What makes CVC rewarding is the opportunity it provides to go beyond simple financial funding, helping both startups and corporates to grow, says JunSung Bae, executive director of Lotte Ventures, the corporate venturing arm of South Korean conglomerate Lotte Group.
“Corporate venturing can be more challenging than purely financial investments, presenting a set of unique complexities that require ongoing attention,” says Bae.
Launched in 2016, Lotte Ventures backs companies from early stages to series B that are developing technologies and products strategic to its parent firm’s businesses.
With a team of 20 people and approximately $250m under management, Lotte Ventures has invested in more than 260 startups spanning sectors including retail, chemicals, secondary batteries, mobility, bio and healthcare.
“Corporate venturing can be more challenging than
purely financial investments, presenting a set of unique complexities that require ongoing attention.”
Bae has a background in consulting, strategic planning and business creation. He transitioned into the CVC investor role after seven years at Lotte Group from 2012. Using this experience, he oversees open innovation programmes and connects startups to Lotte subsidiaries.
Bae will focus on bio-related innovations this year because drug development has sped up after the covid-19 pandemic. “I anticipate this wealth of insights will accelerate advancements in pharmaceuticals, surpassing the pace of progress seen in previous generations,” he says.
While Bae recognises the transformative potential of artificial intelligence, he is refraining from large investments in AI startups.
“The AI startup landscape, exemplified by ChatGPT, is still in its early stages, and the definitive direction on how they will revolutionise the world has not yet crystallised,” says Bae. “Nevertheless, my conviction in the ultimate transformative power of AI remains steadfast. I believe that, as these startups mature and define their trajectories, they will play a pivotal role in reshaping our world.”
See the full list of GCV Emerging Leaders for 2024 here.