An investment ice age? A deep freeze?
2022 was a very tough year for companies, especially startups. This was because it was a deep freeze in venture capital. Many startups are still struggling to secure investment.
According to the Ministry of SMEs and Startups, venture capital investment in the first quarter of 2023 decreased by 60.3% compared to the same period last year. (Note) Some companies had no choice but to cut staff to survive, while most focused on strengthening their foundations, such as improving profitability. To make matters worse, the government’s venture capital fund budget was also reduced, making it an even harsher winter for small and medium-sized brands.
Why 260 billion won was raised
Even in difficult times, there are companies that have managed to find a silver lining—securing follow-on investment. What is their secret to securing funding in a frozen investment market? What potential do these companies hold, and what makes them special?
There is a common thread among the dozen or so companies that secured investment in 2022: they all have ‘Wadiz Maker.’ The total amount of investment secured last year by those who successfully completed projectsWadiz was 265.1 billion won. What is the correlation between Wadiz and approximately 260 billion won?
First, crowdfunding allows you to quickly raise capital for your business. With this capital, companies can not only launch new products or services or enhance existing ones, but also test the market viability of their products.
Thanks to this, the experience of a successful funding round and the process itself serve as a portfolio. Companies with a track record of successful funding have already been validated by the public, which helps build greater trust with investors.
Wadizserves as a springboard for makers to reach the stage of attracting institutional investment. As a result, over 120 of Wadiz successful makers have secured 714.8 billion won in follow-on funding to date.
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So, which creators secured follow-up funding last year, and what kind of success did they achieve Wadiz? Let’s take a look.
"OnIngredients," an organic, eco-friendly, and clean beauty brand
OnGridiants has raised over 200 million won and garnered 2,923 supporters Wadiz. Founded in 2019, the company first launched a campaign Wadizin 2020 for its Houttuynia cordata and hyaluronic acid essence.
A maker who even quit the company they’d worked at for 10 years to create a product with genuine integrity. Perhaps their story resonated with people? Their skincare line—which can be customized daily to suit your skin’s condition—raised approximately 51 million won, achieving a record 10,892% of its funding goal.
Since then, they’ve developed vegan skincare products and cleansing slimes using a variety of ingredients, achieving consecutive crowdfunding successes and even securing a spot on Wadiz.
A maker expressing gratitude to supporters in the Encore Project Story, which concluded in May 2023
Last December, OnIngredients secured a total of 800 million won in seed funding from four institutional investors, including Wadiz. Recently, the company was also selected for the “2023 Global Small and Medium-sized Enterprises 1000+” project, organized by the Ministry of SMEs and Startups. Amid a downturn in the startup sector, OnIngredients continues to take on new challenges and grow, offering a beacon of hope.
👉 Learn more about OnIngredients (Click)
The ketogenic lifestyle brand "MyNormal Company"
If you’re interested in healthy eating habits, chances are you’ve heard of MyNormal Company. Founded in 2018, MyNormal Company is a Korean low-sugar food brand. According to the brand’s introduction,“We are building an authentic brand based on the storytelling and strong customer loyalty established throughWadiz.”
MyNormal Company entered the market in 2018 with its bulletproof coffee product, “MyNormal Butter Coffee,” through a Wadiz crowdfunding campaign. Since then, the company has successively developed and launched products such as MyNormal Allulose (a low-sugar sweetener), low-sugar ice cream, and zero-sugar olive oil mayonnaise through Wadiz, establishing itself as a “ketogenic” lifestyle brand—a concept that was relatively unfamiliar in Korea at the time.
*Ketogenic (Ketogenic: Primarily used in conjunction with a diet, this term refers to increasing fat intake while reducing carbohydrate and protein intake. It is known to reduce insulin resistance and thereby decrease body fat accumulation, and has recently been adopted as a weight-loss method. (Reference: Naver Encyclopedia of Current Affairs)
Wadiz, we’ve raised over 600 million won and garnered 12,741 supporters, earning us the title of Wadiz Best Maker” for three consecutive years since 2018.
Wadiz Maker Awards 2018–2020, Real Happiness Category
Minormal Company, which has turned a profit every year since its founding, successfully secured 1.7 billion won in pre-Series A funding last October.
Minormal Company is expanding its business scope beyond product launches to become a platform for healthy lifestyles, including the launch of a diet and health management platform. We expect this investment to help Minormal Company demonstrate even greater potential.
👉 Learn more about MyNormal Company (Click)
Hotel space development brand ‘AZMT’
A brand that’s still fresh off the press, having been around for just over a year. AZMT, a startup specializing in hotel space development, was founded in 2021 by a group of experts with experience in tourism, hospitality, and spatial design. AZMT goes beyond the traditional hotel model, combining diverse concepts and content—such as community and local culture—to develop, operate, and market a new form of hotel.
For its first project, AZMT set out to develop a local community hotel that integrates regional content. The first location, “Jeonju Siwha Yeonpung,” was introduced through a Wadiz crowdfunding campaign in 2022.
The image evoked by the city of “Jeonju,” the excitement of exploring an unfamiliar region, and the rich local content attracted 232 backers and raised approximately 32 million won. Encouraged by this support, we launched a follow-up project for Jeonju Siwha Yeonpung about six months later.
Thanks to the market potential and growth prospects of the “local community hotel” demonstrated by its crowdfunding campaign, AZMT secured seed funding from two institutions in May 2022 —less than a year after its founding. With this investment as a springboard, we are very curious to see how AZMT’s local community hotel project will take off.
👉 Learn more about AZMT (Click)
Has the message that crowdfunding serves as a “shortcut” to follow-on investment reached many small brands?
In the fourth quarter of 2022, approximately 14,000 teams joined Wadiz, a 122% increase compared to the same period in 2021. As the number of companies turning Wadizcontinues to grow, Wadizis working hard every day to help them reach a wider audience pedaling.
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