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NAVER D2SF Invests in Metaverse, E-Commerce and AI Startups in 2021

- D2SF revealed 62% of its investments went into metaverse, e-commerce and AI technology startups with the potential to bring new consumer experiences through next generation platforms

- Accelerator actively makes follow-on investments in businesses and nurtures startup teams with university students to support business growth at every stage

- NAVER’s second HQ building to play role in strengthening collaborations between NAVER and startups

 

2021-12-30

 

NAVER D2 Startup Factory (D2SF), NAVER’s in-house accelerator for startups with innovative technologies, announced that it has invested heavily in promising technologies this year. 62% of the overall investment—including new and follow-on financing—went into startups in metaverse, e-commerce and AI, each receiving 24%, 21%, and 17% of the funding respectively.

 

 

D2SF made significant investments in content technology startups in 3D, virtual reality (VR), and augmented reality (AR) solutions that are compatible with metaverse platforms. Gaudio Lab, which received funding from the accelerator in October, developed an immersive audio technology that accurately and realistically reproduces sound for virtual environments. A service based on this technology was launched in collaboration with NAVER’s video platform. Startups VirtualFlow and Plask produce solutions that can easily generate high-quality 3D content, while Pixelity Games offers technology that allows multiple users to interact in real time in a virtual space.

 

In the field of e-commerce, investments were focused on startups that innovated new online shopping experiences. RECON Labs, which D2SF invested in June 2021, developed a web AR e-commerce solution that automatically creates a 3D model from images of objects taken with a smartphone. Z-emotion on the other hand attracted investments from D2SF with its 3D simulation engine that allows fashion designers generate virtual garments to visualize their clothing designs and experiment with different fabrics, patterns and colors.

 

D2SF also actively made follow-on investments in startups showing great potential. The accelerator recently made its third investment in AI chip startup Furiosa AI, following earlier funding in 2017 and 2019, and also made follow-on investments in logistics IT startup Techtaka. D2SF is supporting systematic growth and strengthening long-term synergy through collaboration with NAVER by actively participating in follow-on investment rounds.

 

Accelerating growth of startup teams with university students

 

NAVER D2SF also has been making consistent efforts to identify and nurture startups by university students. It is currently accepting applicants for its Campus Technology Startup Competition through its website. Selected teams will be given the opportunity to interact with NAVER developers by moving into the collaborative space for startups located at NAVER's second headquarters or the company’s D2SF startup lab based in Gangnam. The competition provides opportunities for young tech entrepreneurs with great ideas and the potential to grow and develop successful innovations. It also offers various growth support programs, including business review and feedback, cloud infrastructure solutions, funding for technology and product development, and investment matching. To date, 46 startups have successfully attracted investments and commercialized their products after participating in the competition.

 

Many student startups that received investments from D2SF showed strong growth this year. AI music composition startup POZAlabs and AI animation startup Plask were discovered through D2SF's Campus Technology Startup Competition at the pre-seed stage, with both companies securing pre-series A funding and planning to start commercializing their services this year. LetinAR, which developed its own optical solutions for Augmented Reality (AR) Glasses, won the CES 2022 Innovation Award, establishing itself as a unique AR hardware maker startup in Korea.

 

Aggressively investing in early stages and actively promoting synergy with NAVER

 

NAVER D2SF plans to actively seek out more technology startups in their early stages and make strategic investments moving forward. D2SF is the first corporate investor for 65% of the startups it invests in. 71% of these startups are also in talks with NAVER about possible collaborations, many of which will likely result in positive outcomes.

 

"This year, NAVER D2SF has invested heavily in technology startups that can bring new user experiences on next-generation platforms, and actively made follow-on investments to pave the way for mid- to long-term collaborations with startups. In the coming year, we will keep investing in early-stage startups, including student startups, and support them according to their growth stage needs,” said Yang Sang-hwan, leader of NAVER D2 Startup Factory. “Our second headquarters will also serve as space where NAVER and startups are able to interact more closely and grow together.”

 

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