Leading chip maker, Qualcomm, and Apple are among the major investors in a new 100b tech fund being fronted by Softbank, sources have indicated.
According to sources who are privy to the matter, the fund, which was announced back in October, is made up of contributions from Saudi Arabia, Softbank and other leading institutional global investors. It was reported that Saudi Arabia intends to contribute $37 billion to the fund while Softbank invests $25 billion. The remaining amount, $35 billion, is to be contributed by the likes of Apple and other institutional investors.
‘This fund would be the largest of its kind,’ Softbank, which heavily invests in tech companies around the world, said in a statement.
It is expected that the new fund shall be managed by a totally independent firm based in the UK for five years.
In the past few weeks, the process of implementing the planned fund has been taking shape, with sources indicating that Qualcomm is making the final steps towards actualizing its commitment to the fund. Apple has also been making the final steps towards actualizing its commitment to the new fund, with sources indicating that the company may be considering upping its contribution to the fund up to $1 billion over the life of the fund.
The contribution of Apple to the fund is likely to be of interest to observers. Unlike many of its peers in the tech industry, Apple does not have an investment arm of its own. However, the company has been making independent forays by investing in multiple other companies across the world over the years. Most notably, it has been making a series of investments in the recent past in Didi Chuxing, a popular taxi-hailing app in China.
On its side, Softbank has been making substantial investments in tech companies across the world for a long time now. Recently, the bank agreed to invest $32 billion on ARM, a smartphone chip maker based in the UK. Interestingly, Apple has also been making a series of investments in the chip maker over the years. Before investing in ARM, Softbank had also invested heavily in a Sprint, a telecommunications company.
It is expected that the new fund will spur growth by creating more than 50,000 jobs in the US, according to the President-elect, Donald Trump.