Deep Tech Venture Investment Sees Significant Growth in 2024

In 2024, deep tech venture investment reached its highest level in five years, totaling 3.6 trillion KRW. This marks a significant increase of 34% from the previous year, highlighting a growing interest and confidence in the deep tech sector.

Investment Distribution in Key Sectors

Among the various sectors within deep tech, bio healthcare and artificial intelligence (AI) were the most prominent, accounting for significant portions of the total investment. Bio healthcare attracted 33% of the total investment, while AI accounted for 26.7%. The AI sector, in particular, saw an increase of 415.8 billion KRW, with AI software development alone receiving 660.5 billion KRW in venture funding.

Overall, 722 deep tech companies were able to attract venture investment this year, with 682 companies collectively receiving 8.807 trillion KRW. Additionally, 353 companies managed to secure funding amounting to 222.6 billion KRW. The Ministry has expressed a strong commitment to activating venture investment, particularly with a focus on fostering an innovative bio-venture ecosystem and promoting the utilization and dissemination of AI technologies.

Trends in Asian Startup Funding

While the deep tech sector witnessed a surge in investment, the broader landscape of Asian startup funding experienced some fluctuations. In 2025, there was an initial decline in funding, marking the lowest annual total in five years with a 6% decrease from the previous year's levels. However, the fourth quarter of 2025 saw a notable recovery, with the highest quarterly investment at $21.7 billion—a 19% increase from the previous quarter and a 22% rise compared to the same quarter the previous year.

Throughout 2025, later-stage startups received considerable attention, with $10.4 billion in Q4 investments and $30.8 billion for the full year. Early-stage deals accounted for $8.9 billion in Q4, while seed-stage deals amounted to $2.1 billion. AI-related startups continued to be a significant area of interest, securing $16.7 billion in funding, with 38% of this total occurring in Q4 alone.

Regional Leadership and Sector Highlights

China maintained its position as the leader in venture investment across Asia in 2025, with India following closely behind. Despite the overall decline in annual funding levels, Q4 indicated upward momentum, suggesting potential growth in the coming year. Investment in security startups was also notable, with $18 billion invested in 2025, while fintech funding experienced a 27% jump.

Globally, the fourth quarter of 2025 marked the strongest quarter for startup funding since the second quarter of 2022. This was bolstered by a new $110 million fund aimed at investing in early-stage legal tech startups, which includes Series A funding rounds.

Looking Ahead

As the deep tech sector continues to expand, the focus on bio healthcare and AI suggests that these areas will remain key drivers of innovation and investment. The Ministry's efforts to promote an innovative bio-venture ecosystem and the further integration of AI technologies could potentially lead to even greater investment opportunities in the future.

While challenges remain, particularly in the broader Asian startup ecosystem, the positive trends seen in the latter part of 2025 provide a hopeful outlook for sustained growth and investment in the deep tech sector in the coming years.