Nexon is launching a long-term investment program of up to 250 billion won to discover early intellectual property (IP) from game startups and new developers. The initiative will involve collaboration with the government and specialized venture capital (VC) firms to provide funding from the early stages and continue with additional investments for global market entry.
On August 20, Nexon announced the launch of a long-term investment program aimed at supporting early-stage developers and new IPs, in partnership with the government and game-focused VCs. This investment is intended to secure Nexon's future growth drivers while assisting domestic game startups in securing funding.
The investment targets include new IPs with global expansion potential, next-generation live service games based on user acquisition marketing, and developers utilizing AI technology. Nexon plans to inject scale-up funds directly when developers transition from early stages to global live services and marketing, particularly around closed beta testing (CBT).
Nexon Partners, Nexon's investment subsidiary, and Kona Venture Partners, a game-focused VC, are participating in the investment structure. The two firms have launched the 'Kona Global IP Investment Fund' with a total size of 120 billion won, which includes 60 billion won from the Ministry of Culture, Sports and Tourism's IP fund.
Roles in the investment stages are divided, with Kona Venture Partners responsible for discovering and nurturing early-stage companies from seed to Series A, while Nexon Partners will co-invest in some Series A rounds and participate as direct investors in subsequent stages.
Game startups often require additional funding as they move from early development to closed beta testing (CBT), open beta testing (OBT), and scaling up for launch. Nexon aims to expand funding for companies in the so-called 'death valley' phase through a structure that allows for follow-up investments after initial funding.
Nexon has chosen an 'open ecosystem' approach for this investment, meaning that the funded developers will not be required to enter into publishing contracts with Nexon, allowing them to grow as independent entities.
The first investment reviews will begin in the second half of this year. Through this program, Nexon plans to fill the funding gap in the early investment market while securing new IPs and technologies.
Kim Han-jun, Nexon's Chief Investment Officer (CIO), stated, “Securing next-generation IPs and unique technologies proactively is Nexon's most important business challenge to maintain leadership in the global gaming market. Through public-private collaboration, we will fill the gaps in the early investment market and establish a long-term ecosystem investment program to ensure promising startups can grow on the global stage.”
* This article has been translated by AI.
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