SoftBank, a Japanese investment conglomerate, announced the launch of its Latin American fund on 14th September 2021. This fund is the second private investment fund dedicated to the technology companies located in Latin American Geography. SoftBank has set this new launch at a preliminary USD 3 billion commitment.
SoftBank dedicates private investment fund in Latin America
In a statement, SoftBank said that this second fund will reconnoiter options to increase the existing capital in the region.
The new fund is built on SoftBank’s USD 5 billion Latin America Fund. This fund was initially announced in March 2019. The fund was formerly recognized as the Innovation Fund with an initial commitment of USD 2 billion in the capital.
According to the firm, the Innovation Fund has generated a net Internal Rate of Return (IRR) of 85%. This net IRR estimate is allocated to the firm’s investment of USD 3.5 billion in 48 companies, that hold a massive worth of USD 6.9 billion (estimated on June 30th, 2021).
The firm has invested in 15 companies, through that fund, which is inclusive of – Rappi, Mercado Bitcoin, QuintoAndar, MadeiraMadeira, and Gympass. Lately, the firm has also co-held a series D round of funding worth USD 350 million in the Argentine finance management application called Ualá.
SoftBank has also participated in uplifting the value of companies like Kavak, Banco Inter, and VTEX. The firm has also backed organizations throughout the Latin American region, including – Chile, Colombia, Brazil, Ecuador, Mexico, and Argentina.
The Latin America funds are led by the Executive VP and COO of the SoftBank Group, Marcelo Claure. Paulo Passoni and Shu Nyatta, Managing Partners of the group, run the Latin American investment team. Alex Szapiro, Operating Partner and the head of Brazil for SoftBank, heads the fund’s operations team.
Overall, the operations and investment teams encompass more than 60 people who work from Mexico City, Miami, and São Paulo.
The Innovation Fund is intended to support tech firms across the Latin American region at all stages of their development. These firms focus on digital financial services, education, healthcare, e-commerce, blockchain, enterprise software, etc.
Masayoshi Son, SoftBank Chairman & CEO, stated that the Latin American region was one of the most eminent regions for the economic development of the world.
Masayoshi stated that that the firm will constantly strive to adapt technological solutions to serve millions of people around the world. He said that with the number of innovations born in the Latin American region, the business opportunities available are forever evolving. Latin America is a critical region for the firm’s expansion.
