Softbank plugs $200m into European-focused Abu Dhabi tech fund
Japanese investment giant Softbank is said to have stumped up half of the cash for Abu Dhabi state investor Mubadala's new $400m (£309.5m) fund for European tech startups.
Mubadala, which has conversely contributed around $15bn to Softbank's $100bn Vision Fund, said last week that its venture arm would be launching the $400m tech fund this year.
The move will involve a number of Mubadala's team setting up shop inside Softbank's London headquarters, the Financial Times reported citing people familiar with the matter.
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Softbank was announced as a strategic investor in the $400m fund when it was unveiled in June last year as part of London Tech Week.
Mubadala said at the time that the fund will target "founder-led, high growth technology companies with global scale and impact". It will also help European companies establish operations in Abu Dhabi, creating links with the Gulf and Middle East markets.
Mubadala's deputy group chief executive Waleed Al Mokarrab Al Muhairi said the firm believed that "the UK is a very strong market for future technology innovation and entrepreneurship".
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Softbank's Vision Fund, of which Mubadala is the second largest investor, has funded the likes of Uber, Wework and Slack. It has taken a recent interest in the UK, leading a $440m round into savings challenger Oaknorth earlier this month.
City A.M. reported in November that the fund was also in talks regarding an investment in fintech unicorn Revolut, as part of a $500m round to be closed early this year.
Softbank declined to comment, while Mubadala could not be reached for comment.