Korea’s NH Venture Targets Investments in Israeli Tech Startups

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NH Venture Investment, a branch of NongHyup Financial Group (NH), is looking to invest millions of dollars in Israeli tech startups, aiming to combine Israel’s innovative technologies with Korea’s manufacturing capabilities to create larger global companies. Established in 2019, NH Venture seeks to build on Israel’s deep-tech expertise, including areas such as artificial intelligence, semiconductors, defence, healthcare, and quantum computing.

In July 2024, NH Venture teamed up with OurCrowd, an Israeli investment platform, to establish the Trepont Fund—an $80 million initiative designed to invest in 30 startups across Israel, Korea, and Silicon Valley. CEO Hyun Jin Kim confirmed that NH Venture plans to invest at least $40 million of the fund specifically in Israeli startups. One of the company’s notable investments is in Kardome, an AI voice recognition company that collaborates with Korean giants LG and Hyundai Motors.

During his recent visit to Israel, Kim met with several startups, including Hailo, an Israeli unicorn in the AI space. Kim emphasized the potential for strong collaboration between Israeli innovation and Korean manufacturing, particularly to penetrate the U.S. market. Despite concerns around the ongoing Israel-Hamas conflict, Kim noted that innovation has remained constant in the region, and NH Venture is not deterred by the situation.

The fund is specifically targeting early-stage companies that have already developed proven products. Ely Razin, a partner at OurCrowd, highlighted that Korean interest in Israeli startups has grown, especially following the Israel-Hamas ceasefire.

The relationship between Israel and Korea is well-established, with Samsung, LG, and Hyundai all having venture arms in Israel. Both countries are among the global leaders in research and development.

Seong Ryong Kang, CEO of the Korea-Israel Industrial R&D Foundation, believes the cooperation between the two countries is more seamless compared to other Asian nations due to their complementary industries, and the presence of Korean venture firms in Israel underscores a strong willingness to collaborate.

SoFi Secures Up to $5 Billion Loan Agreement as Fintech Lending Grows

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SoFi (SOFI.O) has finalized a significant agreement with Blue Owl Capital, a leading asset management firm, to secure a loan facility of up to $5 billion. This deal marks a key milestone in SoFi’s expansion into the fintech lending space, as more consumers shift away from traditional banks and embrace digital-first financial services.

WHY IT’S IMPORTANT
The rising trend of high interest rates, stricter bank lending standards, and the growing preference for digital, user-friendly financial platforms have led consumers to gravitate toward fintech lenders. These platforms, like SoFi, are known for faster approval times, flexible credit options, and simplified application processes, making them increasingly popular among borrowers. At the same time, institutional investors are drawn to fintech loans due to their higher yield potential compared to other fixed-income investments.

CONTEXT
SoFi’s two-year agreement with Blue Owl Capital is the company’s largest loan deal to date and highlights the growing demand for personal loans from both consumers and debt investors. Under the terms of the agreement, SoFi will serve as an intermediary by referring pre-qualified borrowers to lending partners or originating loans on behalf of third parties. This approach enhances accessibility to borrowing while continuing to diversify SoFi’s revenue streams. The deal also supports SoFi’s long-term strategy of shifting towards more fee-based income sources, which are less capital-intensive.

In October 2024, SoFi also announced a $2 billion agreement for personal loans with affiliates of Fortress Investment Group.

BY THE NUMBERS
In 2024, SoFi’s loan platform originated $2.1 billion in loans, reinforcing the fintech’s ability to attract capital for personal loans. SoFi’s fee-based revenue surged 74% to $969.9 million, driven by strong performances in origination fees, its loan platform business, and income from interchange, brokerage, and referrals.

US-Blacklisted Zhipu AI Secures Fresh Funding from Chinese State Firm

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Zhipu AI, a Chinese AI startup, has secured 500 million yuan ($69.04 million) in funding from Huafa Group, a state-owned conglomerate based in Zhuhai, Guangdong province. This follows the company’s earlier announcement in January of a separate 1 billion yuan capital raise. Huafa Group’s investment comes amid competition between Chinese cities to back promising AI startups, as Beijing views this sector as vital to its technological rivalry with the United States, according to Zhuhai Special Economic Zone Daily.

Earlier this month, Hangzhou City Investment Group Industrial Fund, a state-backed entity from Hangzhou, also participated in a major funding round for DeepSeek, a competitor of Zhipu AI, securing 1 billion yuan. This aligns with China’s push to strengthen its AI capabilities, as DeepSeek‘s large language models have gained attention for allegedly matching the performance of Western counterparts at lower development costs.

Founded in 2019, Zhipu AI is widely recognized as one of China’s “AI tigers”. The startup has drawn investments from prominent tech giants such as Tencent, Meituan, and Xiaomi, across over 15 funding rounds, according to business registration platform Qichacha. In July 2024, Zhipu AI was valued at 20 billion yuan.

The latest funds will be directed toward advancing the development of its GLM foundation model and furthering the company’s technological innovation and ecosystem expansion. However, this investment comes after Zhipu AI and its subsidiaries were added to the U.S. Commerce Department’s export control entity list in January, which prevents the company from procuring U.S.-made components.