As K-beauty exports hit record highs, not only large corporations but also related startups are racing to create dedicated funds to directly nurture indie beauty brands. In particular, a hybrid "investment-plus-execution" model that bundles marketing and global distribution together is emerging as a new standard, moving beyond the conventional approach of providing capital alone.
On the 25th, global creator platform company Nurihouse announced it had recently formed the "Helios Nuri Gongbang Venture Investment Association No. 1" (Nuri Gongbang Fund), a 6.2 billion won ($4.5 million) K-beauty specialized venture fund, and has begun full-scale efforts to identify investment targets. The fund was backed by strategic investors (SIs) with deep understanding of K-beauty and institutional limited partners (LPs).
What sets the Nuri Gongbang Fund apart is its "execution-integrated structure." As soon as an investment is made, Nurihouse's marketing platform "Nuri Lounge" and global distribution infrastructure "Nuri Glow" are automatically linked. Portfolio brands receive a package that includes AI agent-based precision matching using a database of about 500,000 creators, content campaign design, and support for entry into U.S. offline channels such as Costco, Target, and Ulta. This distinguishes it from traditional venture capital (VC) investments that remain purely financial.
Around the same time, CJ ONSTYLE is also pushing forward with a large-scale K-beauty dedicated fund. Olive Young, in partnership with IBK Industrial Bank of Korea, has established a 100 billion won ($73 million) shared growth fund for small and medium-sized partner companies, and separately announced a medium- to long-term plan to invest 50 billion won over three years to foster K-beauty brands.
Private VCs and the government are also joining the trend. In April of last year, the Ministry of SMEs and Startups officially launched a 40 billion won ($29 million) public-private K-beauty dedicated fund jointly funded by Kolmar Korea, Cosmax, and the Korea Fund of Funds. Private VC The Ventures has separately formed a 10 billion won global K-consumer goods fund.
The surge in investment capital is driven by export figures. Of the $10.2 billion in cosmetics exports in 2024, $6.8 billion was generated through brands owned by small and medium-sized enterprises. "We will build a platform ecosystem where capital, content, creators, and brands create a virtuous cycle, presenting a new growth model for the entire K-beauty industry," Nurihouse CEO Baek A-ram said. "If investment and infrastructure are provided simultaneously to indie brands that lack financial resources and marketing and distribution execution capabilities, the increase in exports is expected to be even greater."
