1 00:00:00.000 --> 00:00:01.050 Welcome 2 00:00:01.500 --> 00:00:05.350 Today we are pleased to welcome Venture Capitalist, 3 00:00:05.800 --> 00:00:07.240 Dr. Kim Jin-Soo, 4 00:00:07.440 --> 00:00:11.390 who is actively engaged in early stage startup investment 5 00:00:12.340 --> 00:00:15.790 Dr. Kim Jin-Soo is currently serving as 6 00:00:15.790 --> 00:00:18.350 Managing Director at KT Investment 7 00:00:19.250 --> 00:00:23.350 He has led investment in over 50 startups 8 00:00:23.750 --> 00:00:24.870 with six of them 9 00:00:25.200 --> 00:00:30.719 successfully going public and another six acquired by a bigger company 10 00:00:31.920 --> 00:00:36.720 His main areas of focus are AI and robotics, 11 00:00:37.520 --> 00:00:42.189 with primary investment focused on Series A and Series B stages 12 00:00:43.539 --> 00:00:47.589 He is currently managing a portfolio of 40 startups 13 00:00:47.839 --> 00:00:50.250 and is actively exploring 14 00:00:50.400 --> 00:00:53.300 new and emerging sectors as well 15 00:00:54.450 --> 00:00:58.060 From now on, the following discussion will be in Korean 16 00:00:58.360 --> 00:01:02.410 with English subtitles available for international students 17 00:01:03.360 --> 00:01:05.579 Are you ready? Let's begin 18 00:01:07.361 --> 00:01:09.011 Hello, Dr 19 00:01:09.338 --> 00:01:11.388 Thank you for being here today 20 00:01:11.644 --> 00:01:13.994 Can you briefly introduce yourself? 21 00:01:14.495 --> 00:01:20.145 Hello, this is Jinsoo Kim, Head of Investment at KT Investment 22 00:01:20.400 --> 00:01:23.100 I've been working at Venture Capital for about 10 years 23 00:01:23.600 --> 00:01:28.800 My main areas of investment are AI, robotics, and deep tech 24 00:01:30.800 --> 00:01:33.950 I've invested in about 50 companies so far, and 25 00:01:34.300 --> 00:01:37.610 I've invested about 1.5 billion won in total 26 00:01:38.560 --> 00:01:41.510 I've invested in 6 companies, including IPO and M&A, 27 00:01:41.760 --> 00:01:47.080 and now I'm investing in 5 companies as a unicorn 28 00:01:48.160 --> 00:01:53.510 So, did you become an investor right after you graduated college? 29 00:01:54.060 --> 00:01:57.360 I first joined KT, 30 00:01:57.360 --> 00:02:02.259 and I worked in the new business or strategic sector for about 10 years 31 00:02:02.759 --> 00:02:03.810 Oh, for 10 years? 32 00:02:04.060 --> 00:02:07.460 Yes, and I heard that KT was going to make KT Investment, 33 00:02:07.610 --> 00:02:13.740 so I joined as a startup member and it's been 10 years since then 34 00:02:14.320 --> 00:02:17.670 Oh, so you joined KT first, 35 00:02:17.720 --> 00:02:21.350 and then you became a general engineer? 36 00:02:21.600 --> 00:02:25.400 Yes, I became a general engineer. 37 00:02:25.700 --> 00:02:30.550 I worked in the new business or strategic sector, 38 00:02:30.800 --> 00:02:33.950 and I wanted to work at Venture Capital, 39 00:02:34.150 --> 00:02:36.559 so I heard that KT was going to make KT, 40 00:02:36.559 --> 00:02:39.259 and I joined as a startup member 41 00:02:39.259 --> 00:02:41.769 and it's been about 10 years since then 42 00:02:42.069 --> 00:02:45.419 Oh, so you joined as a general engineer, 43 00:02:45.619 --> 00:02:48.960 and you were mainly in charge of the new business, 44 00:02:48.960 --> 00:02:53.310 and then this company, which wasn't there before, 45 00:02:53.760 --> 00:02:57.520 suddenly became an investment department? 46 00:02:57.820 --> 00:02:59.520 Yes, I created an investment company 47 00:02:59.520 --> 00:03:01.099 You created an investment company? 48 00:03:01.099 --> 00:03:01.919 Yes, I created Venture Capital 49 00:03:02.169 --> 00:03:03.379 So you created Corporate Venture Capital, right? 50 00:03:03.379 --> 00:03:04.410 Yes, that's right 51 00:03:04.610 --> 00:03:08.510 Since you created Corporate Venture Capital, 52 00:03:08.660 --> 00:03:13.199 you applied for funding and joined as a startup member 53 00:03:13.199 --> 00:03:13.759 Yes 54 00:03:13.909 --> 00:03:17.309 So is that company completely separate 55 00:03:17.309 --> 00:03:19.340 from KT's head office? 56 00:03:19.640 --> 00:03:23.470 Yes, it's completely separate, and we have 100% of the shares, 57 00:03:23.720 --> 00:03:27.769 but we are a company that specializes in investment 58 00:03:27.919 --> 00:03:31.919 Oh, so you don't have much relationship with KT's head office? 59 00:03:32.000 --> 00:03:34.550 When we do fundraising, 60 00:03:34.550 --> 00:03:37.900 KT receives about 20-30% of the money, 61 00:03:38.000 --> 00:03:42.560 and we keep introducing KT to the companies we invest in 62 00:03:43.560 --> 00:03:48.149 So we are now proceeding as a point of differentiation, 63 00:03:48.399 --> 00:03:51.799 and we are doing things like connecting with KT while investing, 64 00:03:51.799 --> 00:03:55.149 and creating a business channel 65 00:03:55.279 --> 00:03:59.479 So, Venture Capital, Venture Capital List, 66 00:03:59.479 --> 00:04:02.530 we call it an investment review station 67 00:04:02.880 --> 00:04:05.330 You used to work at a company, 68 00:04:05.330 --> 00:04:07.509 and now you are switching careers 69 00:04:07.759 --> 00:04:12.389 Was there a special reason for switching careers? 70 00:04:12.639 --> 00:04:16.589 Yes, KT had a program called 71 00:04:16.589 --> 00:04:21.189 MIT Sloan's Visiting Fellow Program, 72 00:04:21.239 --> 00:04:24.009 which was a 6-month course 73 00:04:24.509 --> 00:04:27.040 I was selected by KT at that time, 74 00:04:27.440 --> 00:04:30.640 and I didn't even know what Venture Capital was, 75 00:04:30.640 --> 00:04:33.040 and I didn't even know what a startup was 76 00:04:33.440 --> 00:04:37.140 But when I met MIT students and professors there, 77 00:04:37.940 --> 00:04:40.799 I found that MIT had a great entrepreneurial spirit 78 00:04:40.949 --> 00:04:43.299 All the courses were about entrepreneurship 79 00:04:43.849 --> 00:04:46.680 so I took about two courses on entrepreneurship, 80 00:04:46.880 --> 00:04:49.040 and I also joined a club for 6 months 81 00:04:49.390 --> 00:04:52.790 So, a lot of people who were trying to start a business 82 00:04:52.790 --> 00:04:55.519 talked about VC a lot 83 00:04:55.519 --> 00:04:58.169 They bragged about meeting VC, 84 00:04:58.269 --> 00:05:01.269 and I thought, what is this job? 85 00:05:01.869 --> 00:05:04.069 I was very interested when I came back, 86 00:05:04.069 --> 00:05:06.640 and when I heard that KT was making something like that, 87 00:05:06.640 --> 00:05:08.540 I thought I should go 88 00:05:09.040 --> 00:05:12.690 Then you came to KT, 89 00:05:12.690 --> 00:05:15.390 and you happened to go to KT 90 00:05:15.390 --> 00:05:17.539 because KT was making KT Investment 91 00:05:17.939 --> 00:05:21.829 Can you briefly introduce what kind of company KT Investment is? 92 00:05:22.329 --> 00:05:26.000 We are a 100% KT subsidiary 93 00:05:26.000 --> 00:05:29.279 It's been about 10 years since it was established 94 00:05:29.579 --> 00:05:34.959 We are mainly investing in deep tech fields such as AI and robots, 95 00:05:36.159 --> 00:05:39.920 and the AUM, asset under management, is about 350 billion won 96 00:05:39.920 --> 00:05:43.850 It's a medium-sized VC in Korea 97 00:05:43.850 --> 00:05:44.880 Medium-sized? 98 00:05:44.880 --> 00:05:46.780 Yes, it's a medium-sized VC 99 00:05:47.209 --> 00:05:51.409 Then, you mentioned that you connect the startup 100 00:05:51.409 --> 00:05:55.639 that you invest in with the main service of KT 101 00:05:56.239 --> 00:05:57.839 How do you usually do it? 102 00:05:57.839 --> 00:05:59.539 Isn't KT in the communication field? 103 00:05:59.939 --> 00:06:04.380 Yes, but in fact, KT is a strong company in the communication field, 104 00:06:04.980 --> 00:06:07.479 so we don't invest much in that field 105 00:06:07.679 --> 00:06:10.229 Most of the time, 106 00:06:10.229 --> 00:06:14.279 we invest in the new business that KT is mainly doing 107 00:06:15.340 --> 00:06:18.840 But after 10 years of working, 108 00:06:19.190 --> 00:06:24.709 we mainly invest in Series A, the early companies 109 00:06:25.409 --> 00:06:28.959 But what KT wants is more than that 110 00:06:29.159 --> 00:06:32.000 So we invest in the front row in advance, 111 00:06:32.200 --> 00:06:34.750 and if the company is big enough, 112 00:06:34.750 --> 00:06:37.240 we connect it to KT 113 00:06:37.440 --> 00:06:42.480 So KT wants to go a little further, to the seed stage? 114 00:06:42.909 --> 00:06:45.209 We invest in the early stage 115 00:06:45.359 --> 00:06:48.559 Because we connect the early companies to KT, 116 00:06:48.809 --> 00:06:52.990 KT requires more resources and more guarantees 117 00:06:53.190 --> 00:06:55.670 We have 4-5 people in our team 118 00:06:55.670 --> 00:06:57.220 But for startups, 119 00:06:57.670 --> 00:06:59.519 it's actually 10 people out of 4-5 employees 120 00:06:59.519 --> 00:07:01.190 That's what early companies do 121 00:07:01.940 --> 00:07:06.079 So it wasn't easy for early companies to cooperate with KT 122 00:07:06.079 --> 00:07:08.079 So we invest in the early companies, 123 00:07:08.320 --> 00:07:10.959 and if the company has 50-100 people, 124 00:07:10.959 --> 00:07:12.929 and if we go to Series B and C, 125 00:07:13.279 --> 00:07:15.309 if we connect them, 126 00:07:15.309 --> 00:07:16.959 both of them will have physical strength, 127 00:07:16.959 --> 00:07:19.930 so I think there will be a better business synergy 128 00:07:20.680 --> 00:07:24.959 Now, let's go back to the career side 129 00:07:25.209 --> 00:07:28.559 What does a venture capitalist do? 130 00:07:28.809 --> 00:07:30.640 There are 4 main tasks 131 00:07:30.640 --> 00:07:31.359 4 tasks? 132 00:07:31.359 --> 00:07:32.000 Yes 133 00:07:32.150 --> 00:07:34.359 The first one is deal sourcing 134 00:07:34.709 --> 00:07:37.519 We spend most of our time on this 135 00:07:37.600 --> 00:07:39.679 We meet founders, go to them, 136 00:07:39.679 --> 00:07:42.840 and do networking 137 00:07:43.790 --> 00:07:47.770 So it's called deal sourcing to find a good startup 138 00:07:47.920 --> 00:07:49.989 The second is investment 139 00:07:50.239 --> 00:07:52.640 If we find a good company, 140 00:07:52.640 --> 00:07:56.079 there is an investment committee inside 141 00:07:56.079 --> 00:07:59.240 You have to pass this to invest 142 00:07:59.440 --> 00:08:01.660 We prepare an investment committee, 143 00:08:01.760 --> 00:08:03.500 write investment reports, 144 00:08:03.500 --> 00:08:04.559 announce them, 145 00:08:04.559 --> 00:08:07.660 and persuade the committee members 146 00:08:07.860 --> 00:08:09.390 After the investment, 147 00:08:09.390 --> 00:08:10.880 we do business management 148 00:08:11.180 --> 00:08:14.790 We actively involve VCs in the companies we invest in 149 00:08:14.940 --> 00:08:16.399 We meet the CEO regularly 150 00:08:16.399 --> 00:08:19.149 and talk about the direction of the business 151 00:08:19.199 --> 00:08:21.720 and the current problems 152 00:08:21.920 --> 00:08:24.160 The last one is recovery 153 00:08:24.160 --> 00:08:26.640 In Korea, there are three ways, 154 00:08:26.640 --> 00:08:31.750 IPO, M&A, and resuscitation 155 00:08:32.080 --> 00:08:37.619 I think VCs are good at recovery 156 00:08:38.619 --> 00:08:42.120 We do these four tasks 157 00:08:42.320 --> 00:08:44.880 Do you do this every day? 158 00:08:45.030 --> 00:08:48.400 Most of the tasks are divided into two 159 00:08:49.300 --> 00:08:51.159 One is to keep meeting and networking 160 00:08:51.159 --> 00:08:52.889 to find a good company 161 00:08:53.039 --> 00:08:55.310 The other is to keep meeting 162 00:08:55.310 --> 00:08:57.769 and value-up the companies we invest in 163 00:08:58.119 --> 00:09:00.239 This is the main task 164 00:09:00.439 --> 00:09:04.129 The number of investments is event-based 165 00:09:04.479 --> 00:09:09.629 I can't say that there are many in a row 166 00:09:10.329 --> 00:09:13.940 It's hard to manage a company you've already invested in, 167 00:09:14.640 --> 00:09:17.379 but I think it'll be really hard 168 00:09:17.679 --> 00:09:20.100 to find a company you don't know 169 00:09:20.400 --> 00:09:25.080 Do you have any know-hows or methods? 170 00:09:25.359 --> 00:09:29.889 VCs are introduced or discovered 171 00:09:30.239 --> 00:09:32.789 through various channels and networking 172 00:09:32.789 --> 00:09:34.000 There are two types 173 00:09:34.000 --> 00:09:35.050 One is to be introduced 174 00:09:35.200 --> 00:09:38.769 and the other is to be actively studied and invested 175 00:09:39.219 --> 00:09:43.520 Most of them are introduced by other investors, 176 00:09:43.520 --> 00:09:45.540 such as accelerators, 177 00:09:45.690 --> 00:09:46.640 early investors, 178 00:09:46.640 --> 00:09:49.640 and other venture capitalists 179 00:09:49.990 --> 00:09:53.760 Or they are introduced by their friends 180 00:09:53.760 --> 00:09:58.150 or co-workers or experts 181 00:09:58.200 --> 00:10:00.919 and invest in them 182 00:10:01.119 --> 00:10:05.280 Some VCs study industry very hard 183 00:10:05.830 --> 00:10:10.419 If you keep digging into AI or autonomous driving, 184 00:10:10.619 --> 00:10:12.200 you'll find companies like that 185 00:10:12.200 --> 00:10:14.799 So, you can actively discover them 186 00:10:14.799 --> 00:10:16.660 and invest in them 187 00:10:17.160 --> 00:10:18.960 Then, for example, 188 00:10:18.960 --> 00:10:23.660 do you look for reports or professional magazines 189 00:10:23.760 --> 00:10:26.819 and discover a company? 190 00:10:27.469 --> 00:10:30.080 I do that a lot 191 00:10:30.080 --> 00:10:31.599 I read a newspaper 192 00:10:31.599 --> 00:10:34.130 and if I find a company I've invested in 193 00:10:34.130 --> 00:10:36.649 or a very important event, 194 00:10:36.799 --> 00:10:38.279 I just send a cold call 195 00:10:38.479 --> 00:10:40.559 Do you send an email? 196 00:10:40.809 --> 00:10:43.259 No, I don't send an email 197 00:10:43.459 --> 00:10:46.340 I look for someone I know 198 00:10:46.719 --> 00:10:49.349 and ask them to introduce me 199 00:10:49.599 --> 00:10:52.059 In the past, I used to send a lot of emails 200 00:10:52.559 --> 00:10:54.239 and send them to the CS center 201 00:10:54.239 --> 00:10:57.220 But I couldn't get an answer 202 00:10:57.520 --> 00:10:59.329 I was a bit of a noob 203 00:10:59.679 --> 00:11:03.479 So, if I look for someone's resume, 204 00:11:03.679 --> 00:11:05.870 whether it's a university or a job, 205 00:11:06.170 --> 00:11:08.550 I can find something 206 00:11:08.550 --> 00:11:12.850 Then, I look for my mutual friend 207 00:11:13.200 --> 00:11:16.809 and ask him to introduce me 208 00:11:17.409 --> 00:11:19.359 So, you look for someone 209 00:11:19.359 --> 00:11:21.119 with a cold call 210 00:11:21.119 --> 00:11:23.520 and put a report in the middle 211 00:11:23.920 --> 00:11:25.989 Yes, that's the fastest way 212 00:11:26.239 --> 00:11:28.800 to get feedback 213 00:11:29.200 --> 00:11:32.909 I used to make a lot of phone calls 214 00:11:33.359 --> 00:11:36.170 If I call any number or the company's number, 215 00:11:36.320 --> 00:11:38.479 the CS staff would answer 216 00:11:39.079 --> 00:11:41.650 So, if I ask the CEO to meet me, 217 00:11:42.000 --> 00:11:43.840 the CS staff would be flustered 218 00:11:43.840 --> 00:11:45.039 They'd say, 219 00:11:45.039 --> 00:11:46.640 why would you meet the CEO? 220 00:11:46.690 --> 00:11:47.969 Even if the investor calls? 221 00:11:48.169 --> 00:11:51.150 Yes, because they don't know 222 00:11:51.400 --> 00:11:52.600 So, the best thing is 223 00:11:52.600 --> 00:11:54.960 that the person I know 224 00:11:54.960 --> 00:11:56.660 introduces me the fastest 225 00:11:56.960 --> 00:12:00.030 and I can meet him no matter what 226 00:12:00.080 --> 00:12:03.479 So, you have to call 227 00:12:03.679 --> 00:12:05.729 and ask all the people you know 228 00:12:05.729 --> 00:12:06.630 Yes 229 00:12:06.880 --> 00:12:08.839 But even if you do that, 230 00:12:08.839 --> 00:12:11.119 there are times when there's no contact 231 00:12:11.210 --> 00:12:14.830 Now, I've invested about 50 times 232 00:12:15.280 --> 00:12:17.640 And as I've been doing it, 233 00:12:17.640 --> 00:12:22.449 if I search for LinkedIn, Facebook, or X, 234 00:12:22.549 --> 00:12:24.970 I can always find a mutual friend 235 00:12:25.520 --> 00:12:27.119 So, there must be people 236 00:12:27.119 --> 00:12:28.200 in remember app 237 00:12:28.400 --> 00:12:29.760 Now, you can say 238 00:12:29.760 --> 00:12:32.080 that you have a lot of big data 239 00:12:32.230 --> 00:12:34.110 Yes, so if you want to meet someone, 240 00:12:34.110 --> 00:12:35.920 you can meet one or two mutual friends 241 00:12:35.920 --> 00:12:38.479 even if it's not in one step 242 00:12:38.479 --> 00:12:41.890 If it's two steps, you can meet 243 00:12:42.640 --> 00:12:44.479 So, other than studying 244 00:12:44.479 --> 00:12:45.859 and meeting like that, 245 00:12:46.159 --> 00:12:47.839 is there a case where you meet by chance? 246 00:12:48.289 --> 00:12:50.890 Even if it's a coincidence, 247 00:12:50.890 --> 00:12:54.159 there could be a case where you meet by chance 248 00:12:54.359 --> 00:12:57.159 For example, you go to a gathering 249 00:12:57.559 --> 00:13:00.760 and suddenly meet someone 250 00:13:00.810 --> 00:13:02.649 Or if it's a coincidence, 251 00:13:02.799 --> 00:13:04.349 there are cases like this 252 00:13:04.799 --> 00:13:08.369 Let's say you're eating with a CEO or a friend, 253 00:13:08.569 --> 00:13:09.440 and she says, 254 00:13:09.440 --> 00:13:11.320 I'm using this solution these days, 255 00:13:11.320 --> 00:13:12.320 and it's really good 256 00:13:12.670 --> 00:13:14.480 If she say something like this, 257 00:13:14.880 --> 00:13:16.479 I'm like, what's that company? 258 00:13:16.479 --> 00:13:18.769 It's kind of like that in VC 259 00:13:20.509 --> 00:13:24.469 Endless meetings make my all senses widely open 260 00:13:24.719 --> 00:13:26.329 when you're in a meeting 261 00:13:26.329 --> 00:13:27.999 So, if you hear that your company is good, 262 00:13:27.999 --> 00:13:29.599 or that a company is unique, 263 00:13:29.899 --> 00:13:31.419 if a CEO says something, 264 00:13:31.419 --> 00:13:33.540 then you catch that 265 00:13:33.840 --> 00:13:35.440 and investigate it again 266 00:13:35.640 --> 00:13:36.930 If you want to meet, 267 00:13:36.930 --> 00:13:38.579 you have to use all the media you got 268 00:13:38.629 --> 00:13:40.889 So, you don't know what's going to happen, 269 00:13:40.889 --> 00:13:43.240 so you can't ignore any information 270 00:13:43.440 --> 00:13:46.120 You should always be interested and meet 271 00:13:46.320 --> 00:13:48.799 So, when good companies come out of the meeting, 272 00:13:48.799 --> 00:13:50.359 I write it down on a memo 273 00:13:50.559 --> 00:13:54.189 and go home and look for what this person is doing, 274 00:13:54.239 --> 00:13:55.619 investigate it, 275 00:13:55.919 --> 00:13:58.719 find the network, and connect it 276 00:13:58.819 --> 00:14:00.059 In that way 277 00:14:00.609 --> 00:14:04.559 What if when you meet someone 278 00:14:04.559 --> 00:14:07.359 and they're not ready to be invested, 279 00:14:07.359 --> 00:14:09.440 or they don't have a reason to be invested, 280 00:14:09.640 --> 00:14:13.290 or they want to be invested from somewhere else, 281 00:14:13.440 --> 00:14:15.039 like, I don't think KT Investment 282 00:14:15.039 --> 00:14:16.599 will suit our personality 283 00:14:16.599 --> 00:14:18.089 I think there are times when they refuse 284 00:14:18.289 --> 00:14:19.369 There are a lot of times 285 00:14:19.369 --> 00:14:20.320 Oh, yeah? 286 00:14:20.770 --> 00:14:23.659 So, when I first started VC, 287 00:14:23.659 --> 00:14:26.900 I think I was rejected 80 to 90 percent 288 00:14:27.200 --> 00:14:29.889 I think I was rejected almost 100 percent 289 00:14:30.320 --> 00:14:32.930 Because the company is short-term, 290 00:14:33.280 --> 00:14:35.070 and I haven't done anything, 291 00:14:35.520 --> 00:14:37.269 there's no reason for the founders 292 00:14:37.269 --> 00:14:38.850 to get it from me 293 00:14:39.050 --> 00:14:40.750 Even if they are the ones who got an invest? 294 00:14:40.750 --> 00:14:41.508 Right 295 00:14:42.180 --> 00:14:44.819 So, I want to invest in a good company, 296 00:14:45.019 --> 00:14:46.640 in order to invest in a good company, 297 00:14:46.640 --> 00:14:49.229 So many good investors want to invest in them 298 00:14:49.679 --> 00:14:53.059 So, they have to choose 299 00:14:53.359 --> 00:14:55.140 among the good investors, 300 00:14:55.440 --> 00:14:57.120 but the company is short-term, 301 00:14:57.520 --> 00:14:59.240 and I'm short-term, 302 00:14:59.840 --> 00:15:01.520 so they just drop it 303 00:15:01.570 --> 00:15:03.499 saying I'm sorry 304 00:15:03.699 --> 00:15:05.060 There are a lot of startups 305 00:15:05.060 --> 00:15:06.320 who want to be invested 306 00:15:06.320 --> 00:15:06.960 Yes 307 00:15:07.060 --> 00:15:08.409 You don't go to those places 308 00:15:09.109 --> 00:15:11.200 That's right 309 00:15:11.200 --> 00:15:13.039 There are a lot of people 310 00:15:13.039 --> 00:15:15.460 who want to get an invest from me, 311 00:15:15.760 --> 00:15:17.599 but I don't want to invest in them 312 00:15:17.699 --> 00:15:19.719 Oh, there's a mismatch 313 00:15:19.919 --> 00:15:21.119 It's one sided 314 00:15:21.119 --> 00:15:22.799 The rich get richer, and the poor get poorer 315 00:15:22.999 --> 00:15:24.179 Yes 316 00:15:24.479 --> 00:15:27.039 Then, the startups that are crowded, 317 00:15:27.039 --> 00:15:29.590 the startups that you want to invest in, 318 00:15:29.840 --> 00:15:32.670 do you think they'll do well? 319 00:15:33.570 --> 00:15:35.719 I think there are typical companies 320 00:15:35.719 --> 00:15:37.859 that I like 321 00:15:38.159 --> 00:15:38.960 Yes 322 00:15:38.960 --> 00:15:41.919 But each VC has a different personality, 323 00:15:41.969 --> 00:15:44.860 so some people like them, 324 00:15:45.110 --> 00:15:47.850 and some people don't like them 325 00:15:48.150 --> 00:15:50.799 But when you look at the probability, 326 00:15:50.799 --> 00:15:53.210 a good company has a high probability 327 00:15:53.210 --> 00:15:55.019 when VS likes them 328 00:15:55.119 --> 00:15:56.710 I think it's more than 50% 329 00:15:57.710 --> 00:16:01.059 So, it's natural that you want to invest 330 00:16:01.059 --> 00:16:02.479 in a good company 331 00:16:02.479 --> 00:16:05.080 That's how the company grows 332 00:16:05.280 --> 00:16:06.799 Then, you have to find out 333 00:16:06.799 --> 00:16:08.559 if it's a good company first 334 00:16:08.559 --> 00:16:10.680 Then, you would have searched 335 00:16:10.680 --> 00:16:12.960 and met with the idea 336 00:16:12.960 --> 00:16:15.009 that it would be good, 337 00:16:15.459 --> 00:16:17.280 but is there a time when the judgment changes? 338 00:16:17.280 --> 00:16:19.350 like, oh it's not what I think it is 339 00:16:19.350 --> 00:16:20.629 There are a lot of times 340 00:16:20.729 --> 00:16:22.179 In what cases? 341 00:16:22.559 --> 00:16:25.030 I know well about the market, 342 00:16:25.030 --> 00:16:27.410 so I don't get confused about the market, 343 00:16:27.760 --> 00:16:30.320 but I don't know if the founder can do this 344 00:16:30.320 --> 00:16:31.119 Oh, the founder? 345 00:16:31.119 --> 00:16:32.030 Yes 346 00:16:32.430 --> 00:16:33.749 So, there are a lot of cases 347 00:16:33.749 --> 00:16:35.959 where I meet and I'm disappointed in the founder 348 00:16:36.159 --> 00:16:37.440 Oh, in what cases are you disappointed? 349 00:16:37.440 --> 00:16:39.560 They must be decent people too, 350 00:16:39.560 --> 00:16:42.190 since they were probably featured in the newspapers and all 351 00:16:43.100 --> 00:16:46.819 But the tech market is a very large market, 352 00:16:47.119 --> 00:16:49.440 and there are quite a few cases 353 00:16:49.440 --> 00:16:52.510 where I think the founder can't do this 354 00:16:52.960 --> 00:16:54.559 Do you think they're not good enough? 355 00:16:54.559 --> 00:16:56.589 Well, there's that, 356 00:16:57.039 --> 00:17:00.319 and the index may not come out 357 00:17:00.319 --> 00:17:02.000 as I expected 358 00:17:02.400 --> 00:17:04.759 It's actually good in the newspaper, 359 00:17:04.959 --> 00:17:07.599 but when I actually go in and look inside, 360 00:17:08.099 --> 00:17:11.399 there's not much difference 361 00:17:11.599 --> 00:17:13.599 There are a lot of times when I think 362 00:17:13.599 --> 00:17:15.980 the founder can't do this 363 00:17:16.959 --> 00:17:19.920 And nowadays, companies that have been invested 364 00:17:19.920 --> 00:17:23.359 tend to get more investment 365 00:17:23.359 --> 00:17:26.169 from the team rather than by themselves 366 00:17:26.319 --> 00:17:29.519 Do you also prefer team start-ups? 367 00:17:30.319 --> 00:17:34.000 I prefer it when I have a co-founder, 368 00:17:34.000 --> 00:17:35.410 but that doesn't mean 369 00:17:36.010 --> 00:17:38.630 that I invest only in the places 370 00:17:38.630 --> 00:17:40.229 where there are co-founders 371 00:17:40.479 --> 00:17:42.020 There are cases where I invest 372 00:17:42.020 --> 00:17:43.610 in people who started alone 373 00:17:44.160 --> 00:17:46.319 So, even if you start alone, 374 00:17:46.319 --> 00:17:48.160 you need to prove your skills 375 00:17:48.160 --> 00:17:50.500 rather than having a lot of people start up, right? 376 00:17:50.800 --> 00:17:52.709 Yes, I think so 377 00:17:52.909 --> 00:17:55.110 But usually, there are a lot of great people 378 00:17:55.160 --> 00:17:57.400 who start up alone 379 00:17:58.000 --> 00:17:59.599 Of course, there are great people 380 00:17:59.599 --> 00:18:00.890 who start up with co-founders, 381 00:18:01.040 --> 00:18:03.280 but if you look at the company, 382 00:18:03.280 --> 00:18:05.760 it's mostly run by the CEO 383 00:18:06.160 --> 00:18:07.920 But the fact that there are no co-founders 384 00:18:07.920 --> 00:18:09.670 means that you have to do almost everything 385 00:18:09.670 --> 00:18:10.880 from A to Z by yourself 386 00:18:11.080 --> 00:18:13.149 Actually, there's no one 387 00:18:13.149 --> 00:18:14.880 to share the burden 388 00:18:15.839 --> 00:18:17.939 So, the more people start up by themselves, 389 00:18:17.939 --> 00:18:23.039 the more they work hard and get stressed out 390 00:18:23.439 --> 00:18:25.469 But they're doing alone cause they have confidence 391 00:18:25.469 --> 00:18:26.349 Yes 392 00:18:27.599 --> 00:18:30.150 Then, I heard that 393 00:18:30.400 --> 00:18:32.479 you need a fund to invest, right? 394 00:18:32.479 --> 00:18:32.959 Yes 395 00:18:33.209 --> 00:18:34.950 But as you said earlier, 396 00:18:34.950 --> 00:18:36.990 KT is the head office, 397 00:18:36.990 --> 00:18:40.690 so KT supports about 20% to 30% 398 00:18:41.040 --> 00:18:43.879 Where do the other 80% and 70% come from? 399 00:18:44.710 --> 00:18:46.569 In Korea, 400 00:18:46.619 --> 00:18:49.489 we usually get investment 401 00:18:49.489 --> 00:18:51.639 from government-run investment institutions 402 00:18:51.889 --> 00:18:53.489 For example, Motep Fund, 403 00:18:53.489 --> 00:18:55.679 Korea Growth Finance, 404 00:18:56.079 --> 00:18:57.989 or military-owned companies, 405 00:18:57.989 --> 00:19:00.530 banks, and securities companies 406 00:19:00.880 --> 00:19:03.520 We get the rest from government-run 407 00:19:03.520 --> 00:19:05.080 and private institutions 408 00:19:05.280 --> 00:19:07.240 Do you go there yourself? 409 00:19:07.240 --> 00:19:09.309 Or do you get a notice from there? 410 00:19:09.359 --> 00:19:10.719 Sometimes we get a notice, 411 00:19:10.719 --> 00:19:11.920 and sometimes we go there 412 00:19:11.920 --> 00:19:13.560 and get a pitching 413 00:19:13.839 --> 00:19:16.969 So, you don't want to go there? 414 00:19:17.119 --> 00:19:17.680 Yes 415 00:19:17.680 --> 00:19:18.880 Is that possible? 416 00:19:18.880 --> 00:19:19.680 Yes, it is 417 00:19:20.180 --> 00:19:22.300 But you need to meet as many people as possible 418 00:19:22.300 --> 00:19:23.520 To fundraise, 419 00:19:23.670 --> 00:19:25.130 you need to meet LPs 420 00:19:25.330 --> 00:19:28.759 They are called limited partners 421 00:19:29.459 --> 00:19:31.340 If someone is an investor, 422 00:19:31.340 --> 00:19:32.830 that can invest in a fund, 423 00:19:32.830 --> 00:19:34.300 you will meet all of them 424 00:19:34.650 --> 00:19:36.269 So, LPs are the people 425 00:19:36.319 --> 00:19:37.680 who put money in the fund, right? 426 00:19:37.680 --> 00:19:38.560 Yes, that's right 427 00:19:38.710 --> 00:19:40.560 So, you go and meet them 428 00:19:40.560 --> 00:19:42.169 Do they meet you? 429 00:19:42.319 --> 00:19:44.440 Sometimes they don't 430 00:19:44.440 --> 00:19:46.229 to make it possible, 431 00:19:46.229 --> 00:19:48.519 I use all the network I got 432 00:19:48.969 --> 00:19:50.719 They don't just meet me, 433 00:19:50.719 --> 00:19:53.750 I have to find mutual friend 434 00:19:53.900 --> 00:19:56.369 and say, I want to have a meal with him, 435 00:19:56.719 --> 00:19:59.250 or I want to have a tea time with him 436 00:19:59.800 --> 00:20:02.180 Like this, sometimes I need a middleman 437 00:20:02.180 --> 00:20:03.499 and meet someone 438 00:20:03.499 --> 00:20:04.519 That happens a lot 439 00:20:04.919 --> 00:20:06.719 Now that I'm listening to you, 440 00:20:06.719 --> 00:20:09.180 you have to pay attention to two things, 441 00:20:09.180 --> 00:20:10.219 not one 442 00:20:10.319 --> 00:20:11.119 Yes, that's right 443 00:20:11.119 --> 00:20:13.119 You have to meet people who will give you a fund, 444 00:20:13.119 --> 00:20:15.119 such as a military or a bank 445 00:20:15.119 --> 00:20:17.119 You have to get money from them 446 00:20:17.119 --> 00:20:18.919 so that you can invest 447 00:20:19.119 --> 00:20:21.119 You have to meet them 448 00:20:21.119 --> 00:20:23.119 And you have to find a good startup 449 00:20:23.119 --> 00:20:25.519 so you have to meet them 450 00:20:26.119 --> 00:20:28.819 You have to do these two things at the same time, right? 451 00:20:28.869 --> 00:20:30.419 Yes, that's right 452 00:20:30.969 --> 00:20:32.919 When you divide the work, 453 00:20:32.919 --> 00:20:34.919 where do you focus more? 454 00:20:35.719 --> 00:20:40.119 When I make a fund, I focus more on fundraising 455 00:20:40.419 --> 00:20:41.669 Oh, you divide the time 456 00:20:41.719 --> 00:20:43.269 Yes, I focus on fundraising 457 00:20:45.919 --> 00:20:47.869 And when I don't fundraise, 458 00:20:47.919 --> 00:20:51.319 for example, I make a fund every two or three years 459 00:20:51.869 --> 00:20:54.769 When I make a fund, I focus on fundraising 460 00:20:54.969 --> 00:20:57.669 When I don't make a fund, I focus on investing 461 00:20:57.669 --> 00:20:58.919 That's what I do 462 00:21:00.619 --> 00:21:03.719 Now that you're out of funds, once every three years, 463 00:21:03.819 --> 00:21:06.519 when you make a fund, 464 00:21:06.669 --> 00:21:08.669 You focus on fundraising 465 00:21:09.019 --> 00:21:12.119 And when you make enough money, 466 00:21:12.119 --> 00:21:15.619 you go out to find a company to invest in 467 00:21:16.769 --> 00:21:20.569 If ou're interested in AI or robots 468 00:21:21.119 --> 00:21:22.869 You meet them 469 00:21:22.869 --> 00:21:24.869 And you decide 470 00:21:24.869 --> 00:21:26.869 there's a possibility 471 00:21:26.969 --> 00:21:28.719 So you invest in them 472 00:21:29.119 --> 00:21:30.769 And then, 473 00:21:32.469 --> 00:21:34.669 based on your decision, 474 00:21:34.669 --> 00:21:36.419 you make a decision 475 00:21:37.119 --> 00:21:39.119 First, I make a decision, 476 00:21:39.119 --> 00:21:41.119 and then the investment committee decides 477 00:21:41.269 --> 00:21:43.119 So you make a decision first, 478 00:21:43.119 --> 00:21:45.269 and then the investment committee decides 479 00:21:45.669 --> 00:21:47.419 But it's a prediction anyway 480 00:21:47.419 --> 00:21:48.419 Yes 481 00:21:48.619 --> 00:21:50.519 It's not a real conclusion 482 00:21:50.569 --> 00:21:53.419 We said this company would be 10 times bigger 483 00:21:53.869 --> 00:21:55.569 It could be bigger in reality 484 00:21:55.619 --> 00:21:56.919 or it might not be that big 485 00:21:57.119 --> 00:21:59.269 So how much is the success rate 486 00:21:59.269 --> 00:22:01.019 of this prediction? 487 00:22:01.919 --> 00:22:04.919 It's hard to say 488 00:22:06.519 --> 00:22:08.269 For me, 489 00:22:08.469 --> 00:22:10.969 I've invested about 50 times 490 00:22:11.419 --> 00:22:13.469 and failed three times 491 00:22:16.169 --> 00:22:17.819 The success rate is.. 492 00:22:19.019 --> 00:22:21.169 The success rate is not that high 493 00:22:21.319 --> 00:22:22.719 But only 3 of them failed 494 00:22:22.819 --> 00:22:25.519 Anyway, by the time the fund is liquidated, 495 00:22:25.519 --> 00:22:27.719 the company should be attractive 496 00:22:27.769 --> 00:22:32.769 enough for an IPO, M&A or a shareholder exit 497 00:22:33.169 --> 00:22:36.469 From a venture capital firm's perspective, 498 00:22:36.819 --> 00:22:39.819 there are still many companies that are up and running 499 00:22:40.431 --> 00:22:42.481 There are quite a few companies 500 00:22:42.731 --> 00:22:44.181 that are still operating but haven’t been successfully sold 501 00:22:44.231 --> 00:22:45.031 Like a zombie, right? 502 00:22:45.174 --> 00:22:45.924 Correct 503 00:22:46.062 --> 00:22:47.262 Companies that are like zombies 504 00:22:47.401 --> 00:22:49.751 So you failed only 3 times, including those things? 505 00:22:50.105 --> 00:22:51.105 For now, yes 506 00:22:52.171 --> 00:22:54.921 We’ve only liquidated three 507 00:22:56.219 --> 00:22:58.219 I think it's a high success rate 508 00:22:58.569 --> 00:23:00.919 Do you mean that good VCs are doing better? 509 00:23:01.769 --> 00:23:03.719 I think that high-level VCs 510 00:23:03.719 --> 00:23:05.669 can fail a lot 511 00:23:06.069 --> 00:23:08.369 but also success a lot 512 00:23:08.797 --> 00:23:10.697 Many of them are US companies 513 00:23:11.069 --> 00:23:13.069 There are so many VCs in the U.S 514 00:23:13.119 --> 00:23:15.019 Their success rate is 515 00:23:15.019 --> 00:23:16.269 only 10% 516 00:23:16.419 --> 00:23:18.569 But those 10% become thousand times multiplied 517 00:23:19.569 --> 00:23:20.769 In fact, 518 00:23:20.769 --> 00:23:23.119 they call it a tenbagger in the U.S 519 00:23:24.106 --> 00:23:27.106 We earned more than ten times the investment amount- 520 00:23:27.606 --> 00:23:29.956 that’s what we call a “tenbagger.” 521 00:23:30.790 --> 00:23:34.789 The ability to identify and invest in that kind of company is crucial 522 00:23:34.919 --> 00:23:37.419 Honestly, even if over 50% of the investments fail 523 00:23:38.119 --> 00:23:42.169 having just two or three tenbaggers can generate tremendous overall returns 524 00:23:45.201 --> 00:23:46.651 From the outside, 525 00:23:46.951 --> 00:23:49.600 it might seem like getting tenfold return is just expected 526 00:23:50.319 --> 00:23:52.619 after all, it’s a venture investment 527 00:23:53.019 --> 00:23:54.469 But apparently, it’s not that easy. Right? 528 00:23:54.669 --> 00:23:56.269 In Korea, it's especially difficult 529 00:23:56.319 --> 00:24:00.319 In the U.S., take Scale AI for example 530 00:24:00.619 --> 00:24:02.719 it was in the news recently 531 00:24:03.519 --> 00:24:06.969 One of the early investors exited at $2.5 billion 532 00:24:07.219 --> 00:24:09.869 That’s about 3 trillion KRW 533 00:24:10.769 --> 00:24:12.269 They sold the company 534 00:24:12.636 --> 00:24:13.886 to Meta for that amount 535 00:24:14.444 --> 00:24:16.448 I’m not sure how much they invested, 536 00:24:16.448 --> 00:24:18.998 but even if it was a lot, it was probably no more than 10 billion 537 00:24:19.598 --> 00:24:21.620 In the U.S., you see a lot of those kinds of multiples 538 00:24:22.249 --> 00:24:24.399 But in Korea, the IPO market itself is relatively small 539 00:24:24.950 --> 00:24:27.150 Even after going public, companies are often valued at around 200 to 300 billion KRW 540 00:24:27.506 --> 00:24:30.756 That makes it really difficult to achieve multiples higher than five times 541 00:24:32.280 --> 00:24:35.430 So in Korea, having the ability to avoid failure is already a very important skill 542 00:24:36.190 --> 00:24:38.340 At the same time, making investments 543 00:24:38.690 --> 00:24:40.940 that can generate those high multiples is also critically important 544 00:24:41.364 --> 00:24:45.614 Then, have there been any cases where you decided not to invest 545 00:24:46.130 --> 00:24:49.080 because it didn’t seem like the right fit at the time 546 00:24:49.445 --> 00:24:52.245 but the company ended up becoming a huge success later on? 547 00:24:52.947 --> 00:24:55.297 One notable example is Moloco 548 00:24:55.698 --> 00:24:57.248 a promising company 549 00:24:57.248 --> 00:25:00.898 founded by a Korean CEO in the U.S 550 00:25:01.969 --> 00:25:03.869 The company is called ADTEC 551 00:25:03.869 --> 00:25:06.169 The valuation is 4-5 billion Korean won 552 00:25:06.569 --> 00:25:09.719 The valuation is 6-7 trillion Korean won 553 00:25:09.849 --> 00:25:10.999 In the private market 554 00:25:11.369 --> 00:25:14.469 It is very famous, many U.S company invested in them 555 00:25:14.769 --> 00:25:16.319 We evaluated that company 556 00:25:16.319 --> 00:25:18.149 at around 100 billion KRW 557 00:25:18.149 --> 00:25:18.949 100 billion KRW? 558 00:25:19.369 --> 00:25:21.719 Yes, I even went to Stanford in the U.S 559 00:25:21.719 --> 00:25:24.069 The company was in front of Standford 560 00:25:24.769 --> 00:25:26.769 I liked them to be honest 561 00:25:27.419 --> 00:25:30.369 Then I did a reference check 562 00:25:30.369 --> 00:25:33.119 all the results were so bad 563 00:25:33.867 --> 00:25:37.316 Investors in U.S and all the ADTEC related workers 564 00:25:38.115 --> 00:25:40.161 They were all so negative about that company 565 00:25:40.161 --> 00:25:40.861 Why? 566 00:25:41.259 --> 00:25:44.109 From their perspective, the advertising industry is 567 00:25:44.559 --> 00:25:48.543 basically a people-driven sales business 568 00:25:49.993 --> 00:25:52.993 but Moloco was a company that sold technology 569 00:25:53.063 --> 00:25:55.469 rather than relying on traditional sales methods 570 00:25:56.169 --> 00:25:58.399 Because of that, advertising companies in Korea felt 571 00:25:58.649 --> 00:26:02.029 "They don't even do sales, so why should we use their service?" 572 00:26:02.422 --> 00:26:04.372 Something like this 573 00:26:05.549 --> 00:26:07.299 As a result, the company struggled for a while 574 00:26:07.349 --> 00:26:10.499 During COVID-19, 575 00:26:10.849 --> 00:26:13.199 gaming companies started using extensively, 576 00:26:13.199 --> 00:26:15.599 which led to a huge surge in their revenue 577 00:26:17.084 --> 00:26:20.134 But the lesson learned for me was 578 00:26:20.134 --> 00:26:22.844 that I shouldn't rely too much on 579 00:26:22.844 --> 00:26:24.834 the references from the experts 580 00:26:25.084 --> 00:26:26.914 I don't know much about the advertising market, 581 00:26:26.914 --> 00:26:29.664 so I asked the people who work in advertising 582 00:26:29.964 --> 00:26:32.024 about the company's references 583 00:26:32.224 --> 00:26:36.224 The existing players don't have any interest in this small company 584 00:26:36.224 --> 00:26:39.024 and don't think much about the business 585 00:26:39.524 --> 00:26:42.364 But after 6-7 years, 586 00:26:42.364 --> 00:26:44.554 even if the advertising company is big, 587 00:26:44.804 --> 00:26:48.093 the largest label in Korea is about 1,500-2,000 billion won 588 00:26:48.643 --> 00:26:52.733 But the company's last value is 6-7 trillion won, 589 00:26:52.983 --> 00:26:54.643 so there's no difference 590 00:26:54.643 --> 00:26:56.134 Of course, it's a global company 591 00:26:56.334 --> 00:26:57.533 Do you regret it? 592 00:26:57.883 --> 00:26:58.723 I regret it a lot 593 00:26:58.723 --> 00:26:59.924 If I had done it, 594 00:27:00.424 --> 00:27:05.083 it would have been 50 times better 595 00:27:05.933 --> 00:27:07.813 If I had done it, it would have been great 596 00:27:07.813 --> 00:27:09.013 It's such a waste 597 00:27:10.814 --> 00:27:15.014 Lastly, many students want to enter the VC industry 598 00:27:15.014 --> 00:27:17.064 is watching this video 599 00:27:17.614 --> 00:27:21.753 Do you have any advice for them? 600 00:27:23.703 --> 00:27:27.303 There aren't many students who want to enter 601 00:27:27.303 --> 00:27:29.744 the VC industry right away 602 00:27:30.244 --> 00:27:33.884 They usually build their career at work for 3-5 years 603 00:27:33.984 --> 00:27:35.943 and then move on to VC 604 00:27:36.203 --> 00:27:38.903 When we recruit VCs, 605 00:27:38.903 --> 00:27:41.293 the people we meet are all CEOs 606 00:27:41.293 --> 00:27:45.133 So it's weird for a college student 607 00:27:45.183 --> 00:27:48.693 to meet a CEO and talk about something 608 00:27:49.743 --> 00:27:53.514 So I built a lot of experience in one field 609 00:27:53.664 --> 00:27:55.874 And when you join VC, 610 00:27:55.874 --> 00:27:58.063 you come in as a networking 611 00:27:58.513 --> 00:28:01.864 So in order to get around, 612 00:28:01.864 --> 00:28:04.604 you need to know a lot of venture capital around you 613 00:28:04.854 --> 00:28:07.664 There are a lot of cases where you are introduced to them 614 00:28:09.164 --> 00:28:11.543 You have a lot of expertise 615 00:28:11.743 --> 00:28:15.353 If you make a network that's close to venture capital around you, 616 00:28:15.503 --> 00:28:19.594 I think you'll have more opportunities 617 00:28:19.844 --> 00:28:21.184 Do you recruit interns? 618 00:28:21.184 --> 00:28:22.744 I often recruit interns 619 00:28:23.344 --> 00:28:24.944 But being an intern 620 00:28:24.944 --> 00:28:28.224 doesn't mean they can become a full time position 621 00:28:28.224 --> 00:28:28.724 Right 622 00:28:28.724 --> 00:28:29.584 Yes 623 00:28:31.793 --> 00:28:35.134 Thank you for your time today 624 00:28:35.184 --> 00:28:37.943 It was a great and interesting conversation 625 00:28:38.143 --> 00:28:38.943 Thank you 626 00:28:39.143 --> 00:28:40.074 Thank you 627 00:28:40.391 --> 00:28:43.241 We hope today's conversation was very helpful for 628 00:28:43.712 --> 00:28:45.812 startups, seeking investment 629 00:28:46.107 --> 00:28:49.957 and students aiming to become investors 630 00:28:50.742 --> 00:28:52.382 Thank you for watching