Naver’s D2SF Targets North America to Boost Korean Tech Startups

Naver’s corporate venture capital arm, D2 Startup Factory (D2SF), has unveiled plans to support Korean startups seeking to expand into North America, especially through its presence in Silicon Valley. The announcement came during a roundtable event held on May 13 at D2SF’s Gangnam office in Seoul, where the firm marked its 10th anniversary by sharing key achievements and future strategies.

Since its launch in 2015, D2SF has backed 115 early-stage startups across sectors like AI, robotics, blockchain, and healthcare, contributing to a combined corporate value of 5.2 trillion won. Nearly all investments were made at the seed or Series A stage, a phase typically marked by uncertainty. Despite this, an impressive 96% of these startups have survived—a figure well above the national average.

Moving forward, D2SF aims to boost the global competitiveness of domestic tech startups and foster the growth of potential Korean unicorns through continued investment and overseas support programs.

The combined corporate value of D2SF-backed startups has soared to 5.2 trillion won, up nearly fourfold from 2021. Notable success stories include FuriosaAI, Korea’s first AI semiconductor chip developer; Clobot, the first publicly listed robot software firm; and Crowdworks, the first listed AI data platform company. FuriosaAI, which began at the idea stage in 2017, is now a global name and reportedly declined a buyout offer from Meta earlier this year.

D2SF’s head, Yang Sang-hwan, attributes this success to the venture arm’s long-term strategy. Unlike traditional financial investors, D2SF is not under pressure to deliver quick returns. Instead, it emphasizes technology validation, product co-development, and sustained collaboration. Over 220 joint projects have been carried out between Naver and its portfolio startups, with 64% of these firms developing specific business agendas alongside Naver.

The venture arm has also begun extending its reach globally. In October 2023, D2SF launched its U.S. branch in Silicon Valley to help Korean startups access overseas markets and to introduce promising foreign startups to Korea. Yang noted that the current “AI wave” is forcing companies to innovate rapidly and expand globally, adding that D2SF aims to serve as a bridgehead connecting Korean and global startups.

Founders backed by D2SF say the partnership has gone beyond capital support. Many reported easier business development, improved credibility, and access to expert resources like design and marketing consulting. Startups that actively participated in D2SF’s programs, including office space and infrastructure support, reportedly experienced nearly nine times the growth compared to those that did not.

Naver D2SF has played a key role in turning early-stage startups into market leaders, some of which have become Naver’s strategic partners or gone public. According to CEO Choi Su-yeon, this journey has allowed Naver to gain deeper insights while fostering technical collaboration. She highlighted that D2SF reflects Naver’s commitment to its tech-driven roots and supports its vision of building an ecosystem where the next Naver can emerge.