Venture Business Industry Trends
Analysis of venture business distribution by industry, annual trend changes, notable sectors for 2025-2026, and investment fundraising by industry.
Venture Business Industry Trends
Industry Overview
The industry composition of Korean venture enterprisesVenture Enterprise
An enterprise certified under the Special Act on Fostering Venture Enterprises, recognized for its technology and growth potential, receiving various tax, financial, and human resource benefits. is gradually diversifying from its early ICT-centric structure toward bio, deep tech, and climate technology. This article analyzes the industry distribution and trends of all 38,000 venture enterprises as of 2024.
1. Venture Business Distribution by Industry (2024)
| Industry | No. of Companies | Share | YoY Change |
|---|---|---|---|
| ICT Software & Services | 14,800 | 38.4% | +1.2% |
| Manufacturing & Hardware | 9,600 | 24.9% | -2.1% |
| Bio & Healthcare | 5,400 | 14.0% | +3.8% |
| Content & Media | 2,700 | 7.0% | +0.5% |
| Services & Distribution | 2,500 | 6.5% | -1.2% |
| CleanTech & Energy | 1,500 | 3.9% | +8.2% |
| Agri-Food & FoodTech | 900 | 2.3% | +4.5% |
| Space & Defense | 600 | 1.6% | +15.3% |
| Other | 500 | 1.4% | - |
| Total | 38,500 | 100% | - |
2. ICT Software & Services (38.4%)
Current Status
ICT Software & Services is the largest industry segment among Korean venture enterprises. This sector encompasses a wide range of sub-fields including SaaS (Software as a Service), platforms, e-commerce, fintech, and edtech.
Sub-field Distribution: - AI and machine learning solutions: 28% - B2B SaaS and enterprise software: 22% - Platforms and marketplaces: 18% - Fintech and insurtech: 12% - Edtech and HR tech: 10% - Other ICT services: 10%
Recent Trends
Accelerating AI Integration: Since 2023, all ICT startups have been integrating AI as a core feature. Moving beyond simple AI API wrapping, there is increasing development of Vertical AI models trained on specialized datasets.
Notable areas: - Generative AI (GenAI) apps: Korean-language specialized LLMs, AI for legal, medical, and accounting fields - AI agents: Multi-agent systems that automate complex tasks - Enterprise AI: B2B platforms that support AI adoption by large corporations
Strong B2B Software Performance:
As growth in consumer platforms has slowed, B2B SaaS is gaining attention as an alternative. VCVenture Capital (VC)
Investment firms providing capital and management support to high-risk, high-return venture enterprises. Registered as 'SME startup investment companies' in Korea. investment is particularly concentrated on B2B solutions with potential for global market entry.
Average Fundraising Amounts (2024)
- Seed: approx. 300 million KRW
- Series A: approx. 4.5 billion KRW
- Series B: approx. 15 billion KRW
3. Manufacturing & Hardware (24.9%)
Current Status
The number of venture enterprises transitioning from traditional manufacturing to smart factories, robotics, and advanced materials is growing. Hardware-based ventures have characteristics of higher early-stage capital requirements and longer development periods compared to software.
Sub-fields: - Smart factories and industrial IoT: 30% - Semiconductor and display materials and components: 20% - Robotics and automation: 15% - Electric vehicles, batteries, and charging: 12% - Medical devices and diagnostics: 10% - Other manufacturing: 13%
Recent Trends
Rapid Growth in Semiconductor Design (Fabless): Fabless startups have surged due to the explosion in demand for AI semiconductors. Korean startups are gaining global recognition in neural processing unit (NPU) design, edge AI chips, and automotive semiconductor design.
Key companies (early stage): - Furiosa AI: AI semiconductor design - Rebellions: NPU design (listed on KOSDAQ in 2024) - Sapeon: AI semiconductors from a team of Samsung Electronics alumni
Battery and Secondary Cell Materials: Startups in materials and components are benefiting from the global growth of K-battery companies (LG Energy Solution, Samsung SDI, SK On).
4. Bio & Healthcare (14.0%)
Current Status
Korean bio and healthcare venture enterprises span diverse sub-fields including new drug development, medical devices, digital health, and precision medicine.
Sub-fields: - New drug development and biopharmaceuticals: 35% - Medical devices and diagnostic equipment: 25% - Digital health and healthcare IT: 22% - Genomics and precision medicine: 10% - Plant-based and alternative food bio: 8%
Recent Trends
AI-Driven Drug Development: The use of AI for identifying new drug candidates has grown significantly. Investor interest is high given the potential to shorten the traditional drug development timeline (10–15 years) and reduce costs (over 1 trillion KRW).
Notable companies: - Paros IBio: AI drug development platform - Standigm: AI-based new drug discovery - OncoCross: AI drug repurposing
Digital Therapeutics (DTx): Digital therapeutics using apps or software as treatment are emerging as a new category. Korean startups are growing rapidly in non-pharmacological treatment areas such as cognitive behavioral therapy, insomnia, and ADHD.
Characteristics of Bio Investment: - Seed to Series A: Focused on evaluating technology readiness level (TRL) - Series B and above: Reflects clinical data and pipeline value - Average development period: 7–12 years - Primary IPO pathway: Technology Growth Company Special Listing (possible without profits)
Average Fundraising Amounts by Industry (2024)
- Seed: approx. 500 million KRW (accounting for clinical costs)
- Series A: approx. 8 billion KRW
- Series B: approx. 25 billion KRW
5. Content & Media (7.0%)
Current Status
Against the backdrop of global K-content popularity, venture enterprises are actively emerging in webtoons, web novels, gaming, and entertainment technology.
Sub-fields: - Webtoon and web novel platforms and production: 30% - Game development and distribution: 25% - OTT and video content: 20% - AI content creation tools: 15% - Live commerce and fandom economy: 10%
Recent Trends
AI-Generated Content (AIGC): Content production startups leveraging text, image, and video generation AI tools are surging. Representative examples include AI webtoon colorization, automated web novel generation, and ad creative automation.
Virtual Influencers and the Metaverse: While the metaverse craze cooled between 2023 and 2024, virtual influencer and AI avatar-based services continue to grow.
6. CleanTech & Energy (3.9%) — Fastest Growing Sector
Current Status
This sector showed 8.2% growth year-over-year in 2024, making it the fastest-growing segment. Carbon neutrality targets (2050 Net Zero) and tightening ESG regulations are driving investment.
Sub-fields: - Solar and wind energy technology: 25% - Energy storage (ESS and batteries): 20% - Carbon capture, utilization, and storage (CCUS): 15% - Hydrogen technology: 15% - Smart grid and energy management: 12% - Eco-friendly materials and recycling: 13%
Notable Companies (2024–2025)
- Terrablock: CO₂ capture technology (Series A, 10 billion KRW)
- H2K: Hydrogen production and storage solutions
- Greenergy: ESS battery management system (BMS)
- Ecobit: Waste plastic pyrolysis technology
Investment Characteristics
- High proportion of government-led investment (Green New Deal funds, etc.)
- Growing interest from global investors (European climate VCs entering the market)
- Long investment return cycle (7–12 years)
- Most business models are B2B, centered on corporate customers
7. Space & Defense (1.6%) — Highest Growth Rate
Current Status
This sector recorded the highest growth rate at 15.3% year-over-year in 2024. Korea's space technology self-reliance (Nuri rocket success) and the increase in defense industry exports are catalyzing the emergence of private space startups.
Sub-fields: - Small satellites and launch vehicles: 40% - Satellite data services: 25% - Defense technology commercialization: 20% - Drones and UAVs: 15%
Notable Companies
- Innospace: Small launch vehicles (achieved first orbital insertion in 2024)
- Perigee Aerospace: Small rocket development
- Contec: Satellite imagery AI analysis
- Sitemover: UAV special mission systems
Investment Characteristics
- Large upfront capital requirements (tens of billions of KRW)
- Essential reliance on government support (Defense Acquisition Program Administration, Ministry of Science and ICT)
- Growing entry of US and Israeli defense VCs
- Dual-use (civilian and military) technology strategies are important
8. Annual Industry Trend Changes
| Period | Dominant Industries | Characteristics |
|---|---|---|
| 2015–2018 | O2O platforms, delivery and brokerage | Growth era of Coupang and Baemin |
| 2018–2020 | Fintech, SaaS | Toss consecutive funding rounds |
| 2020–2022 | COVID beneficiaries: telemedicine, e-commerce | Market Kurly, Socar IPO attempts |
| 2022–2023 | ValuationBusiness Valuation The process of determining the economic value of a business in monetary terms using methods like DCF and multiples. correction, selective investment |
AI transition preparation period |
| 2024–present | AI & semiconductors, CleanTech, space | Concentrated deep tech investment |
9. EXITExit
The process by which investors recover their investment through IPO, M&A, or secondary sale. Status by Industry (2024)
| Industry | IPO | M&A | Secondary |
|---|---|---|---|
| ICT Software | 32 | 78 | 120 |
| Bio & Healthcare | 25 | 22 | 45 |
| Manufacturing & Hardware | 10 | 38 | 30 |
| CleanTech & Energy | 3 | 8 | 12 |
| Content & Media | 2 | 2 | 3 |
Insights: - Bio has a relatively high share of IPOs (leveraging Technology Growth Company Special Listing) - ICT Software has a high proportion of M&A and secondary transactions (preferred by large corporations for acquisition) - CleanTech & Energy is still in the early stages of EXIT
Conclusion
The industry landscape of Korean venture enterprises is changing rapidly. The clear trend is diversification away from traditional ICT software toward AI, bio, CleanTech, and space and defense.
The key investment areas for 2025–2026 will be AI (generative and agent), semiconductors (fabless and materials), climate technology (carbon neutrality), and space and defense (NewSpace). For those preparing to start a business, connecting these macro industry trends to their own business opportunities will be advantageous for both fundraising and market success.
Understanding investment cycles by industry and investor preference areas provides important insights not only for maintaining venture enterprise status, but also for follow-on investment strategies.