South Korea’s IMM Private Equity will invest $50 million in California-based serving robot developing startup Bear Robotics, exploring new investment in line with fast migration to digitalization and robotics.

IMM Private Equity recently pledged $50 million investment during a $100 million fundraising round for Bear Robotics, according to investment bank industry sources on Monday.

Bear Robotics is a Silicon Valley-based startup that manufactures robot servers sold in Korea, the U.S., and Japan. Founded in 2017, the startup’s value is estimated at over 500 billion won ($421 million), when counting in the latest fund addition. Its existing investors include SoftBank and LINE Ventures.

IMM Private Equity chose Bear Robotics as its first direct investment in artificial intelligence-based robotics technology. It is also the first major Korean PEF betting on technologies leading the fourth industrial revolution.

IMM Private Equity with $5.4 billion assets under management has specialized in buyout deals in mature industries for stable returns, rather than newly emerging sectors or technologies.

But it has turned attention to startups in artificial intelligence and other new technology sectors with strong growth potential partly in response to growing demand from its major clients such as public pension fund operators.

Global PEFs have been also rapidly expanding investment in new technologies. France-based Ardian has invested in Italy-based language service provider Translated, and U.S-based Apollo Investment in software and data company FiscalNote.

In efforts to strengthen its growth capital investment team, the Korean PEF recently recruited Yoon Hong-yeol, a technology startup investment specialist from Samsung Nexus Partners, the venture capital firm under tech giant Samsung Electronics. Yoon reportedly led IMM Private Equity’s latest project on Bear Robotics investment.

It has become easier for local PEFs to invest in startups after changes in local capital market law. The latest revision allows PEFs to own small stake holdings below 10 percent without any requirement to appoint an outside director from its team.

By Kang Doo-soon, Park Chang-young and Cho Jeehyun

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