Applied Ventures, the corporate venturing unit formed by materials engineering technology provider Applied Materials, has launched an investment fund with state-backed fund-of-funds Korea Venture Investment Corporation (KVIC).
The stakeholders have not disclosed the size of the Applied Ventures Innovation Fund, but a regulatory filing indicates they want to raise $40m.
The unit plans to invest in South Korea-based startups developing semiconductor, display, robotics, healthcare and energy storage technologies among others. The country is currently responsible for more Applied Ventures portfolio companies than any outside its home country of the US.
Applied Ventures, which will manage the fund, typically invests about $50m each year, providing between $500,000 and $3m per round. KVIC previously partnered chemicals producer Solvay for an $18m fund in 2010.
Tony Chao, general manager and senior investment director of Applied Ventures, said: “Our goal at Applied Ventures is to seek out innovative technologies and new ideas that can enable advances in semiconductors and displays, as well as open up new markets.
“Korea’s outstanding talent, R&D intensity and manufacturing capability provide a fertile ground for startups. Applied Ventures has been actively investing in Korea for several years and we are excited to build on this foundation by establishing the Innovation Fund with KVIC.”