November 23, 2024

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[THE INVESTOR] Israeli venture capital firm Yozma Group plans to invest in South Korean biotech and medical companies by setting up a 50 billion won (US$41.38 million) fund, sources said on Dec. 29.

This marks the Tel Aviv-headquartered Yozma’s first investment in overseas health care sector, which has been mainly focused on Israeli IT ventures.

The Yozma Group’s Korea country head Lee Won-jae. The Yozma Group

The fund is a part of a 120 billion won multi-manager investment, comprised of six sub-funds, and is led by state-run Korea Development Bank to support overseas venture capital companies and other strategic investors hoping to make investment into Korean small and midsized firm.

Yozma partnered with Daesung Private Equity to raise the fund.

“The Yozma-Daesung PE fund will start investing in Korean startups in biotech and health care sectors from the first half of next year,” a KDB official said.

The two investors plans to support high-potential startups to make inroads into overseas markets such as the US, China, Indonesia and India, and pursue listings on the NASDAQ, according to the official.

Founded in 1993, Yozma has invested in Israeli ventures, and more than 20 companies have been either listed on NASDAQ or have been acquired by global companies.

The group established its Korean unit in 2014 and opened a “startup campus” in March in Pangyo.

By Park Han-na (hnpark@heraldcorp.com)