SoftBank Vision Fund ($100 bn Tech Fund)

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Heads Up!! #Startup #VC #SoftBankVisionFund #SiliconValley #London #SaudiArabia

SoftBank and Saudi Arabia Partnership on a “SoftBank Vision Fund” to be based in London will be investing over 5 years for $100bn tech fund

The new fund, dubbed the SoftBank Vision Fund, will be based in London and seeded with $25bn from SoftBank and up to $45bn from Saudi Arabia’s Public Investment Fund over the next five years, according to a statement from the Japanese telecoms group.

At $100bn, the new fund would be the same size as all funds raised by US venture capital firms over the past two and a half years, according to data from the National Venture Capital Association.

SoftBank said the fund would be investing over a five-year time horizon, which at $20bn a year would represent roughly a quarter of total annual investments in US-based venture-backed start-ups.

The unusually large fund underscores investors’ enduring appetite for tech sector investments, even amid concerns in Silicon Valley about inflated valuations for late-stage start-ups such as Uber and Airbnb.

Mr Son said the SoftBank Vision Fund would be “the biggest investor in the technology sector” over the next decade. The fund will be led by Rajeev Misra, SoftBank’s head of strategic finance, and it may be joined by “a few large global investors”.

His Royal Highness, Deputy Crown Prince Mohammed Bin Salman, Chairman of PIF, commented as follows: “The Public Investment Fund is focused on achieving attractive long-term financial returns from its investments at home and abroad, as well as supporting the Kingdom’s Vision 2030 strategy to develop a diversified economy. We are delighted to sign this MOU with SBG given the long history, established industry relationships and strong investment performance of SBG and Masayoshi Son.”

The fund is on a mission to support Saudi Arabia’s new 2030 economic plan, which includes reducing reliance on fossil fuels and bolstering the private sector.

Mr Son’s vast portfolio of investments has included US carrier Sprint, Chinese eCommerce group Alibaba and internet search engine Yahoo Japan. SoftBank has invested in budding technology companies, including ride-hailing app Grab, US bioengineering start-up Zymergen and online lending group SoFi.

Public Investment Fund (PIF)

The Saudi Arabian Public Investment Fund was established in 1971 to provide financing support for projects of strategic significance to the national economy, and its role has evolved to incorporate a number of different areas. These include holding and managing the government’s stakes in some of Saudi Arabia’s largest and most important blue chip companies. PIF has also set up and managed a number of companies to support innovation, diversification and non-oil sector development within the Kingdom. Furthermore, the institution has been responsible for holding and managing the government’s stake in bilateral and multilateral companies abroad as well as investing selectively in a range of other asset classes internationally.

Furthermore, the institution has been responsible for holding and managing the government’s stake in bilateral and multilateral companies abroad as well as investing selectively in a range of other asset classes internationally.

PIF has gone through major restructuring, and had supervision moved from under the Ministry of Finance to the Council of Economic and Development Affairs, led by His Royal Highness Prince Mohammed Bin Salman Bin Abdulaziz, since March 2015. PIF, under the leadership of His Royal Highness, has revised its long term investment strategy to coincide with the country’s Vision 2030.

Read more info via:

http://www.softbank.jp/en/corp/news/press/sb/2016/20161014_01/

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