Korean VC Sopoong closes $8M fund for startups focused on environmental impact

South Korea has a plan to become carbon neutral by the year 2050. It will be a different story when you get there.

Korean manufacturers say they are trying to change their ways, but the country's GDP is linked to a number of different industries. Climate-tech startup will help big manufacturers do better in the long run, according to a venture firm in Korea.

While building a bridge between Korean conglomerates and startups in the sector, Sopoong intends to support eco-minded tech founders in South Korea. Sopoong has approximately $22 million in assets under management after closing on $8 million for its sixth fund.

I spoke with Max Sang-Yeop Han, the CEO of Sopoong, to learn about the plans of the VC.

Max Han is the CEO of SopoongVentures.

Han said it was a significant signal for large South Korean corporates to participate as limited partners of environmental and climate tech focused venture capitals. Korean conglomerates are passionate about climate technology and want to take part in addressing the climate and environment issue as they agree that the climate crisis is an urgent problem.

Han said that they will be more like strategic partners to Sopoong after they participated in the climate focused fund. The co-founder and former CEO of Krafton, Gang-Seok Kim, joined Sopoong's climate as a non-profit organization.

After Han acquired the firm, the early-stage VC set up five social impact funds. Sopoong was founded in 2008 by a man who co-founded South Korea's largest internet portal operator.

According to Han, the firm wants to zero in on the climate crisis and other environmental issues through its sixth fund, but other tech sectors will still be on it's radar. Han said that two-thirds of the fund will be invested in the environment and climate tech.

Early stage ventures from seed to series A stages are its sweet spot. The average check size is $150,000 but the firm can go up to $600,000.

MetaTexture is a plant-based food startup that was invested in by the sixth fund.

Nine of the 16 portfolio companies are participating in the Sopoong program. Sopoong invests up to $350,000 into each startup and offers mentorship, co-working space and administrative support.

The firm launched a six-month fellowship program to help climate tech entrepreneurs. 13 people with master's or PhD degrees in environment-related majors have been selected by Sopoong and they are getting $1,700 in grants per month. Sopoong could make a seed investment if fellows start a startup.