– In 2024, the “Lycon” venture fund, part of the Mother Fund investment program, was established with 5 billion won in capital, partnering with Lotte Home Shopping as a strategic partner.
– Focused investment in and support for promising small brands in the lifestyle and local sectors… Anticipated synergies with the Loan-Investment Partnership Scheme (LIPS)
Wadizprogram to nurture early-stage startups in the lifestyle and local sectors is expected to get into full swing.
Wadizannounced that Wadizinvestment subsidiary, Wadiz, completed the formation of its first venture fund on June 27 through theWadiz Next Brand Incubation Fund Formation Meeting.” The event was attended by WadizCEO So Kang-seop, as well as representatives from Korea Venture Investment (the master fund) and Lotte Home Shopping, which contributed capital to the fund.
Following Wadizselection in February as the lead general partner (GP) for the “Licon” fund—the first of its kind established this year—under the first round of the Master Fund investment program, Wadizhas partnered with Lotte Home Shopping as a limited partner (LP) and strategic partner. The successful closing of this fund is significant, as it marks the first time a new fund has been closed within the designated timeframe despite the recent contraction in the investment market, which has made it difficult to raise new funds.
This fund has been established with a total size of 5 billion won, and we plan to focus on investing in and nurturing promising brands in the lifestyle and local sectors. In particular, we will accelerate our efforts to support entrepreneurial small business owners and local companies that have achieved success on Wadiz through their unique ideas and product quality.
Since signing a strategic partnership agreement last October, WadizLotte Home Shopping have been working together to foster promising small and medium-sized brands. With the establishment of this fund, the two companies plan to significantly expand the scope of their collaboration.
What sets this fund apart is its hybrid investment and financing strategy, which supports corporate fundraising by combining investments in promising early-stage companies with the “LIPS” matching loan program for entrepreneurial small business owners. LIPS is a program administered by the Ministry of SMEs and Startups under which a designated operator makes an initial investment and subsequently recommends the company for a policy loan. Under this program, the government provides low-interest policy loans of up to five times the amount of private investment (up to 500 million won).
So Kang-seop, CEO Wadiz, stated, “The key differentiator of this fund is that it was established in collaboration with strategic investors who can provide tangible support, ranging from market expansion to financial assistance.” He added, “Going forward, we will use this fund as a lever to nurture numerous ‘Licon’ companies and set the standard in the field of investment in entrepreneurial small business owners.”
