HomeFinanceSoftBank announces second Latin America fund with at least $3 billion

SoftBank announces second Latin America fund with at least $3 billion

WeWork Government Chairman Marcelo Claure throughout an interview with Andrew Ross Sorkin at WeWork headquarters in New York Metropolis on February 10, 2020.

David A. Grogan | CNBC

SoftBank Group is committing $3 billion to kickstart a second fund targeted on investing in start-ups in Latin America, the Japanese tech conglomerate introduced Tuesday.

After a dismal stretch in 2019 that culminated within the scrapped IPO of WeWork, SoftBank has reemerged as a serious tech investor throughout the globe, and is now bolstering its guess on a area that is seeding a rising variety of helpful firms.

Enterprise buyers poured $9.3 billion into Latin America within the first six months of 2021, in comparison with $5.3 billion all of final yr, in keeping with a report from CBInsights. Brazil’s Nubank was not too long ago valued at $30 billion, placing it among the many most dear venture-backed firms on this planet. The corporate is anticipated to go public quickly.

In a weblog submit in July titled “The Latin American Startup Alternative,” companions at enterprise agency Sequoia wrote, “the market alternative is there, and the ecosystem is prepared and galvanized.” Sequoia is an investor in Nubank.

SoftBank’s Latin America Fund II will give attention to investing in firms using applied sciences like synthetic intelligence and scout offers in e-commerce and digital monetary companies in addition to blockchain initiatives. SoftBank has already dedicated $3 billion to the fund, which can function out of Miami, São Paulo and Mexico Metropolis.

“There may be a lot innovation and disruption going down in Latin America, and I consider the enterprise alternatives there have by no means been stronger,” SoftBank CEO Masayoshi Son stated within the launch.

SoftBank working chief and former Dash CEO Marcelo Claure leads investments within the area. The Bolivia native, who additionally serves as govt chairman for WeWork, presently heads the preliminary $5 billion SoftBank Latin America Fund, which launched in 2019.

In current months, Softbank has led a string of huge investments because it goals to depart behind its function within the WeWork disaster. Final month, the corporate led a $200 million funding in digital health tracker Whoop and a $650 million spherical in Indian ed-tech firm Eruditus. It additionally participated in a $325 million financing for sports activities e-retailer Fanatics.

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