S.Korean cloud startups get funding despite recession fears

The contraction of South Korea's investment market has not stopped startups specializing in software as a service (SaaS) to attract funds given that demand for such services to facilitate digital transformation is expected to surge.

Business Canvas, which runs the document-based collaboration tool service Typed, on Monday announced 5 billion won ($3.92 million) in additional Series A or business stage investment, with Sui Generis Partners, Shinhan Venture Investment, Infobank and Kakao Ventures participating. Business Canvas' cumulative investment thus reached 12.3 billion won.

Typed is a SaaS-based service that allows the making and checking of documents without the need to install separate software. Kim Han-jae, CEO and partner at Sui Generis Partners, said, “We decided to invest in Typed given its high competitiveness in the fast-growing global market for B2B SaaS tools.”

Last month, Onda, a B2B SaaS startup in the accommodation sector, also landed investment worth 12 billion won from entities like TS Investment, Nau IB Capital and Industrial Bank of Korea.

And in November last year, Hyperlounge, a management analysis SaaS company for small and medium businesses, secured 10.6 billion won in Series A investment.

LB Investment CEO Park Ki-ho said, "With companies starting digital transformation, demand for SaaS services to solve related problems is surging."

Write to Joo-Wan Kim at kjwan@hankyung.com