Recently, the VC capital investments in blockchain industry are attracting a lot of attention since one of the largest investment venture capital institutions in South Korea, the “Korean Investment Partners” have made investments and other large venture capital institutions have been following the trend, realizing the great potential of the blockchain technology.
In 2016, KIP invested in Korbit, one of the largest exchanges in Korea, gaining almost 5 times the original investment as profit, confirming the potential of the blockchain industry. During 2017, KIP invested about 5 million in BTC Korea, which runs exchanged called “Bithumb”. Other than that, venture capital institutions such as SBI Investment, Atinum Investment, and more, have invested in the blockchain industry previously.
During the time, there had been an increase of venture capital investments in cryptocurrency exchanges, influenced by the popularity of the crypto-investing trend, however, KIP invested in blockchain space for the potential of its growth. KIP expected to profit from long term growth of the industry, disregarding the negative news about the crypto-exchanges. Also, KIP has drawn the line for investing in the crypto-based projects themselves by having bases on the analysis of potential impact and growth, in which they will continue to invest in companies with an impactful potential in the society.
On one hand, TEMCO became the first blockchain company to be invested by KIP, receiving heightened attention around the world. KIP invested in the largest Korean and international corporations such as KakaoTalk, Naver, DOUBLEU GAMES, Market Kurly, and more, at their initial stages. KIP has been investing basis on the potential success of the companies in the past.
KIP’s Director of Investments, Kim Jong Hyun have explained previously the reasons for investing in TEMCO through TEMCO’s first meet-up. Kim explained that the reasons why KIP decided to invest in TEMCO were the applicable technical skills and the business model.
First, TEMCO’s technology was the major importance of making the decision to invest. The fact that TEMCO operates upon the smart contract on bitcoin and as the first company in Asia to become a partner of RSK, knowing that the technical aspects of the company are outstanding compared to other competitors.
Secondly, Kim approved TEMCO’s business model. TEMCO was approved for the details of utilizing blockchain to develop a business, rather than a blockchain business itself. KIP’s directors thought that many startups and blockchain companies do not have a capability to transform the information in the whitepaper to reality, however, TEMCO is developed upon the solid business model that can produce a profitable outcome.
Third, KIP approved of applicability the blockchain. KIP’s Kim Jong Hyun analyzed the applicability of the blockchain and the business model, then found that TEMCO has the potential, knowing that KIP does not make investments in projects that do not have realistic usability capability of the blockchain.
To summarize, Korea Investment Partners highly valued and invested in TEMCO, because of the business model that TEMCO possesses; connecting blockchain based supply chain data platform, a consumer application, market platform, and the BI-tool all together. Also, TEMCO possesses the technology to make the business model into reality, with the ability to apply blockchain in plausible areas.
TEMCO’s securing of the investment from KIP marks a significance in the blockchain space. TEMCO was the first blockchain company ever to be invested by KIP, which is the first time in 30 years of their investment history. Through the securing of the investment, TEMCO proved that existing venture capital may invest in a blockchain company. KIP sees the bright future of TEMCO and the success of the business model just as the many investors and supporters in around the world.
TEMCO: Innovative Supply Chain Data and E-Commerce Solution through Blockchain and Smart Contract Technology.
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