Brief: SoftBank’s $93b tech fund is the largest ever in history

Photo credit: MIKI Yoshihito

The news:

• Japan’s SoftBank has announced the first closing of its tech-focused Vision Fund with US$93 billion in confirmed backing. The fund is aiming to meet its US$100 billion target within the next six months.
• SoftBank has committed US$28 billion to the fund, including US$8.2 billion from its stake in UK chipmaker ARM.
• Other backers include Apple, Foxconn, Qualcomm, Sharp, and UAE sovereign fund Mubadala. Saudi Arabian sovereign fund PIF is contributing up to US$45 billion.

Why it matters:

• According to The Wall Street Journal, the SoftBank Vision Fund is by far the largest tech-focused investment fund ever raised, dwarfing second-placed Silver Lake Partners’ fifth fund which closed out at US$15 billion in April this year.
• While emerging technologies such as artifical intelligence, genetic engineering, robotics, and smart devices are seen as being the fund’s bread-and-butter, SoftBank’s statement indicated it will target startups in these areas as well as established multi-billion-dollar companies.
• SoftBank has already negotiated about a dozen deals for the fund, including its US$1.4 billion investment in India’s Paytm. The Wall Street Journal further reports that all SoftBank investments over US$100 million will now be carried out through the Vision Fund, with the exception of those made in ride-hailing firms.

Source: The Wall Street Journal