Jeong Tae Kim’s Post

View profile for Jeong Tae Kim

CEO of MYSC | Social Innovator | Impact Investor | Design Thinker

🌍 What will happen to capital markets in the future? 💵 And what about the more fragile (and risky) venture investment sector? According to thebell.co.kr, Venture fundraising in Korea peaked in recent years, with unprecedented liquidity flowing to startups: ₩4.08 trillion in 2019, ₩5.9047 trillion in 2020, ₩6.5023 trillion in 2021, and a record ₩6.9772 trillion in 2022. However, this figure dropped significantly to ₩5.0831 trillion in 2023 and further to ₩3.7402 trillion in 2024, returning to pre-2019 levels. Compared to the peak in 2022, nearly half of the funding has disappeared. This decline helps explain why startups are experiencing a "funding winter" and why many small to medium-sized venture capital (VC) firms are struggling to sustain operations. On the flip side, some analysts suggest that 2024 and 2025 may offer rare opportunities for "good vintages" from an investment execution perspective. An interesting article in the New York Times at the start of the year was titled: "Investors Needn't Panic Over Potential Market Turmoil." It provided a simulation analysis of how retirees who allocated $500,000 into a 60% stock and 40% bond portfolio performed as of October 31, 2024, depending on their actions during the COVID-19 period: 📗 Investor 1: Retained their investments and reinvested dividends, achieving a portfolio value of $741,670. 📘 Investor 2: Panicked and liquidated all assets on March 16, 2020, resulting in a portfolio value of $471,514. 📙 Investor 3: Panicked, liquidated on March 16, 2020, but reinvested at the end of May, achieving a portfolio value of $625,843. The article concluded: "Doing nothing is usually the wisest course of (in)action." For venture capital, particularly impact investing, this offers a similar insight. "Doing nothing" doesn't mean holding back on investments or becoming overly cautious simply because the market is in a downturn. Just as in 2024, when 63 investments were made, MYSC plans to execute at least that many in 2025. There’s no reason to panic. For impact investors with a long-term perspective, 2025 looks to be an even more exciting year. 🌍 Extra Mile Acceleration, MYSC’s flagship acceleration/investment program, is now accepting applications until 10:00 AM, January 6. For more details, click 👉 https://ema.kr/210

To view or add a comment, sign in

Explore topics