Do KOSDAQ venture funds also invest in venture companies before they list (pre-IPO)?

They can. To meet the 15% requirement, a fund must subscribe for new shares or mezzanine securities issued by venture companies, and in 2018 the Financial Services Commission explained that private KOSDAQ venture funds, which typically take a venture capital approach, had an advantage in meeting this requirement by using CBs and BWs of unlisted venture companies from an early stage.

Unlisted companies may see their listing delayed or cancelled and disclose only limited information, so liquidity and valuation risks can be greater than for investments in listed companies.