South Korean companies SK Networks, LG Electronics and Hanwha Group have joined with Japanese technology conglomerate Softbank to contribute to a new $130m fund to invest in AI startups.
The fund, Alpha Intelligence, and was set up by SBVA, an independent VC operation set up by SoftBank in 2000 but acquired by The Edgeof, a VC company, in 2023.
SK Networks is a group operating across multiple industries, including mobility, hotels, and blockchain. LG Electronics makes consumer electronics and appliances, and Hanwha Group is a diversified conglomerate.
The fund will target middle-stage AI startups in Asia, and those in the US that aim to establish a foothold in Asian markets. There are plans to increase the fund to $200m by the end of 2024.
It will invest across seven sectors: cloud SaaS, healthcare, biotech, fintech, semiconductors, robotics and agriculture and fisheries.
In 2024, SBVA closed a $150m AI fund called the 2024 Alpha Korea Fund. It was the lead investor in the $2.2m seed funding round for South Korean AI translation startup Boeing Lab.
