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The organization at Future Play, an accelerator (AC) and venture capital firm (VC), which supported HR (human resources management) and PR (public relations) for its invested startups, has been downsized. As Future Play expanded its business from AC to VC and PE (private equity fund management companies), it is interpreted as a move to focus on investment rather than startup incubation. Industry observers also suggested that this could be due to structural limitations in growing solely through the AC model.
According to industry sources on the 21st, Future Play recently saw its organization shrink as members of the 'value-up program team' left the company. The value-up program team was an organization that supported talent acquisition, PR (public relations), IP (intellectual property) utilization, and R&D (research and development) for startups invested in by Future Play. Since the startups invested in by Future Play are mostly at early stages, the team has been operated with the aim of supporting their growth foundations.
A Future Play representative stated, "It is merely a personnel shift," adding, "There is no change in portfolio support." However, industry analysts interpret this as an intention to focus on roles as VC and PE rather than AC. Future Play obtained its VC license in 2023 and acquired its PE management company license last year.
Investment amounts also nearly doubled compared to the previous year, reaching 51.7 billion won last year from 27.2 billion won. The average investment per deal increased by 30% to 1.2 billion won from 900 million won the previous year. As investments in mid-to-late-stage startups increased, the proportion of investments in startups over three years old reached 51.3% as of January to November last year, up 13.9 percentage points from 37.4% the previous year.
A venture investment industry representative said, "Future Play has recently focused on its role as an investment firm by forming large funds and significantly expanding investments," adding, "It appears they have restructured their organization to focus on business models that operate funds like VC and PE and generate fee-based revenue."
Industry: "Shift Away from AC Becomes Evident"
Some analysts suggested that Future Play's organizational restructuring reflects structural issues in the AC industry. Due to limitations in the domestic AC industry structure, there are constraints on growing companies beyond a certain level, leading to the choice of VC and PE models instead of AC.
An AC representative stated, "ACs face restrictions on the operational history of startups they can invest in, and due to regulations, even if invested companies grow rapidly, once their operational history reaches a limit, follow-on investments cannot be made, limiting profitability." They added, "As a result, ACs are quickly seeking new revenue streams by shifting business models to VC with fewer investment restrictions."
According to the Early Investment Accelerator Association, as of the first half of last year, 32 out of 474 ACs (6.8%) obtained VC licenses and are active. Notably, among the top four ACs by investment amount in 2024, all acquired VC licenses, indicating that larger ACs are more proactive in such moves.
An industry representative said, "If this trend continues, everyone will focus on VC instead of AC, and eventually, no one will remain focused on ACs responsible for 'incubating early-stage startups.' To foster the entire startup ecosystem, the Ministry of SMEs and Startups, as the relevant ministry, must take an active role in areas such as easing investment regulations."
[MoneyToday Startup Media Platform Unicorn Factory]
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