Abu Dhabi’s Mubadala to launch $400m European tech fund

Abu Dhabi’s Mubadala Investment Company said on Wednesday it plans to launch a $400m fund to invest in leading European technology companies.

The state-owned firm is looking to set up a technology hub in Abu Dhabi, capital of the United Arab Emirates next year, aiming to attract leading tech companies.

It set up a venture capital arm, Mubadala Ventures in late 2017 to oversee and manage the $15bn commitment to the SoftBank Vision Fund.

Japan’s Softbank Group will participate in the fund as a strategic investor via its subsidiary, SIMI US Holdings I, Inc, a statement from Mubadala said.

The fund will be managed by Mubadala’s venture capital arm, Mubadala Ventures, and will target founder-led, high-growth tech companies.

Through the European fund of funds and direct fund strategy, Mubadala will also help European tech companies to set up operations in Abu Dhabi to target the Gulf and Middle East markets.

Read: Mubadala to establish Abu Dhabi tech hub in 2019

“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,” Ibrahim Ajami, head of Mubadala Ventures said. The strategy builds on the foundations that Mubadala has built in the United States, he added.

Mubadala Ventures, with an office in San Francisco, also oversees and manages Mubadala’s $15bn commitment to the SoftBank Vision Fund, the 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 part of its funds portfolio.

“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, SoftBank Group.

Read: Abu Dhabi’s Mubadala partners with Softbank for 15 to 16 technology investments

Mubadala ventured into the tech sector in 2007, acquiring a significant stake in Advanced Micro Devices.

It owns semiconductor maker, GlobalFoundries, Al Yah Satellite Company, Cognit, a joint venture with IBM and some other investments.