KB Investment has made a new investment in the fruit variety intellectual property (IP) operator H&B Asia.
According to the venture capital industry, KB Investment recently participated in a new fundraising round by H&B Asia, investing 10 billion won (US$7.2 million). Including investment from other KB Financial Group affiliates, KB Investment has become the second-largest shareholder after founder and CEO Kim Hee-jung.
Founded in 2006, H&B Asia began as a fruit distribution company specialising in IP for new fruit varieties, commonly known as “club varieties.” The company was established by Kim, who previously served as the first head of the Korea office of the New Zealand kiwi company Zespri.
H&B Asia imports newly developed fruit varieties from overseas and produces and sells them domestically through its own farms and contracted growers. The company currently holds IP rights for 58 fruit varieties, including the Envy apple.
KB Investment evaluated the company’s model as an example of how agriculture can transition toward a high-value-added IP-based industry. It noted that H&B Asia has built a stable revenue structure through plant variety protection rights.
A KB Investment official said, “In agricultural powerhouses such as the United States, New Zealand, and China, agriculture models based on club varieties are already spreading rapidly.”
Source: ChosunBiz