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SoftBank, the large Japanese conglomerate known for making splashy investments, is partnering with Mubadala to fund a new tech startup fund targeting Europe.
Mubadala is Abu Dhabi's official state investment firm and is actually a bit of a common name when it comes anyone that keeps up with Advanced Micro Devices. Mubadala is a major investor in AMD (NASDAQ:AMD), and currently has a stake of over 6 percent in the company after recently reducing their position in AMD. The Abu Dhabi state fund is also well known as the 100 percent owner of AMD's spun-off foundry arm, GLOBALFOUNDRIES.
SoftBank and Mubadala continue to strengthen ties
SoftBank and Mubadala are linked on several projects. Mubadala has invested $15 billion into SoftBank's $100B Vision Fund and is tentatively planning to invest more in SoftBank's future Vision Fund 2 in the works.
SoftBank has funneled billions into technology companies such as Uber, NVIDIA (NASDAQ:NVDA), and ARM Holdings.
The new fund will operate at a smaller scale versus the aforementioned Vision Fund. Roughly $400 million will be set aside for a technology-focused European fund coming this year. SoftBank's stake is about $200 million in the new fund.
The thinking is the same here, the investment firms are looking for high growth potential start-ups to fund. Monies will be used to inject anywhere between $5 million and $30 million in Euro startups, which is a good deal less than the typical multi-hundred million dollar investments that Vision Fund managers have gone after. It could be that this fund is Mubadala tentatively stepping further into new international territories and a larger fund could follow if this first one sees good returns in Europe. Another possible play is that the more successful startups could be ushered into the much larger Vision Fund after they have proved themselves with the Euro tech fund.
The venture will be run out of a new office in London and will be staffed in the upcoming weeks. Company representatives from both Mubadala and SoftBank have declined to comment.