a16z Crypto, Mangusta Capital expand in South Korea, citing geopolitical hurdles in Asia and domestic tech innovation
Global venture capital (VC) firms are expanding their presence in the South Korean market. They are increasingly viewing South Korea as a new investment hub and technology partner in Asia, actively exploring opportunities.
The most symbolic move comes from Andreessen Horowitz (a16z), ranked among the world’s top three VCs. a16z Crypto, the firm’s cryptocurrency investment arm, opened a Seoul office last month and appointed Park Sung-mo, former Asia-Pacific (APAC) head at Monad Foundation, as its head of Asia-Pacific operations. By selecting South Korea as its headquarters for Asian expansion, a16z Crypto underscored the market’s potential. Anthony Albanese, COO of a16z Crypto, stated at the time, “South Korea is the world’s second-largest cryptocurrency market, with one in three adults holding cryptocurrencies,” highlighting its growth potential. He added, “We plan to explore new ways to strengthen our position in Asia and expand our geographical influence.”
Investors specializing in tech are also making notable inroads. Mangusta Capital, founded in 2024 by Kevin Jiang — a former founding member of SoftBank’s Vision Fund — recently began recruiting a Korea-focused investment manager. Though the role is part-time or intern-based, the firm aims to build pipelines within South Korea’s tech startup ecosystem by dedicating personnel to scouting local startups and meeting founders. Mangusta Capital focuses on vertical AI and consumer tech as core investment areas. An industry insider noted, “This is still an exploratory phase, but it shows that top-tier global investors are paying attention to the South Korean market.” Plug and Play, which nurtured companies like Uber and PayPal, expanded its Seoul office in 2021 and further extended its presence to Busan last year, intensifying efforts to discover early-stage promising startups.
Government policies are also facilitating global capital inflows. The Ministry of SMEs and Startups formed a global fund last year, selecting three U.S. VCs as managers and mandating investments of at least $30 million (approximately 44 billion Korean won) in South Korean startups. Third Prime Capital, one of the fund’s managers, recently invested 17 billion Korean won in Bon, a domestic defense tech startup. Founded by Lee Do-kyung, CEO of Mark Vision — a notable AI startup recognized for counterfeit detection technology — Bon attracted exceptional attention for securing such a large investment at the seed stage.
Commenting on the VC trend, one industry source said, “Investing in China is geopolitically challenging, while Japan’s market moves slowly and remains domestically focused.” Another added, “Domestic tech startups are gaining recognition for their technological prowess, securing investments and partnerships with global firms like NVIDIA and Google.”
Experts emphasize that sustained global interest depends on tangible success stories. A VC insider explained, “Foreign VCs are coming to South Korea because they see it as a profitable market. For this investment cycle to continue, it ultimately depends on the results these startups deliver.”
