UAE-based Mubadala Investment Company (Mubadala) has planning to create a $400 million fund which will mainly invest in leading European technology companies.
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.
Mubadala said the fund will be managed by its venture capital arm, Mubadala Ventures and SoftBank Group will participate as a strategic investor via its SIMI US Holdings I, investment subsidiary.
The fund will target founder-led, high growth technology companies with global scale and impact, said the Abu Dhabi-based firm in its statement.
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 programme and invest in both established and emerging fund managers across the continent, it added.
Unveling the plans, Waleed Al Mokarrab Al Muhairi, the Deputy Group CEO and Alternative Investments & Infrastructure CEO at Mubadala, said: “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,” he stated.
Ibrahim Ajami, the head of Mubadala Ventures, said: “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,” remarked Ajami.
“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,” he added.
Ron Fisher, the director and vice chairman of SoftBank Group, said: “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,” he added.
Mubadala Ventures, which has an office in San Francisco, US, 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 programme that includes Data Collective, 8VC, Foundry Group, and Upfront Ventures as a part of its funds portfolio.
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, it added.
This article provided by NewsEdge.