South Korean tech giant Naver said on Sunday it will establish an investment-focused subsidiary in the United States to support promising local startups there.
Naver plans to complete the process of launching the new entity, Naver Ventures, later this month in Silicon Valley, the company said in a press release.
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Naver Ventures has already selected Twelve Labs, a South Korean artificial intelligence (AI) startup with operations in the U.S., as its first investment target, reports Yonhap news agency.
It will be Naver’s first overseas investment subsidiary, the company said.
“Silicon Valley is a cradle of innovation where skilled professionals and cutting-edge technologies converge. That’s why we chose it as the base for our first overseas investment firm,” Naver CEO Choi Soo-yeon said.
In light of global economic uncertainty, startups are finding it increasingly difficult to attract investment. Naver aims to help these companies secure stable funding and continue developing their technologies and operations in the U.S. market, she said.
Naver founder Lee Hae-jin said: “Diversity is increasingly important in the AI era. That’s why collaborations with a broad range of partners are essential for Naver.”
Meanwhile, Naver CEO Choi Soo-yeon met with top executives at Netflix in Los Angeles last week to discuss their ongoing membership partnership and explore further collaborations.
According to Naver, Choi visited Netflix’s Los Angeles office Tuesday (local time), where she met Netflix co-CEO Greg Peters and Maria Ferreras, Netflix’s global head of partnerships. Also present were Kim Jun-koo, CEO of Naver Webtoon Entertainment, and Kim Yong-soo, Naver’s chief strategy officer.
The two sides discussed the performance of their partnership, which allows Naver Plus members in South Korea to access Netflix’s ad-supported service for free.
Naver said the partnership led to a 1.5 times increase in new sign-ups for Naver Plus, a paid subscription service that allows various benefits, such as shopping discounts, while Netflix was able to reach a broader user base in South Korea through the collaboration.
Naver highlighted that Choi has led the collaboration between the two companies since last year.