Hyundai Corporation’s CVC Has Made its First Investment in Armored Fresh, a Vegan Cheese Manufacturer
Prologue Ventures plans to invest KRW 5 billion in Armored Fresh which was chosen as a future unicorn by the Ministry of SMEs and Startups
Prologue Ventures, Hyundai Corporation’s Corporate Venture Capital (CVC), has decided to make its first investment in Armored Fresh, a vegan cheese manufacturer. Armored Fresh was recently selected as a future unicorn by the Ministry of SMEs and Startups. It has attended diverse global expos including 2022 Consumer Electronics Show (CES) and 2022 Fancy Food Show held in the US earlier this year, successfully attracting investment from the US Collaborative Fund. Starting from the 2nd half of this year, it plans to actively carry out its global business and therefore is expected to be listed on NASDAQ.
According to an investment banking industry source, Prologue Ventures has recently decided to set up Prologue New Technology Investment Fund One to invest KRW 5 billion in Armored Fresh. This decision was made after Armored Fresh raised KRW 27 billion Pre Series B in the first half of this year. Armored Fresh successfully attracted a Series A investment of KRW 6.2 billion in December 2020.
Pre Series B investors include Korea Development Bank, Hanwha Investment & Securities, Daesung Private Equity, Sejong Venture Partners, UTC Investment, Hana Securities, Open Water Investment, Lotte Ventures, D3 Jubilee Partners, NH Venture Investment, and Aju IB Investment.
Armored Fresh was launched as a marketing firm in 2001 and has produced Korea’s first vegan cheese made with almond milk. Unlike existing vegan cheese made with coconut milk, almond milk is used as a main ingredient, going through the same fermentation process as general cheese. This year, the company established a US subsidiary in Virginia. It also operates various types of brands including “Cheongnyeon Ddeokjib (rice cake fusion dessert)”, “Woozooin Pizza (frozen oven pizza)”, and “Mom & Daddy (pet brand)”. At the end of last year, its sales reached about KRW 9.5 billion.
Prologue Ventures is a new technology project financing company whose paid-in-capital is worth KRW 11.0 billion invested by Hyundai Corporation and Hyundai Corporation Holdings. The two companies have equity stakes of 81.8% and 18.2%, respectively, in Prologue Ventures. Shin Kwan-ho, former director for NH Venture & Investment, was appointed as CEO and President of the financing company.
CEO Shin earned his bachelor’s degree in business administration from Indiana University Bloomington before joining Samsung SDS to work in the fields of IT Global Consulting and Business Planning. He also worked for Korea Technology Investment Corporation (current SBI Investment), LIG Investment & Securities (PE team), Union Investment Partners, Hanwha Securities (New Technology Project Team), and NH Venture Investment. He actively engaged in major deals for Tictoccroc (childcare matching platform), JAANH Group (global luxury platform), and others, as well as Doosan Heavy Industries’ Convertible Preferred Stocks and SK D&D.
CVC funds refer to venture investment firms in which business corporations function as major shareholders. At the end of 2020, the bill to amend the Fair Trade Act passed the National Assembly, enabling holding companies to own CVC in a limited manner. New technology project financing companies refer to those that provide funding to businesses trying to develop or use new technologies for commercialization. Unlike venture capital firms only offering funding to SMEs with a business history of 7 years or less, the financing companies are not subject to any related limitations.
August 03, 2022, Financial News