly scaling up. However, simply increasing funds and managing them effectively are two different matters. Over the course of 11 in-depth installments, we will analyze the flow of the VC market and leading domestic VC firms, selecting top houses by assets under management (AUM), but excluding those with a high proportion of private equity (PE). After providing an overview of the market, we will investigate each firm's growth trajectory, flagship portfolios, investment philosophy and decision-making structure, as well as key people and organizational culture.

Rather than waiting for new capital to flood the market, DSC Investment moved proactively to fill its coffers ahead of time.

In September of last year, when anticipation for 'policy funds' was at its peak—bolstered by the unveiling of the National Growth Fund's blueprint and a 23% increase in the startup and venture budget—DSC Investment launched its largest-ever fund-raising effort. The DSC Home Run Fund No. 2 was formed with total commitments of 347 billion won. This was seven months earlier than the end of April this year, when the government closed applications for the first round of National Growth Fund investments.

A DSC Investment official stated, "We anticipated that the expansion of policy funding would intensify investment competition, leading to increased valuations and greater difficulty in securing quality deals. That's why we focused on raising and deploying funds before competition became fierce. A good vintage ultimately depends on when and under what circumstances investments are made."

It Takes Longer to Hit a ‘Home Run’...Pursuing Early Exits

By concentrating their fundraising and deployment ahead of the full onset of funding competition, DSC Investment sought to invest in quality companies at relatively favorable prices and terms.

The contributors to Home Run Fund No. 2 include the National Pension Service, Korea Scientists and Engineers Mutual-Aid Association, Local Government Officials’ Mutual-Aid Association, Korean Teachers' Credit Union, Korea Federation of SMEs, and Industrial Bank of Korea. As of this month, about 40% of total committed capital has already been deployed.

The 347 billion won fund is allocated as follows: 60% to new shares, 30% to secondary investments, and 10% to others. As of this month, the proportion of pre-IPO, listed company, and secondary investments is about 35%. The most notable point is the high proportion of secondary investments. Most VC firms, including DSC Investment, have traditionally focused on primary investments in new shares.

An official from DSC Investment explained, "As IPOs and exits have become more challenging, the time required to achieve home run investments with multiples above five has lengthened. Our strategy is to recover principal early through secondary investments in years one to four after a fund’s formation, and then use this gained time to pursue home run investments in deep-tech and overseas Korean founder startups during years four to seven." For the same reason, over the past three years, DSC has shifted its investment criteria to include both primary and secondary deals. The proportion of off-market (secondary) sales in the past three years stands at 40%.

Dalba Global, a cosmetics company, is one such example. In 2024, DSC invested 13 billion won by purchasing existing shares, then, after the company’s listing on the KOSPI, sold the shares on the exchange and recovered 45.5 billion won. Unlike asset managers that establish dedicated funds solely for secondary investments and receive mature fund allocations, DSC Investment incorporates its exit strategy within a single fund.

Six Investments in Furiosa; Ten Years with Kurly

The most representative portfolio of the firm is FuriosaAI, an artificial intelligence (AI) semiconductor company. From the seed stage through Series D, DSC invested a total of 28.5 billion won in six separate rounds. For each stage of the company's growth, the follow-on investment decision was raised to the investment committee, allowing them to maintain or increase their equity stake. FuriosaAI's valuation has surpassed 3 trillion won, and on May 28, 2026, the National Growth Fund approved an 800 billion won investment in the company.

Notable exit cases include an 8 billion won investment in antibody drug developer ABL Bio in 2016, which was fully exited via market sales over six years for 105.6 billion won. In the case of Kurly, a 4 billion won investment made in 2015 was exited off-market this year after ten years, returning 29.7 billion won.

To date, nine funds have completed liquidation. The average net multiple is 1.8x, with a net internal rate of return (Net IRR) of 16%. The Global ICT Convergence Fund, which completed liquidation last month, recorded 25 billion won in total commitments and a payout of 60.5 billion won, achieving a net multiple of 2.4x and a Net IRR of 19%. This fund invested in ABL Bio, Carrisoft, and PCL. If the unrealized assets of four funds currently in dissolution are counted, DSC Investment projects an average net multiple of 2x and Net IRR of more than 17%. Home Run Fund No. 1, created in August 2022 with 248 billion won, is still in the early phase of exits.

Every Deal Is Reviewed by All Investment Managers...Anonymous Opinions and a 3/4 Majority Required for Approval

DSC Investment has four sector-specific divisions: Bio, Deep Tech, Consumer Tech, and Hybrid. However, investment decision-making is not segmented by division. Instead, all investment managers review every proposed deal together in what they call a "one-fund" approach.

The review process takes place in two stages. In the preliminary investment review committee, all investment managers, not just those responsible for the deal, participate and exchange opinions. Each participant submits their opinion anonymously to the CEO using a standardized form. Then, after a discussion between the investment lead and CEO, it is decided whether to present the deal to the main investment review committee. The main committee comprises four core management staff, including the lead fund manager, and a proposal is approved only if at least three-quarters of committee members are in favor.

A separate committee oversees exits. Every month, an exit strategy meeting is held to review exit candidates and trends in the secondary market before making a final decision. Notably, DSC Investment was the first in the industry to deploy full-time dedicated exit personnel from within the investment division. Compliance officers and risk managers continuously and independently monitor investment activities, separate from the investment division.

This structure is maintained by 16 investment managers, with each managing average assets of around 97.5 billion won. The company favors industry-experienced professionals when hiring. In 2021, an external consultancy was engaged to revamp the post structure, personnel appraisal, and incentive schemes. Except for one co-founder, the attrition rate of investment managers since the firm's inception has reportedly remained below 10%.

"You Can't Survive Without Being Crazy" — Mission Statement Redefined

In the past three years, DSC Investment has increased its investment in both global markets and deep tech. The sector allocation for Home Run Fund No. 2 is as follows: 28% computing, 27% new drug development, 13% AI and data applications, 7% physical systems and materials, 6% medical devices and diagnostics, and 5% healthcare. Deep tech accounts for 86% of the portfolio. Global investments represent about 40%, even though there are no overseas branches—a potential concern regarding portfolio balance.

Addressing this, a company official said, "There are cases where external observers see us as a 'deep tech house' because of the significant recent growth in the value of our deep tech portfolio. However, in reality, our portfolio is broadly diversified across bio-healthcare, mobility, robotics, consumer tech, and eco-friendly sectors." The official added, "Because investment decisions involve every investment manager, internal mechanisms are in place to check and balance judgments, even if perspectives on certain sectors become concentrated."

The company is also preparing to relocate its headquarters within the year. Last year, it bought the Seyo Building in Samseong-dong, Gangnam-gu, Seoul, for 50.5 billion won. DSC Investment stated, "Using the relocation to Samseong-dong as a launchpad, we plan to expand our deal-sourcing infrastructure and embark on full-fledged global investments."

CEO Yoon Geonsoo cited investment in office space as key to business competitiveness: "The notion that 'space shapes consciousness' is an important principle in business. Attractive workspaces are critical for attracting top talent and are the bedrock of creativity." Since acquiring its new building last year, DSC's mission, originally based on Dream, Shelter, and Charity, has been redefined as "Do Something Crazy." In Yoon's words: "These days, you simply can't excel at anything unless you throw yourself into it with a kind of madness."

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