SoftBank Group aims to raise a total of $108 billion for the second Vision Fund, which would make it even larger than the first, unprecedented $100 billion effort.
Sunday 08, September 2019 BY KUDAKWASHE MUZORIWA
Abu Dhabi’s Mubadala Investment Company is expected to invest in SoftBank Group's second Vision Fund in the last quarter of 2019, following the UAE and Saudi Arabia’s two-thirds contributions to the Japanese conglomerate’s technology and innovation-focused $100 billion Vision Fund 1 in 2017.
Mubadala committed $15 billion to Vision Fund 1 while Saudi Arabia's Public Investment Fund committed $45 billion.
The second fund is also expected to collect money from Apple, Microsoft as well as Foxconn Technology Group and the sovereign wealth fund of Kazakhstan.
Masayoshi Son, SoftBank's Chief Executive Officer also won broad support from Japanese financial institutions with seven identified as signing MoUs to participate. The Japanese financial firms that have signed MoUs are Mizuho Financial Group, Sumitomo Mitsui Financial Group together with Mitsubishi UFJ Financial Group as well as Dai-ichi Life Holdings, Sumitomo Mitsui Trust Holdings and Daiwa Securities Group.
In March 2019, Mubadala partnered with SoftBank and Microsoft to launch the AED 520 million Hub71 initiative, a new platform to support high tech start-ups. The initiative will see US-based Microsoft, providing technology and cloud services to the businesses that join the hub while Softbank will be active in the hub and support the expansion of companies in which it has invested.
Additionally, the Financial Times reported in April 2019 that Mubadala was collaborating with SoftBank to attract some of the world’s most valuable start-ups to a new technology hub in Abu Dhabi
The sovereign wealth fund was in talks with companies such as Improbable, Oyo as well as Plenty, SenseTime and WeWork to set up offices in the Abu Dhabi, all of which have raised money from SoftBank’s Vision Fund.
Mubadala, with assets under management of $229 billion, is an investor in pioneering technology firms including AMD, Global Foundries and others. It opened an office in San Francisco in 2017 with a dedicated team and has made several investments in Silicon Valley as part of a partnership with SoftBank Group, reported Reuters.