Mubadala Venture Capital Arm to Invest Heavily in US Based Tech Startups
Mubadala Investment Company has a 10-year track record of investments in advanced technology across the world, especially the United States. As technology becomes the focus of numerous industries, Mubadala aims to become one of the largest tech investors in the world.
According to The National, the investment company has more than $200bn worth of assets and has been investing in the US and other parts of the world using capital from its three funds: A direct fund, a "fund of funds" program, and Vision Fund. Mubadala also takes ownership of some companies that it invests in.
In May 2017, Mubadala announced that it has made a US$15 billion commitment to the Softbank Vision Fund along with some other funds. The company also joined the Public Investment Fund of Saudia Arabia, Apple, Foxconn, and other international companies, in co-investing in the $100bn SoftBank fund
In 2018, Mubadala launched its $400m direct fund for its investments in European sector and encouraged new startups to set their businesses in Abu Dhabi by initiating Hub71 in the international financial center Abu Dhabi Global Market (ADGM).
According to Mr. Abdulla Al Banna, director of Mubadala Ventures, every traditional industry is now becoming a technology industry and Mubadala aims to play a key role in this tech transformation by making investments in several life sciences, health care, mobility, artificial intelligence, finance-related technology startups.
The health sector deals with how entrepreneurs use data to transform access, consumption, and delivery of healthcare across the globe.
Mobility and logistics also remain an area of great interest as automation is bringing a colossal change in the mobility of goods and people. Mubadala is also interested in Fintech as it is exploring new and innovative ways of doing business.
"We used to go to [the] bank to get different things done; iPhone kind of brought a strong wave of change and how software solutions and how financial services are accessed and how people access to credit and different areas," Mr. Al Banna said.
In the last two years, Mubadala has invested in many tech companies in the US such as Recursion Pharmaceuticals (a biotechnology start-up based in Utah), Color Genomics (seller of genetic tests to assess cancer and other risks) and Turvo (logistics software start-up), etc.
Last month, Mubadala announced that it has invested in Dh70bn across different sectors, mainly in technology. The group chief executive and managing director, Khaldoon Al Mubarak said that along with the investments in the global market, they are also looking to make huge investments in Abu Dhabi to turn it into a technology hub for the Mena region.