SoftBank Grants $5 Billion Fund for Latin American Tech Firms

148

In the latest finance news, Japanese Group SoftBank Corp has launched a new $5 billion fund. The generous fund will make sizable investments in Latin American technology companies. Read on to know more about the SoftBank Innovation Fund.

Read the latest startup news on iTMunch titled, "SoftBank Grants $5 Billion Fund for Latin American Tech Firms"

About the SoftBank Innovation Fund

Recently, SoftBank announced its fund that would initially commit $2 billion to tech startup investments in South and Central America. This would specifically include countries such as Argentina, Chile, Brazil, Mexico and Columbia. The startups would range from areas such as healthcare, financial services and e-commerce to insurance and mobility, among others.

SoftBank already has a Saudi Arabia-backed $100 billion investment vehicle called the Softbank Vision Fund. Till date, it has made sizable investments in companies such as Uber Technologies Inc, WeWork, DoorDash as well as a dog walking app called Wag.

Significant Opportunities in Latin America

Besides the SoftBank Innovation Fund, the financial giant is also establishing a group that will be called the SoftBank Latin America Local Hub. It would be responsible for creating partnerships with companies that are already present in the investment portfolio of SoftBank in order to help them enter the region.

Bolivian native Marcelo Claure has been named the CEO of SoftBank Latin America. He is already the COO of SoftBank Group Corp. in addition to being the executive chairman of Sprint Corporation and the CEO of SoftBank Group International.

In a statement, Claure said, “Growing up in Latin America I witnessed firsthand the creativity and passion of the people. There is so much innovation and disruption taking place in the region, and I believe the business opportunities have never been stronger. The SoftBank Innovation Fund will become a major investor in transformative Latin American companies that are poised to redefine their industries and create new economic opportunities for millions of people.”

The Future of Latin American Tech

The executive officer of SoftBank Investment Advisers Rajeev Misra has stated, “Latin America presents significant opportunities for SoftBank Group, and the Vision Fund will have the ability to co-invest alongside the SoftBank Innovation Fund.”

As of now, the size of the fund is unprecedented in Latin America because it totals the combined investments of venture capitalists in 2017 and 2018. The chairman and CEO of SoftBank, Masayoshi San claimed that “Latin America is on the cusp of becoming one of the most important economic regions in the world, and we anticipate significant growth in the decades ahead.”

SEE ALSO: Amazon Gives Grant for Latest AI Tech to Harvard Hospital

This is the first time SoftBank has created a fund of this magnitude that will be focused solely on one region. The finance conglomerate is yet to determine where the headquarters for this new effort will be located.

Subscribe to iTMunch for the latest news, technology and updates in the word of marketing, finance and startups.