Korea’s largest crowdfunding brokerage platform operator startup Wadiz said on Feb. 21 it will create a private equity fund to directly invest in startups.

Korea’s fund of funds operator Korea Growth Investment Corp. (K-Growth) will inject around 5.5 billion won (US$4.89 million) into the new fund.

Investment decisions of the fresh fund will be made based on data that it has accumulated over seven years, according to the financial technology startup based in Pangyo, Gyeonggi Province. 

Related:
Crowdfunding platform Wadiz appoints IPO advisor
[INTERVIEW] Wadiz taps into sympathetic motive behind investors

The volume of total investments committed to the fund is yet to be determined and more details will be announced before June.

Over half of the assets in the fund must go to startups, venture companies or small and medium enterprises within two years after it is closed. Wadiz gained regulatory approval to be eligible to become a general partner of PEFs with such purpose in December.

“The new fund will open doors to Wadiz’s new business as an investor, in addition to trading equities of privately held companies,” said Wadiz CEO Shin Hye-sung.

Founded in 2012, Wadiz has brokered some 6,800 rounds of crowdfunding, whose accumulated volume of came to some 117 billion won. It operates platforms for both equity crowdfunding and rewards-based crowdfunding.

By Son Ji-hyoung (consnow@heraldcorp.com)