SoftBank fund invests US$50mil in Black and Latinx-led tech startups in a year

Softbank's RM412.80mil Opportunity Fund has already allocated half the cash in companies led by underrepresented racial minorities. — REUTERS

SoftBank created the Opportunity Fund barely a week after the murder of George Floyd. The firm committed to invest US$100mil (RM412.80mil) in companies led by underrepresented racial minorities, establishing the largest fund of its kind. A year later, SoftBank has already allocated half the cash and anticipates creating a second fund by year-end.

It’s far too early to tell whether the investments will be successful. The money is reaching about 50 young technology companies around the US and giving them a chance to prove the merits of their businesses before going on to seek more capital from SoftBank or elsewhere.