Israel-based venture capital firm Yozma Group has invested 5 billion won ($4.65 million) in Korea’s photoconductor drums producer Mirae SCI through convertible bonds to set up a biotechnology-focused joint venture, The Investors reported.
In a disclosure, Mirae SCI announced that it has completed selling 8 billion won (7.38 million) worth convertible bonds. “We are establishing a joint venture with Yozma Group Korea to promote new business,” it said.
Mirae SCI is said to use 3 billion won of the investment proceeds to establish Yozma Bio-Holdings that the two firms agreed to set up in April.
Yozma Bio-Holdings will focus on commercializing biotechnology developed at Israel’s Weizmann Institute of Science by transferring the tech to Korean companies. The JV will also offer investment, consulting and global networking services to local biotech startups.
Yozma Group typically invests $1 to $6 million in early stage startups by taking a minority stake in the companies and assisting them throughout their development stage.
The Israeli VC firm, which invests in early-stage startups and pre-IPO companies, was founded by its government and private investors, including Yigal Erlich, former chief scientist of the Israeli Ministry of Industry, and was privatized four years later.
The Yozma Group Korea was established in 2014 with the aim of providing a platform for Asian startups to advance into the global market.