Naver D2SF Shifts to Support Korean Startups' Global Expansion

Seoul, South Korea - Naver Corp's corporate venture capital arm, Naver D2SF, announced plans to broaden its support for South Korean tech startups to include global market expansion as it marks its tenth anniversary of operations.

According to data from an anniversary roundtable event, the investment unit has funded 115 startups over the past decade, with 99% of investments occurring during seed or Series A rounds. 

The aggregated valuation of these portfolio companies has reached KRW 5.2 trillion (US$3.66 billion), quadrupling from 2021 when the portfolio contained 70 companies.

"Our differentiation comes from investing in early-stage startups with exceptional technology, even without immediate collaboration opportunities," said Sang-hwan Yang, head of Naver D2SF, during the anniversary event.

The venture fund reports a 96% survival rate among its portfolio companies, with startups typically advancing from seed stage to pre-Series A within 18 months. 

According to Naver, 64% of these startups have developed specific collaboration initiatives with the parent company.

D2SF concentrates on pioneering companies in the artificial intelligence, virtual technology, and robotics sectors. 

Notable investments include Furiosa AI, which received three rounds of funding beginning with its initial post-establishment investment, Clobot, and Crowdworks.

Beyond financial backing, D2SF provides value-adding programs, including office space and cloud infrastructure. 

According to company data, startups actively participating in these programs demonstrated growth rates approximately nine times higher than non-participants. 

The fund also operates biannual campus technology entrepreneurship competitions to identify and invest in pre-launch student ventures.

Soo Young Yang, CEO of TechTaka (ARGO), which received two investment rounds from D2SF, highlighted the partnership benefits.

"Through cooperation with Naver Shopping, we operate a seven-day 'Naver Delivery' service, maintaining a 99.9% same-day dispatch rate," Yang said.

Looking forward, D2SF disclosed that 81% of its portfolio companies are pursuing global expansion. 

The venture fund established a Silicon Valley presence in October 2024 to support these international ambitions.

"After 10 years, many startups that have grown with us now face the necessity of expanding globally to survive," Sang-hwan Yang stated. "They need larger markets and greater capital while facing difficulties securing global customers and partners. We're exploring new opportunities to serve as a bridgehead for startups to achieve greater growth in global markets."

Naver CEO Soo-yeon Choi emphasized that D2SF holds significant meaning for Naver, which began as a startup. "The past decade represents the time Naver and tech startups have spent building a solid IT ecosystem together," Choi stated in a commemorative message.