- Forming a joint fund with the globally renowned VC, Bow Capital
- Focusing on early-stage tech startups in the field of AI, Web3, Digital Transformation (DT), healthcare
- Holds significance in attracting external LPs... leaping into an independent VC and enhancing investment expertise
SK Networks, through its US affiliate, which has expanded direct and indirect investments in early-stage companies home and abroad, harnessing its global network and investment management processes, has successfully attracted external limited partners (LPs), a rare move in the world of corporate venture capital (CVC). This was done through a joint fund formed in partnership with Bow Capital, a globally influential venture investment firm. According to Pitchbook, the global market research firm, the global venture capital(VC) investment market significant decline of nearly 35% compared to 2022. Considering the market condition, it is considered a remarkable achievement.
SK Networks (CEO : Hojeong Lee) announced on February 1 that Hico Management and Bow Capital Management formed a joint fund. This joint fund was formed by Hico Management in collaboration with Bow Capital Management. Hico Management is an investment management subsidiary of Hico Capital that leads SK Networks’ operation in the U.S. The two management firms closed the first round at the end of last year with the participation of external investors. A final round is scheduled to be completed soon.
As for fund management, both companies are looking for investment opportunities in the field of Artificial Intelligence (AI) and Machine Learning (ML).
The joint fund 1st closing ceremony, held on January 31 at Walkerhill Wavehill, was attended by Samuel Kim, Managing Director of Hico Management, and Vivek Ranadivé, Managing Director of Bow Capital and owner of the Sacramento Kings, among other representatives from both companies. Sunghwan Choi, SK Networks President & COO, also attended. Before this, on January 30, President Sunghwan Choi and Managing Director Ranadivé signed a MOU for the ‘SK Networks Renaissance Project’ and expressed to strengthen their cooperation.
Bow Capital operates various investment portfolios based on its close partnership with University of California (UC) system that includes the 10 campuses, 6 medical facilities and hospitals, and 3 national laboratories.
With the new joint fund created by the partnership between Hico Management and Bow Capital, the industry now recognizes Hico Management for its business competency built upon SK's continuous investment in early-stage companies for years as the joint fund helped attract even external LPs this time.
This leads to the expectation that Hico Management will evolve into a competitive independent venture investment firm with its unique and distinct strategy. This will allow Hico Management to strengthen its investment and business capabilities in cutting-edge technologies such as AI and accelerate the business growth through close collaboration.
An official of Hico Management said, "Even amidst the downturn in the investment market, we were able to attract external LPs and achieve a first closing with raising a significant amount of funds,” also added “We plan to continue to grow the fund size by appealing to various global investors and accumulate achievements through managing joint fund, in an aspiration to become a competitive independent VC."
[Photo 1] Samuel Kim(left), Managing Director of Hico Management, and Vivek Ranadivé, Managing Director of Bow Capital and owner of the Sacramento Kings. On January 31st, at the Walkerhill hotel, during the ‘Hico-Bow Joint Fund’ launching ceremony.