Mubadala plans $400m European tech fund

Fund to focus on founder-led, highgrowth firms with global scale

Abu Dhabi’s Mubadala Investment Company yesterday announced its intention to create a $400 million (Dh1.47 billion) fund to invest in European tech companies at the ongoing London Tech Week.

The fund will be managed by Mubadala’s VC arm, Mubadala Ventures. It will work closely with early-stage UK and European funds, and focus on founder-led, high-growth technology firms with global scale and impact.

SoftBank Group will be a strategic partner through its SIMI US Holdings I, Inc. investment subsidiary.

Mubadala Ventures will also facilitate the process for European tech companies to establish operations in Abu Dhabi to target the Gulf and Middle East markets.

Strong market

Waleed Al Mokarrab Al Muhairi, Deputy Group CEO and CEO of Alternative Investments and Infrastructure at Mubadala, stated: “We believe the UK is a very strong market for future technology innovation and entrepreneurship.

“Mubadala’s investment approach is based on partnership and this is exemplified through the strong working relationship we have established with the SoftBank Group. The launch of a $400 million fund to support the growth of pioneering entrepreneurs complements Mubadala’s global portfolio of investments across the full spectrum of the tech sector.”

Mubadala Ventures said it will expand its fund of funds programme and invest in both established and emerging fund managers across Europe.

Mubadala Ventures also oversees and manages Mubadala’s $15 billion commitment to the SoftBank Vision Fund, Mubadala Ventures Fund 1 — a US-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.

Ebrahim Ajami, Head of Mubada Ventures, added: “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. Mubadala has the global network of large assets and relationships and a partner mindset to accelerate the development of Europe’s high-growth tech companies. “This strategy builds on the foundations that we built in the US with our ventures efforts. We are well-placed to build a bridge to bring exceptional European tech companies to Abu Dhabi.”