South Korea and Israel Launch $80 Million Investment Fund for High-Tech Startups

South Korea and Israel have formed a strategic partnership to drive technological innovation. The two nations have established an investment fund of $80 million, the NH-OC Global Open Innovation Fund, in collaboration with OurCrowd. This joint venture aims to foster growth in high-potential startups across both countries, with a particular focus on semiconductors, robotics, automotive, quantum computing, cybersecurity, and digital health.

The fund has already secured $48 million from Korean partners, NH Venture Investment and Korea Growth Investment Corporation (K-Growth), with OurCrowd actively raising the remaining funds from its global network of over 240,000 investors. The fund targets around 25-30 startups, aiming to provide crucial capital and foster international collaborations between Israeli and South Korean tech companies.

The NH-OC Global Open Innovation Fund seeks to leverage the strengths of both nations. Israeli startups will gain access to South Korean industrial giants, enabling them to forge global collaborations, especially in the Asia-Pacific markets. Conversely, South Korean startups will benefit from Israel’s extensive global connections to leading venture capital investors and entrepreneurs, accelerating their integration into foreign tech ecosystems and access to much-needed capital.

Jon Medved, CEO of OurCrowd, highlighted the strategic importance of this collaboration, stating, "South Korea is looking at Israeli innovation to establish its position in the industries of the future that it strives to lead by the end of the decade and beyond".

K-Growth, a key player in managing South Korea’s strategic investment funds under the Ministry of Trade Industry and Energy (MOTIE), has committed $32 million to the fund. NH Venture Investment, the venture arm of NongHyup Financial Group, has contributed $16 million. This collaboration is one of K-Growth's largest international investments, emphasizing its commitment to fostering global technological advancements.

The establishment of the NH-OC Global Open Innovation Fund marks a significant milestone in the bilateral relations between South Korea and Israel. It underscores both nations' commitment to advancing high-tech innovation and creating synergies that can drive growth and technological breakthroughs on a global scale. As this fund begins to operate, it is expected to pave the way for groundbreaking developments in key technological sectors, fostering a new era of international cooperation and innovation.