Venture companies are small and their futures are uncertain. Nurturing a venture can be likened to finding a hidden pearl or spotting a promising sprout. A pearl may never shine, and a sprout may wither. Even so, many set out to found startups with the dream of becoming a ‘unicorn company’. Founders typically hit a wall when it comes to financing, and that is where the investor who identifies high-growth-potential companies and invests in them steps in: the venture capitalist (VC). Of course, this is not charity. When the value of a portfolio company rises, they recover returns through an exit. The invested company and the venture capitalist become a community of fate that shares both success and risk.

Park Ju-yeon (45), Senior Investment Manager at Union Investment Partners, did not board the ship of ‘risk capital’ (funding supplied to startups and venture companies) from the very start. She is a former researcher with a PhD in science. She worked at the Korea Disease Control and Prevention Agency (then the Korea Centers for Disease Control and Prevention) and at a science and technology jobs promotion institute. In May 2019, she moved into venture capital and has since worked as an investment manager specializing in the bio·health sector.

Flat, the Kyunghyang Shinmun women-focused narrative archive, met Park at her office in Gangnam-gu, Seoul, on the 14th to hear about the world of venture investing. Park did not hide that the role of an investment manager is ‘busy and stressful’. She also spoke candidly about the mental strain that comes with failed investments and with disappointment in people. Yet she shared stories about investing in a company that said it wanted a world with fewer patients, and about places she nurtured almost like parenting that later did well. Her words carried pride and affection that resonate with the passion of challengers.

- What led you to enter the venture capital industry?

“I began my PhD studies with the dream of becoming a professor. I started my career doing research at the Korea Disease Control and Prevention Agency, but perhaps because research digs deeply into a single topic, I fell into a rut and lost interest. While exploring what could be done with research, I joined an institute for the commercialization of science and technology. It is an agency under the Ministry of Science and ICT that supports the commercialization of science and technology. The work sat more in the middle of the process rather than the very front, so I enjoyed it. That said, a public institution has a more limited scope of work than a private company. Looking at venture capital, I felt there was room for growth and variety, so I took training at the Venture Capital Association and made the move. In hindsight, I think I have a disposition that prefers living busily.”

- What backgrounds are common among people in venture capital?

“Investment managers who back industries requiring specialized technical review, such as bio·health, semiconductors, and materials·parts·equipment, often hold master’s or doctoral degrees. In other sectors, even without advanced degrees, those with curiosity about an industry pursue investments. By sector, there are somewhat more women investment managers in bio·health than in materials·parts·equipment. Some in the industry have directly experienced startups themselves.”

- Have your prior roles helped in this work?

“In bio·health, it is rare for technology to appear out of nowhere at the moment of founding; more often, companies adopt technologies developed at universities or public institutes. In my previous roles, I saw plenty of what is needed to commercialize technology, how patents are structured, and how to collaborate. That experience has helped make reviews of potential investments more seamless. In the end, it all sits within the larger category of ‘commercializing technology’.”

- Within the structure of the economy and industry, what role does venture capital play?

“Large companies can raise funds readily in the capital markets, but small and venture companies may find even bank loans difficult. If they have good technology, the need for development certainly exists. The government seeds such firms by committing to a parent fund (a fund of funds), and we take that and match it with private capital, operating it to invest so companies can grow. We create opportunities to collaborate with large companies or connect them to others to generate synergies. For example, about half of our firm's total investment goes into the content industry. Content often bubbles up from small firms with fresh ideas. By investing in companies attempting what large enterprises do not, we help energize K-content.”

- How do you find companies worth investing in?

“On my commute each morning, if I see a sector in the news that looks poised to improve, I search for related companies. I send cold email·cold call, or I obtain the shareholder register and reach out to existing shareholders to request an introduction. I ask whether they are open to meeting because I am interested. With good companies, investors usually approach first to express interest. In venture capital, you must not hesitate to reach out.”

- Roughly how many investments do you make in a year?

“Last year I invested in about six companies. Half were follow-on support for existing portfolio companies, and the rest were new discoveries. We are also an institution that operates risk capital, but since the pandemic the need to deploy capital more conservatively has grown. So part of the money has gone into companies at a somewhat more mature stage. Still, because early-stage firms ultimately create new markets, we have been allocating there as well. I manage post-investment for a little over twenty companies.”

- It sounds like a highly dynamic and busy job. When is the busiest season?

“March is the busiest. Most shareholder meetings are held in March, so I need to review the agendas for the companies we manage post-investment. Fund reporting sessions are also in March, so I prepare reports that summarize company issues and last year's status. Fundraising seasons are also busy. To do follow-on investments or introduce other investors, I have to write review memos. On a typical day, I check email, news, and requests from fund LPs in the morning; hold meetings or handle post-investment work in the afternoon; and in the evening I network with peers in the industry or with entrepreneurs. Sourcing, reviewing, contracting, and post-investment management run as a daily routine for an investment manager.”

- In bio·health investing, what risks are especially important?

“Usually people come to us wanting to move to the next stage based on experimental results but needing capital. We must be able to judge whether the data are truly good. I believe the next set of data should be predictable. Most bio firms here have tech transfer as their business model, so it is also important whether the technology aligns with trends enough that a global pharma or large enterprise would buy it. For instance, there has recently been strong demand for tech transfer in oncology and dementia treatments. Companies that allow the prediction ‘this technology fits the trend, so buyers may come’ tend to attract capital and list more smoothly. In the end, the key risk is ‘who will buy this’ in the market.”

- What is the current mood in the industry?

“Valuations were heavily compressed after the pandemic, but with a change in administration, the listing market has improved. Because exits ultimately occur in the listing market, those of us investing in unlisted firms at least have expectations that exits will be smoother. Even so, with tech-based companies mainly attempting technology-special listing (a system that lowers the bar for companies with strong growth potential), listings are not happening as much as hoped. Exiting would bring significant gains, but the difficulty of exiting has risen. As listing has become harder, capital is flowing much more heavily than before to companies with higher listing prospects. It is a tough environment for early-stage firms to raise money. Overall, the industry mood is affected by the stock market and by the nature of government capital.”

- What qualities are most important for an investment manager?

“The most important is the ability to judge which industries or technologies have stronger growth potential. I believe you must sustain curiosity about industries and study constantly.”

- What professional ethics must be observed?

“These are basically fund management ethics. From the position of operating a fund and managing capital, you cannot demand anything from, nor receive anything from, portfolio companies. Even if an investor sits on a portfolio company's board, they cannot receive monetary compensation. You cannot ask for anything tied to your own interests from a company you invested in. You also must not disclose a company's information externally. If a competitor obtains it, the damage can be fatal. If something feels off by common sense, do not do it.”

- Finding companies and helping them grow can look like a form of parenting.

“It is indeed like parenting. The company I am currently evaluating is the first one I invested in after entering the industry in 2019. Seeing it grow little by little feels great. It also recently completed a tech transfer. Watching the first company I challenged myself with succeed and prepare to list has been deeply rewarding, and it made me think, ‘Ah, that was the right call.’ From what I have seen, being a CEO is a lonely position. Even when they struggle, CEOs do not have many places to talk. When they reach out in tough times to vent, I try to listen to everything.”

- What are the hardest moments at work?

“Most of it is hard. Just as children sometimes do not listen, issues keep arising at companies. If you assume ten investments, fewer than half go very well; the rest are either average or run into trouble. You can think of us as being constantly under stress, because we must share and shoulder the complaints and difficulties of struggling companies. Reporting to LPs that something did not go well is also tough. The hardest thing, in truth, is when a company's attitude changes before and after investment. Some colleagues have encountered cases where statements made by a CEO before investment turned out to be untrue, or where misappropriation of funds was revealed afterward. Venture investing is built on trust in the CEO and the company, so moments of human betrayal and disappointment are the toughest.”

- It is striking that this brings up people rather than money.

“Mental self-care is extremely important in this job. There are so many such situations, and because you build human relationships with the CEOs you back, their failures make me hurt and feel sad, too. Investment managers have many ways of restoring themselves. I tell my child, ‘Mom had this happen today,’ and remind myself, ‘It is okay, it is okay.’”

- Conversely, when are the joyful moments?

“They come from people. What helps me endure tough days is the dream and hope that come from companies that are doing well. I am happy when a company thrives and brings good news each time we meet.”

- Do you have a senior who is a role model?

“No. This field is a bit every-person-for-themselves and full of ‘I am the best’. I cannot single out one person as a role model, but I find anyone admirable who adapts quickly with passion and gets more done efficiently. Many juniors work smart by using artificial intelligence (AI) tools.”

- What kind of senior and what kind of investor do you want to be remembered as?

“When you invest, in the end the only thing that remains around you is people. I would like to be regarded as ‘someone always sincere, passionate, and doing their utmost’. In this field, people work together for a long time, and interests are tightly intertwined in money and work. Even in those situations, I want to be someone of whom others say, ‘It was good working with that person; I want to work with them again.’ I also hope that by continuing to discover good companies diligently, my child will be proud to say, ‘My mom is an admirable person.’”

- To whom would you recommend becoming a venture capitalist?

“I would recommend it to those who have conviction that, among many fields, they want to explore a specific one actively. First and foremost, you need passion for industries. Finance and other parts can be learned on the job. Rather than a vague notion of ‘supporting founders' dreams’, it helps to have your own view of which field you want to invest in and why.”

- What would you like to say to women interested in this field?

“Because it is a hard, demanding, and busy job, if you are hesitant, it may be right not to do it. Even so, if you are interested, entering through the association's training programs is not a bad way. Unlike general corporations, venture capital firms can sometimes create a seat and hire based on an applicant's will and effort, so you need the boldness to knock. Your initiative matters that much.”