South Korean multi-channel network company Sandbox Network has raised KRW 50 billion (USD 45 million) in a Series D financing round. Investors in the round included STIC Ventures, NVC Partners, Nexon Korea, KDB Bank, Q Capital Partners, JB Asset Management, IBK Bank, Samsung Venture Investment, and BSK Investment.
The most recent funding round occurred in January 2019, when the company raised KRW 25 billion (US$27.5 million) in a Series C round led by TBT.
As a result, Sandbox Network's total secured funding now stands at KRW 90 billion (US$81 million), with a current valuation of approximately KRW 300 billion (US$27 million), according to BELL.
Sandbox Network's revenue in 2019 reached KRW 60.8 billion (US$51 million), an increase of 115.6% compared to 2018.
Although the company has been in the red since 2017, the size of its debt has decreased each year, with an average growth rate of 109% over three years.
Founded in June 2014, Sandbox Network manages popular YouTubers whose creators have amassed 170 million subscribers and 2.6 billion monthly views.
Dotty, the co-founder and chief creative officer, is a popular YouTuber with 2.53 million subscribers.
The multichannel network market in South Korea is promising, as South Koreans of all ages spend an average of 50 minutes consuming YouTube content.
The Korea MCN Association predicts the market will reach KRW 8 trillion (USD 6.7 billion) by 2023.
Sandbox Network plans to use the funds to invest in creators and IP, strengthen its data-based management solution, produce original content, enter global markets, including China, and expand its commerce and advertising business.
Co-founder and CEO of Sandbox Network, Pilsung Lee, expressed gratitude for the investors' support and pledged to aim higher in creating a creator-based business ecosystem enabling viewers to enjoy more content and promote Korean content globally.
In July, the South Korean government recognized Sandbox Network as a future unicorn startup.
