VC Fundraising

SoftBank backer Mubadala commits to backing venture firm DCVC

October 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

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