SK-backed social impact startups see higher corporate values

South Korean social impact startups backed by the country’s second-largest conglomerate SK Group enjoyed higher corporate values with two of the newly established companies logging enterprise values of more than 10 billion won ($75.7 million).

DoBrain Inc., a startup for children with developmental disabilities, and EN2CORE technology Inc., a startup of eco-friendly energy production, have raised 21 billion won and 12.5 billion won, respectively, as their corporate value topped the 100 billion won mark this year, SK said on Friday.

The two companies are among the seven startups the group selected for its Impact Unicorn program to develop those newly established and market-oriented ventures committed to solving cultural, environmental and/or social issues into sustainable enterprises.

Company values of those startups including CrePASS, a financial service provider for vulnerable people with weak credit ratings, and Netspa, a startup collecting marine wastes and producing recycled materials, have grown 2.6 times on average in three years, according to SK. Those seven companies have raised 66 billion won in total from investors including the group.

EIGHT IMPACT UNICORNS

SK picked an artificial intelligence social venture Testworks as the program’s eighth member and provided 100 million won for its business on Thursday. The group also gave 80 million won to a remote workspace startup Alicorn Inc., which has been in the program, for its global expansion.

SK launched the program in 2020 to provide social impact startups with financial support and chances for cooperation with the conglomerate’s affiliates. It also helps their fundraising while supporting them with mentoring and public relations.

The group aims to take the lead in solving social issues by helping innovative social startups grow through the program, a group official said.

“We need star social venture companies to create a virtuous cycle, in which talented people gather and necessary policies are made,” SK Chairman Chey Tae-won has emphasized.

Write to Mi-Sun Kang at misunny@hankyung.com
 
Jongwoo Cheon edited this article.