Mubadala to launch $400M European tech fund
ABU DHABI: Abu Dhabi’s Mubadala Investment Company said Wednesday it plans to launch a $400 million fund to invest in leading European technology companies.
The state-owned firm is looking to set up a technology hub in Abu Dhabi, capital of the United Arab Emirates next year, aiming to attract leading tech companies. It set up a venture capital arm, Mubadala Ventures in late 2017 to oversee and manage the $15 billion commitment to the SoftBank Vision Fund.
Japan’s Softbank Group will participate in the fund as a strategic investor via its subsidiary, SIMI U.S. Holdings Inc., a statement from Mubadala said.
The fund will be managed by Mubadala Ventures, and will target founder-led tech companies.
Through the European fund of funds and direct fund strategy, Mubadala will also help European tech companies to set up operations in Abu Dhabi to target the Gulf and Middle East markets.
“We see strong potential in the European tech ecosystem with an array of dynamic, founder-led companies, seeking funding and support from a committed partner,” Ibrahim Ajami, director of Mubadala Ventures said.
The strategy builds on the foundations that Mubadala has built in the United States, he added. Mubadala Ventures, with an office in San Francisco, also oversees and manages Mubadala’s $15 billion commitment to the SoftBank Vision Fund, the Mubadala Ventures Fund 1, a U.S.-focused early stage venture fund, and a fund of funds program that includes Data Collective, 8VC, Foundry Group and Upfront Ventures as part of its funds portfolio.
“The U.K. and Europe has some of the world’s most exciting startups and we would like to see more companies accelerate through the startup stage to achieve sustained growth at a global level,” said Ron Fisher, director and vice chairman, SoftBank Group.
Mubadala ventured into the tech sector in 2007, acquiring a significant stake in Advanced Micro Devices. It owns semiconductor maker, GlobalFoundries, Al-Yah Satellite Company, Cognit, a joint venture with IBM and some other investments.