Mubadala Investment Company, the Abu Dhabi-based investment company, on Wednesday announced it is launching a venture capital arm of its business.
The dedicated ventures investment team will be based in San Francisco, the first Mubadala office in the United States, it said in a statement.
The team will initially oversee three main business areas including Mubadala Ventures Fund I, a $400 million early growth venture capital fund with two main investors, Mubadala and SoftBank.
It will also run a $200 million Fund of Funds that will invest in both established and emerging fund managers. Under this program, Mubadala intends to invest $50-70 million per year in US and European-based venture capital funds.
The team will also oversee and manage Mubadala's $15 billion commitment to the SoftBank Vision Fund, working in close partnership with SoftBank executives in California.
"Mubadala's venture capital business intends to become an active member of the ventures community, leveraging Mubadala's global scale and power," said Ibrahim Ajami, head of the ventures unit. "Our differentiators include a long-term partnership mindset, access to Mubadala's portfolio of global assets across 13 sectors, and our strategic partnership with SoftBank."
"We are excited to partner with Mubadala and invest in their first venture capital fund," said Rajeev Misra, CEO of the SoftBank Vision Fund. "Mubadala's approach to venture capital and their San Francisco office indicates a long-term commitment to the technology community."
The venture capital initiative builds on a decade of investments Mubadala has made in the technology sector, beginning in 2007 with a significant stake in Advanced Micro Devices.
Mubadala also owns GLOBALFOUNDRIES, the world's second-largest pure-play semiconductor manufacturer, Al Yah Satellite Company, Cognit, Injazat Data Systems and Khazna as well as a significant stake in Emirates Integrated Telecommunications Company, known as du.
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