Two South Korea-based venture capital firms have partnered with OurCrowd, an Israeli equity crowdfunding platform, for investments and collaboration aimed at technology start-ups.
The agreement will see the two firms – DTNI and Yozma Group Korea – establish landing pads in South Korea and Israel together with OurCrowd Labs/02, which is a seed stage incubator focused on deep tech innovation.
Both South Korean firms have signed the partnership to leverage the know-how and methodologies of the Israeli start-up ecosystem.
The intention is to provide start-ups from both countries the network to establish themselves as well as connect with local start-ups and innovation ecosystems, said Moshe Raines, CEO of OurCrowd Labs/02.
There are currently over 6,000 start-ups in Israel, according to Start-Up Nation Finder, a data provider that tracks Israel’s innovation ecosystem.
OurCrowd Labs/02, administered by the Israel Innovation Authority, hosts technology firms that dabble in artificial intelligence, deep learning, autonomous transportation and smart cities.
The collaboration will also encourage mutual information-sharing and the use of venture funds co-created by private and governmental investment vehicles in South Korea and Israel.
DTNI and Yozma Group Korea signed the memoranda of understanding, which were facilitated by the Korea-Israel Industrial R&D Foundation, in July.
Seoul-based DTNI was formed in 2015 with an initial capital of KRW 10 billion ($8.8 million). It currently manages KRW 106 billion ($94.2 million) through seven funds that invest in 60 early and growth stage ventures across the globe.
Yozma Group Korea, meanwhile, is the South Korean branch of Israeli venture capital company Yozma Group.
It invests in companies in clean technology, bio-technology, media, information analytics and communication technologies.