Mubadala Capital announced $250 million (Dh918.29m) tech funds on Monday to invest for the region’s start-up scene and to enhance the UAE’s capital’s status as a tech and innovation hub.
The Mubadala Mena tech funds grant a $150 million “fund of funds” programme that will invest in venture funds supporting Hub71 ecosystem in Abu Dhabi. Then, a $100m fund has been allocated for direct investments in early-stage technology companies in either enterprise or consumer sectors. The fund targets to invest in a portfolio of 15 companies.
Mubadala Capital is the financial investment arm of Abu Dhabi’s strategic investment arm, Mubadala Investment Company. It provides investments in venture capital, as well as private and public equities. Its fund of funds arm will commit to three funds as a part of its first funds cohort — San Francisco-based Data Collective Venture Capital, Middle East Ventures Partners and Global Ventures.
Mubadala Ventures is already investing in the US and around the world, using capital from its three existing funds including a $400 million direct fund and a $200m “fund of funds” programme.
In 2017, Mubadala, which has more than $200bn in assets under management, unveiled a venture capital unit to oversee its $15bn commitment to SoftBank’s Vision Fund, as well as two other funds.
Mahmoud Adi, chief executive of Hub 71 said the funds’ launch is a “historical moment” for the entire industry and would have a “massive” impact on the start-up scene in the region.