Wednesday 13, June 2018 by Jessica Combes

Mubadala to launch $400 million European tech fund

 

The fund will target founder-led, high growth technology companies with global scale and impact

Mubadala Investment Company (Mubadala) of Abu Dhabi, today announced its intent to create a $400 million fund to invest in leading European technology companies. The fund will be managed by Mubadala Ventures, the venture capital arm of Mubadala. SoftBank Group will participate as a strategic investor via its SIMI US Holdings I, Inc. investment subsidiary. The fund will target founder-led, high growth technology companies with global scale and impact.

“We believe the UK is a very strong market for future technology innovation and entrepreneurship.  Tech Week reinforces both its existing technology base and the call for new investors in the UK.  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,” said Waleed Al Mokarrab Al Muhairi, Deputy Group CEO and CEO of Alternative Investments & Infrastructure at Mubadala.

The announcement was made during London Tech Week, a week-long festival of technology and innovation focused on creating new innovative investment opportunities in the UK.  The fund will work closely with early-stage UK and other European funds. As part of its European strategy, Mubadala Ventures will expand its fund of funds program and invest in both established and emerging fund managers across the continent.

Through the European fund of funds and direct fund strategy, 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.

“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. Innovation and technology continue to play a key role in the economic diversification of the UAE and we are well-placed to build a bridge to bring exceptional European tech companies to Abu Dhabi<” said Ibrahim Ajami, Head of Mubada Ventures.

Mubadala Ventures, which has an office in San Francisco, USA, 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 a part of its funds portfolio.

“We have worked closely with the Mubadala team for a number of years and are impressed with their investment capabilities, collaborative approach and understanding of emerging technologies. The UK 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 of SoftBank Group.

The venture capital arm sits within Mubadala Capital, Mubadala’s financial investment division.  Mubadala Capital, which focuses on the management of alternative assets, invests globally across a range of asset classes, including equity and credit, public and private securities, direct and third-party managed funds, while also managing a number of sovereign investment partnerships.

Mubadala has over a decade of experience of investing in the technology sector, beginning in 2007 when it acquired a significant stake in Advanced Micro Devices (AMD). In addition to its investment in AMD, Mubadala owns GLOBALFOUNDRIES, the world’s second-largest pure-play semiconductor manufacturer; Al Yah Satellite Company (Yahsat), which has three satellites in orbit; Cognit, a joint venture with IBM to bring Watson in Arabic language to the Middle East; Injazat Data Systems, a cloud computing provider in the Middle East; and Khazna, a data center company located in the United Arab Emirates. Mubadala also has a significant stake in Emirates Integrated Telecommunications Company, known as du.  

Features & Analyses

Wealth Management Why is there no inflation?

  Mark Burgess, Deputy Global CIO & CIO, EMEA, Columbia Threadneedle Investments, writes about one of the biggest questions… read more