Domestic start-ups to receive funds from overseas backers

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Domestic start-ups to receive funds from overseas backers

The Small and Medium Business Administration (SMBA) said yesterday it has created a $210 million fund for domestic start-ups by attracting $200 million from U.S. investors in Silicon Valley and overseas Koreans.

It is the first such fund using foreign capital to finance domestic start-ups.

The SMBA attracted 91 percent of the total funding from overseas, and it contributed the remaining amount.

A U.S. venture capital company in Silicon Valley will be in charge of managing the fund. “When the U.S. company manages the fund there is an advantage that we can utilize the know-how of developed countries,” said a spokesman for the SMBA.

The companies to be invested in will be domestic start-ups that have excellent technologies in the fields of mobile devices, apps, social network services, software and health care.

The SMBA plans to help start-ups in their early stages to enter Silicon Valley after incubating them in the domestic market for one to three years. It will also help those companies to grow into global companies by arranging deals with foreign companies such as Google and Facebook.

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