OpenResearch, a nascent AI search engine startup, is facing an imminent collapse due to the alleged misappropriation of investment funds by its representative for personal use, including gambling, and his subsequent disappearance. Established in July of the previous year, the company rapidly garnered significant attention from the venture capital (VC) industry, primarily due to its founder, Kim Il-doo, a former CEO of Kakao Brain, and his team composed of ex-Kakao Brain developers, which fostered high expectations for its AI technology.

The company's investment trajectory was remarkably swift and successful. Within two months of its establishment, in September of the previous year, OpenResearch secured an exceptionally large seed investment of ₩10 billion (approximately $10,000,000 USD), attracting major domestic VCs. Building on this initial success, the company launched its AI search engine, 'oo.ai,' in March of the current year. The 'oo.ai' service was critically acclaimed for its superior speed and advanced summarization and organization functionalities compared to existing AI search engines. It achieved rapid user adoption, surpassing 1 million Monthly Active Users (MAU) within six weeks of launch (April) and 2 million MAU by May, with a stated goal of reaching over 10 million MAU within the year.

Riding on this momentum, OpenResearch initiated a Series A fundraising round, aiming to secure ₩50 billion, with the company's valuation recognized at approximately ₩200 billion. Market response to the Series A round was highly positive, with reports indicating that ₩40 billion was already committed by potential investors.

However, this promising trajectory was abruptly halted by the representative's alleged "personal deviation." According to industry sources, the representative used a portion of the investment funds for illicit personal activities, specifically gambling, and is currently absconding. This development has sent shockwaves through the investment community.

The immediate consequences are severe for early investors. Mirae Asset Venture Investment and Mirae Asset Capital, who played a significant role in the initial seed round, are facing substantial losses, estimated to be in the billions of Korean Won. These firms had placed a considerable bet on OpenResearch's technology and the founder's pedigree. Conversely, investors who were preparing for the Series A round expressed relief that the scandal emerged before their investments were formally executed, thereby avoiding direct financial losses.

The operational status of 'oo.ai' reflects the crisis; its search functionality is currently restricted, with the company's website citing "internal circumstances" and promising future announcements. The incident has raised critical questions within the VC industry regarding due diligence, risk management protocols for early-stage investments, and the legal recourse available to investors. Industry experts suggest that unlike business failures due to market conditions, a personal misconduct issue makes the prospect of business recovery highly improbable. Seed investors are now grappling with the complexity of potential legal actions and the challenging task of reporting the losses to their Limited Partners (LPs).