When Everyone Shouts AI… Wadiz Partners Sees "The Best Opportunity Since the Founding of Korea"

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"Never before have Korean products, content, and culture been as loved as they are today. While everyone is shouting about AI (artificial intelligence) and deep tech, I believe there is greater opportunity in lifestyle and K-beauty brands."

So Kang-seop, CEO of Wadiz Partners, recently told Money Today, "This is the best time for K-brand entrepreneurs," adding that he sees consumer goods markets as promising investment destinations even as investor funds pour into AI and deep tech.

So (CEO) stated, "With growing global interest in Korean products and culture, the government has also begun to view small business owners not merely as recipients of protection but as drivers of growth." He further explained, "In particular, the introduction of Lycorn and LIPS (Local Investment Promotion System) by the Ministry of SMEs and Startups has significantly improved access to capital markets for non-technology companies."

Lycorn is a program designed to nurture promising small businesses into corporations with valuations reaching 1 trillion won. LIPS is a program that links private investment with government support to help scale up (expand operations) high-potential non-metro area small businesses.

Wadiz Partners, led by So (CEO), is the corporate venture capital (CVC) arm of Korea's largest crowdfunding platform, Wadiz. It focuses its investments on 'entrepreneurial small businesses' in brand consumer goods sectors such as K-beauty and lifestyle. Previously selected as the first fund of funds (Korea Venture Fund) Lycorn Fund manager (GP), it is now active as a private operator for LIPS.

A favorable environment does not guarantee success. Although the brand startup ecosystem has become more supportive due to the spread of Hallyu and institutional backing, ultimately, differentiated competitiveness is required to survive. He noted, "In the past, emotional branding alone could secure consumer choice, but today consumers compare products much more carefully." He added, "Ultimately, only functionally differentiated products can survive."

Beyond functional differentiation, So (CEO) cited fandom (loyal customers) and global scalability as key conditions for growth brands. He emphasized, "It is not enough to make a single sale; there must be a fandom that drives repeat purchases." He further stressed, "Since the domestic market has limitations, businesses must be designed with the global market in mind from the outset."

A prime example of this success formula translating into actual results is Seol Lab, identified by Wadiz Partners. Seol Lab operates the brand 'Onsha', which applies freeze-dried powder derived from hot spring water from Asan, South Chungcheong Province, to shower filters. Rather than being a simple shower filter, it achieved functional differentiation by leveraging hot spring water as its core ingredient. It also built consumer resonance through storytelling that incorporated regional identity. Additionally, the product gained traction in European markets such as France, where hard water is common and causes hair stiffness after showering, leading to improved hair texture post-shower. Currently, the product is exported to nine countries.

The background enabling Wadiz Partners to quickly identify and nurture brands with growth potential like Seol Lab lies in the data accumulated on the Wadiz platform. Data from years of success and failure cases serves as a primary filter for identifying promising brands. Currently, approximately 100,000 project records are stored on Wadiz.

Specifically, Wadiz Partners analyzes consumer response data such as notification request counts, purchase conversion rates, and customer reviews to select projects at the top 5% level. This is complemented by So (CEO)'s investment screening experience gained during his 15-year tenure at Korea Development Bank. The process involves comprehensively evaluating entrepreneurs' capabilities, business vision, and growth potential for candidates filtered through data analysis before making final investment decisions.

So (CEO) emphasized that to create more unicorn cases (private companies with corporate valuations exceeding 1 trillion won) in the consumer goods sector, new investment methods and exit models are necessary.

He stated, "The consumer goods sector requires active small exits and fast exits. Only then can LPs (limited partners who provide capital to funds) perceive consumer goods as attractive investment destinations."

Unlike deep tech companies that can utilize the technology-special listing system, consumer goods companies often take considerable time to reach an IPO (initial public offering). Expecting quick M&A (mergers and acquisitions) is also difficult. While there are many brand entrepreneurs, the number of companies capable of acquiring them remains limited.

To overcome these limitations, Wadiz Partners has moved beyond equity investment to introduce project investment and brand intellectual property (IP) investment. The firm is experimenting with new forms of investment and exit models.

Project investment involves investing in specific new product development or production projects rather than company equity, with returns collected based on performance. Brand IP investment entails a structure where investors secure rights to a company's brand IP for a certain period and receive royalties from the invested company.

So (CEO) said, "Our goal is to create more cases where K-brand companies grow and achieve successful exits." He added, "Wadiz Partners will strive to become the most specialized investor in the field of entrepreneurial small businesses."

[Money Today Startup Media Platform Unicorn Factory]