SoftBank backer Mubadala commits to backing venture firm DCVCOctober 21, 2019
One of the SoftBank Vision Fund's top backers said Monday it's investing in Silicon Valley venture firm DCVC and a Dubai-based software company as the government-funded investor revealed plans for $250 million worth of tech investments.
Mubadala, which is owned by the United Arab Emirates and headquartered in Abu Dhabi, has earmarked $150 million for a fund-of-funds strategy targeting funds that will invest in the Abu Dhabi-based Hub71 regional tech ecosystem. Another $100 million in Mubadala capital has been set aside for direct investments into early-stage tech companies aligned with Hub71, which is named after the UAE's formation in 1971. Mubadala committed $15 billion to the $100 billion Vision Fund in 2017.
The firm said its initial fund-of-funds investment will be committed to three funds, including DCVC, the Palo Alto-based firm led by Matt Ocko and Zachary Bogue. DCVC, which in September closed on $725 million for its fifth flagship fund, is an early-stage investor alongside the Vision Fund in such companies as indoor farming startup Plenty and industrial-biology specialist Zymergen. DCVC's partners didn't respond to requests for comment.
Mubadala also is investing in two other firms, both based in Dubai: Global Ventures, a growth-stage investor in enterprise tech startups, and Middle East Venture Partners. Mubadala didn't specify how much it is committing to the funds and Ibrahim Ajami, head of Mubadala's San Francisco-based venture arm, was traveling and couldn't immediately be reached for comment.
Mubadala's first direct investment from the newly announced funds is in a $16 million Series B raised by Dubai-based Bayzat, a provider of business software for payroll and HR administrative uses. Bayzat, one of the first Hub71 companies, has raised a total of $31 million, according to Mubadala.
This article has been updated to correctly reflect Middle East Venture Partners' headquarters.
Featured image of DCVC co-founder Matt Ocko by Kimberly White/Getty Images for TechCrunch