The real estate industry’s biggest VC to invest $40B into a new tech megafund

SoftBank has secured backing from Apple, Goldman Sachs, and the Kazakhstan government.

National /
Jul.July 25, 2019 10:29 AM
SoftBank Chief Executive Masayoshi Son (Credit: Getty Images)

SoftBank Chief Executive Masayoshi Son (Credit: Getty Images)

SoftBank Group’s board is reportedly planning to meet Thursday to approve a $40 billion investment into its new technology fund.

The investment comes after SoftBank secured backing from an unusual configuration of investors that includes Apple, Goldman Sachs, and the government of Kazakhstan.

The Wall Street Journal reported that an anticipated merger of Sprint Corp. and T-Mobile — poised for approval by regulators — will wipe away billions of dollars in SoftBank debt and make room for it to invest.

The fund is a sequel to its $100 billion Vision Fund, launched in 2016 with money from SoftBank itself and the governments of Saudi Arabia and Abu Dhabi. The Vision Fund has provided gobs of cash to real estate startups such as WeWork, Katerra, OpenDoor and Compass, all of which are valued well over $1 billion.

The Journal reports that Saudi Arabia and Abu Dhabi are likely to invest again in the new fund, as SoftBank seeks further backing. Its current backers include Standard Chartered PLC, the emerging-markets bank, in addition to Apple, Goldman and Kazakhstan’s sovereign-wealth fund. It’s also said to be in discussions with Microsoft. [WSJ] — Sylvia Varnham O’Regan

New on The Real Deal: Read our new daily digest for a roundup of all the news and deals, big or small, in New York City. Updated three times a day.


Related Articles

arrow_forward_ios
Softbank CEO Masayoshi Son and Compass CEO Robert Reffkin (Getty, Compass)
SoftBank buys $72M of Compass stock
SoftBank buys $72M of Compass stock
Better CEO Vishal Garg and SoftBank CEO Masayoshi Son (Better.com, Getty)
Better.com lands $500M investment from SoftBank
Better.com lands $500M investment from SoftBank
Clockwise from left: Ori Allon, Robert Citrone, Robert Reffkin and Masayoshi Son (Getty/Illustration by Kevin Rebong for The Real Deal)
Here’s who made bank in Compass’ IPO
Here’s who made bank in Compass’ IPO
From left: Vornado Realty Trust’s 11 Penn Plaza and Apple’s Tim Cook, The Farley Post Office building and Facebook’s Mark Zuckerberg, Durst Organization’s One Five One and ByteDance CEO Zhang Yiming (Getty, VNO, SOM, Durst)
Big Tech firms led office leasing in 2020
Big Tech firms led office leasing in 2020
Robert Reffkin and Ori Allon (Getty, iStock)
What you need to know about Compass’ IPO this week
What you need to know about Compass’ IPO this week
Softbank CEO Masayoshi Son and Adam Neumann (Getty/Illustration by Kevin Rebong for The Real Deal)
Adam Neumann, SoftBank near settlement agreement
Adam Neumann, SoftBank near settlement agreement
From left: Lionheart's Ophir Sternberg, Fifth Wall's Brendan Wallace, Chamath Palihapitiya, Supernova Partners' Spencer Rascoff and Proptech Acquisition II's Tom Hennessy (Getty, LinkedIn, iStock)
These blank-check firms are courting proptech deals
These blank-check firms are courting proptech deals
Katerra CEO; SoftBank CEO Masayoshi Son and Katerra CEO Paal Kibsgaard (Photos via Katerra; Getty; iStock)
SoftBank bails out Katerra with $200M cash injection
SoftBank bails out Katerra with $200M cash injection
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...