Sandbox Network, a South Korean multi-channel network services provider, will raise KRW 100 billion ($84 million) in a Series D funding round.
The company is seeking a lead investor, which also involves global venture capital firms.
According to reports, the company’s legacy investors will decide whether to participate in the Series D round once the lead investor and investment amount are determined.
Sandbox Network, founded in June 2014, manages a portfolio of popular YouTubers with 170 million subscribers and 2.3 billion monthly views.
The company’s CCO and co-founder, Dotty, is also a popular YouTuber with 2.53 million subscribers.
Sandbox Network completed a third-party capital increase in early July, bringing the company’s valuation to KRW 227.2 billion ($190 million).
If the Series D funding round is successful, the company’s estimated valuation is expected to reach KRW 300 billion ($252 million).
In 2019, Sandbox Network generated KRW 60.8 billion ($51 million) in revenue, an increase of 115.6% year-on-year.
In addition, the company has reduced its deficit every year since 2017, recording an average growth rate of 109% over the past three years.
The multi-channel network market is expected to grow in South Korea, as South Koreans spend an average of 50 minutes watching YouTube content across all age groups.
According to the Korea Multi-Channel Network Association, the market is expected to reach KRW 8 trillion ($6.7 billion) by 2023.
Sandbox Network CEO Lee Pil-sung has said the company plans to go public in 2021 or 2022. He believes a listing would allow the company to grow sustainably and be more socially responsible.
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