Algorix Raises $11.5M Series A Led by K2 Investment Partners, Bringing Total Funding to $14M

South Korean enterprise AI data infrastructure startup Algorix has raised $11.5 million (KRW 17 billion) in a Series A round led by K2 Investment Partners, the company announced on Wednesday.

The round brings the company’s total funding to $14 million (KRW 20.6 billion).

A Ventures and GU Equity Partners joined as new investors, while Quad Ventures, Kiwoom Investment, and We Ventures—all of whom participated in the September 2024 pre–Series A—returned for follow-on investment.

Founded in 2022 by Minsoo Kim, a professor of computer science at KAIST, Algorix offers the Akasic platform, a full-stack AI data infrastructure that spans fragmented enterprise data connectivity, collection and transformation, AI inference, and agentic AI execution. The platform’s flagship product, AkasicDB, is an AI-native database engine that unifies graph, vector, and relational databases in a single system.

Algorix’s technical capabilities are backed by objective performance metrics across speed and accuracy. AkasicDB recorded processing performance up to 142 times faster than existing graph databases in the international LDBC SNB benchmark, and demonstrated more than four times the queries per second compared to Milvus, a widely used global vector database, at the same accuracy level in an internal evaluation.

The company’s hybrid RAG (Retrieval-Augmented Generation) technology, which executes graph, vector, and relational search in a single query, showed up to 78 percent higher answer accuracy than conventional RAG in joint research with KAIST. Those results were presented at ACM SIGMOD 2026, one of the most prestigious international conferences in the database field.

Algorix is conducting production and pilot projects with major clients and institutions across defense, manufacturing, finance, and telecommunications, including the Agency for Defense Development, Hanwha Ocean, Hyundai Motor Company, Hankook Tire, KB Securities, Kiwoom Securities, LG Uplus, and KT. The company’s on-premise deployment model has enabled adoption in data-sensitive environments such as defense and finance, where external data transfer is restricted.

Algorix plans to allocate the proceeds to advance the Akasic platform, develop new products scheduled for release in the second half of the year, expand into global markets, and recruit R&D talent. The company will accelerate the conversion of pilot deployments into full production contracts and build international reference customers based on field-validated technology.

“In June, the government announced the national security innovation company initiative—often called the ‘K-Palantir’ strategy—but there are few cases where the underlying database layer is secured with domestic core technology,” said Hyeokryul Kwon, executive director at K2 Investment Partners. “We focused on Algorix’s execution capability, demonstrated through validation of its foundational technology at international academic venues and pilot deployment across diverse industries in both open and closed-network environments.”

Minsoo Kim, CEO of Algorix, said, “We have concentrated on developing a hybrid RAG database engine with the conviction that the success of enterprise AI depends not on models but on understanding data and business context. With this investment, we will advance the Akasic platform to a global standard and establish a new benchmark for AI data infrastructure that ensures the autonomy and safety of AI agents.”

In parallel developments in South Korea’s AI and defense tech sectors, Config recently raised a $27 million seed round to become the “TSMC of robot data,” while JLABS landed an $8.1 million pre-IPO round to fund missile defense localization and prepare for listing. Algorix previously secured pre-seed funding from Kakao Ventures in July to build its unified data layer for enterprise AI.