Naver D2SF aims to help Korean startups expand overseas

Naver D2SF head Yang Sang-hwan. (Naver)

Naver D2 Startup Factory (Naver D2SF), the corporate venture capital (CVC) arm of South Korean internet giant Naver Corp., announced plans to support Korean startups’ global expansion,particularly via its base in Silicon Valley, the United States.

Naver Ds2F, which has contributed to the startup ecosystem by discovering and nurturing 115 leading domestic tech startups - including AI semiconductor company Furiosa AI and Crowdworks AI - has set a goal of enabling the emergence of tech unicorns, a category that has been lacking in Korea.

“Naver D2SF has focused on long-term strategic investments rather than short-term profits,” Naver D2SF head Yang Sang-hwan said during the company’s 10th anniversary event held on Tuesday in Seoul. “We have invested in 115 startups over the past 10 years, with their total combined corporate value now at 5.2 trillion won ($3.7 billion).”

The combined corporate value was about 1.4 trillion won for 70 startups as of 2021, meaning it has grown nearly fourfold.

Notably, the survival rate of startups backed by Naver is 96 percent.

“The average five-year survival rate for startups in Korea is about 30 to 40 percent, so this is a remarkable figure,” Yang said.

Unlike financial investors focused on returns, Naver D2SF primarily invests in early-stage startups that have potential synergy with Naver’s core businesses such as AI, robotics, healthcare, and commerce.

About 99 percent of the investments have been made at the seed or Series A stage. One of the most notable success stories is Furiosa AI, which has grown into Korea’s leading AI semiconductor startup.

Although the company began at the idea stage when Naver D2SF first invested in 2017, it now commands attention globally and was even the subject of acquisition rumors involving Meta Platforms Inc. in 2025.

“At the time, many doubted how a startup could make AI semiconductors,” Yang said. “Naver co-designed FuriosaAI’s first chip spec, and we made the first investment to bring it into the D2SF space.”

Furiosa AI has since secured funding through Series C and developed a second chip, even attracting acquisition offers from Meta.

Other key portfolio companies include Clobot, a robotics software developer that is now publicly listed, and Crowdworks, an AI data firm that is also now being publicly traded.

Also attending the press event were Techtaka, a logistics startup working with Naver on same-day delivery, and Movin, which collaborates with Naver’s live-streaming service Zepeto using its motion capture technology.

These startups emphasized the value of both Naver’s service integration and the strong startup community fostered at D2SF.

Looking ahead, Naver D2SF aims to play a larger role in helping Korean startups expand globally. It opened a Silicon Valley office in October 2024 to serve this mission.

“While many unicorns have emerged in Korea, we still have not seen a true tech unicorn,” Yang said. “We want to discover frontier companies capable of global growth and be a bridge to North America.”

D2SF is also increasing direct investment in overseas startups, including a recent investment in Rembrand, a North American startup with AI-based advertising technology.

“We are actively reviewing overseas investments and do not consider nationality a limiting factor,” Yang said. “Some worry that this could reduce domestic investment, but collaborations between overseas and domestic startups can in fact create many positive synergies.”