Reported by Deal Site / Feb 21, 2024.
iM Investment Partners, a domestic venture capital firm, has announced its investment in the sleep tech startup 'HoneyNaps.' This investment utilizes the 'iM DGB AI Healthcare Venture Fund,' the first project fund established after becoming part of the DGB Financial Group as an investment vehicle.
According to reports from the investment banking sector on the 21st, iM Investment Partners led a recent Series B funding round for HoneyNaps, raising 15 billion KRW. Other investors in the round included KDB Industrial Bank, Quad Asset Management, and Albatross Investment, with iM Investment Partners contributing the largest share. Given that the total commitment for the fund utilized as the investment vehicle is approximately 2.3 billion KRW, it is estimated that iM invested around 2 billion KRW.
With this round, HoneyNaps has secured a total of 21.3 billion KRW in funding, including the 15 billion KRW raised this round. Additionally, based on a recommendation from iM Investment Partners, which is qualified to operate ScaleUpTips, the company has secured an additional 1.2 billion KRW in research and development (R&D) funding.
Founded in 2015, HoneyNaps is pursuing the goal of becoming the first listed sleep tech company in South Korea. The startup has developed an AI-based sleep disorder diagnosis solution called 'SOMNUM,' which has received FDA approval. SOMNUM utilizes an algorithm that allows sleep specialists to analyze patient sleep data much more quickly and accurately than the typical 3-4 hours usually required.
HoneyNaps plans to accelerate the development of its AI models based on eXplainable AI (XAI) and edge computing technology, which processes data in real-time around the device rather than sending it to a centralized server.
Investors have noted that HoneyNaps is receiving licensing inquiries from over 60 tier-1 medical device companies, including those in Australia and the Netherlands, which is unusual for a domestic company. The startup is reportedly expanding supply contracts with major hospitals in the U.S., including those in Orlando, Seattle, and Las Vegas, which are central to the sleep medicine market.
Recently, specialists in sleep apnea, cardiovascular health, and dementia have joined HoneyNaps as key personnel. They plan to conduct clinical trials using AI for diagnosing a range of diseases, including cardiovascular conditions, dementia, and Parkinson's disease. Furthermore, the company aims to strengthen collaborations with global medical firms and pursue an initial public offering (IPO), with Korea Investment & Securities as its lead underwriter.
Ji Young-jong, Director at iM Investment Partners, stated, "HoneyNaps has been developing innovative technologies in the sleep medicine field, which has been an unexplored field in South Korea for the past decade. We expect this investment to accelerate innovation in sleep medicine AI technology and expand supply in both domestic and international markets."
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