Mubadala to launch $400M Euro­pean tech fund

The Daily Star (Lebanon) - - BUSINESS -

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.

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