Recent Market Trends and IR Insights from a VC Analyst: Entrepreneurship Academy featuring Park Ji Hyung, Senior Investment Manager at LB Investment 

On October 8, Korea University Business School hosted a special lecture as part of its Entrepreneurship Academy at "The Stage," located on the 2nd floor of the Business Main Building. The lecture featured Park Ji Hyung, Senior Investment Manager at LB Investment, who shared insights on three pivotal topics: (1) recent market trends, (2) effective strategies for investment pitching (IR), and (3) the daily operations of venture capital (VC) professionals. The session concluded with an engaging Q&A, allowing students to interact directly with the speaker. 

T Senior Investment Manager Park Ji Hyung began by sharing his experiences at Neowiz, where his roles in marketing and business development provided him with valuable insights into the processes of venture capital (VC). He shared specific anecdotes from his time at the company, describing how his team prepared, developed, and successfully launched games on a global scale. Reflecting on these experiences, he stated, "VC professionals come from various fields. My experience at a gaming company gave me familiarity with mobile apps and games, which provides a strong foundation when making investment decisions." 

Next, Senior Investment Manager Park Ji Hyung discussed recent market trends, focusing on the U.S. market. He explained that he chose to highlight the U.S. because "the Korean VC market often follows the trends set by the U.S." Park described the current U.S. VC market as the most favorable environment for investors in the past decade, attributing this to a significant rise in down-round valuations in recent years, which has created highly advantageous conditions for investors in the VC space. 

However, Park noted that the down-round rate remains relatively low for early-stage investments. Supporting his insights with data, he highlighted that the median pre-money valuation of venture companies is on a recovery trend, comparing Q1 2023 to Q1 2024. He also pointed out that while there were only 228 mega-deals (exceeding KRW 1.12 trillion) in 2022 and 2023 combined—the lowest since 2017—the emergence of mega-deals involving AI-based companies is becoming more frequent in 2024. 

Park emphasized, "SaaS companies continue to command high valuations, but the key trend here is the AI wave." According to his data, the release of ChatGPT in Q4 2022 triggered a surge in AI-related investments, leading to an expansion in AI's share of the VC landscape. U.S. VC investors are increasingly aggressive in securing stakes in even small AI startups, reflecting the growing significance of AI in the market. 

The outlook for U.S. venture capital in 2024 presents a complex landscape. Senior Investment Manager Park Ji Hyung observed, "The number of startup bankruptcies is rising due to failures in securing funding," adding that "VC investors are highly interested in new AI technologies, which is translating into active investments." He also noted that investors are closely monitoring expectations for IPO recovery, potential interest rate cuts, and developments surrounding the U.S. presidential election later this year. 

In the session on "Investment Pitching (IR) Insights," Park discussed common mistakes made in IR materials and highlighted factors that can either attract or deter VC investors from founders. He offered practical advice for current and aspiring entrepreneurs, as outlined below. 

Many entrepreneurs focus heavily on their company's past achievements. However, as the investment adage goes, "Investors pay for the future." This highlights that investors prioritize a company's plans and potential for future growth over its past accomplishments. 

Park emphasized the importance of presenting a logical and coherent process in an IR pitch. Investors are not just looking for forecasts; they want to see a clear connection between the business's current performance and its potential to achieve significantly larger results within the next 5 to 7 years. Entrepreneurs should focus on demonstrating how their present achievements will drive future growth and create sustainable, long-term value. 

Park concluded the lecture by highlighting the importance of a compelling vision for founders. He emphasized that founders should present a vision so powerful that it leaves investors feeling captivated by the company’s potential. Moreover, founders must convey their determination to dominate their industry, demonstrating both ambition and focus. 

“The goal is for investors to leave your IR presentation thinking, 'I have to invest in this company,'" Park advised, offering the audience a clear takeaway on how to captivate and secure investor interest.