A humanoid robot provides information to a visitor for at a technology event in Seoul on June 19, 2024 (File photo by Yonhap)
South Korea’s startups in the artificial intelligence and robot sectors raised more money through seed rounds than others although investors continued to tighten their purse strings.
Holiday Robotics, a developer of AI humanoid robots for manufacturers, secured 17.5 billion won ($13 million) last month through a seed round, a financing round for initial capital to start a business, according to venture capital industry sources on Monday. That was the largest among funds raised by other startups through such rounds in the first eight months of the year.
The startup established by CEO Song Kiyoung, a co-founder of another South Korean AI startup Sualab Co., along with AI and robotics experts in April is currently focusing on developing an elaborate robotic arm.
“The company has talent in both AI software and hardware controller development, which is critical for humanoid robots,” said Stonebridge Ventures Chief Investment Officer Choi Dong Youl, who led the seed round.
AI SECTOR ABSORBS MONEY
AIZ Entertainmen Corp., which is building a platform for communication between users and AI virtual humans, raised 16 billion won through a seed round.
The startup founded by Namkoong Whon, the former CEO of South Korea’s major online platform Kakao Corp., provides services that allow users to create and customize their own AI characters.
Beeble Inc., an AI virtual studio operator for filmmakers, secured a seed capital of 6.5 billion won, while Sionic AI Inc., a generative AI solution developer, raised 5.5 billion won.
Trillion Labs, a large language model (LLM) startup specializing in Korean, and Coxwave, a corporate AI solution developer, raised 5.4 billion won and 4.5 billion won, respectively.
FALLING SEED INVESTMENTS
Those robots and AI startups succeeded in raising money through seed rounds although investor sentiment remained soured.
Seed investments shrank to 137.1 billion won in 295 startups in January-August from 168.3 billion won in 455 companies a year earlier.
Venture capitalists and other investors focused on startups with solid business models and expert employees, given the sustained funding drought, industry sources said.
“Only proven entrepreneurs with track records of successful exits secured large seed money,” said an investment banking industry source.
By Eun-Yi Ko
koko@hankyung.com
Jongwoo Cheon edited this article.
