Mubadala Capital's $250mln funds eye startups, exceptional founders in Abu Dhabi

Funds include a $150mln 'fund of funds' program and a $100mln direct fund

A U.S. $100 dollar bill is seen December 17, 2009.

A U.S. $100 dollar bill is seen December 17, 2009.

REUTERS/Sam Mircovich

UAE's Mubadala Capital will manage two funds worth $250 million for investments in startups and venture funds, reinforcing Abu Dhabi’s status as a tech and innovation hub.

The funds include a $150 million (550 million dirhams) ‘fund of funds’ program, which will invest in funds that support the Abu Dhabi-based Hub71 ecosystem, by investing in companies that leverage Hub71 for growth and expansion. 

As part of this program, Mubadala Capital, the financial investment arm of Mubadala Investment Company, will commit to three funds as a part of its first funds cohort - San Francisco-based Data Collective Venture Capital (DCVC), Middle East Ventures Partners (MEVP) and Global Ventures.

 The investment program will also include a $100 million (367 million dirhams) fund dedicated for direct investments in early stage technology companies led by exceptional founders that are committed to be part of the Hub71 ecosystem.

The fund aims to invest in a portfolio of 15 founder-led companies, targeting either enterprise or consumer sectors.

Ibrahim Ajami, Head of Ventures at Mubadala Capital, said: “The MENA funds will drive the economic development of Abu Dhabi by stimulating tech investment activity. There’s a huge amount of untapped potential in the UAE and the wider region and we are on the right path to foster more home-grown innovations, attract exceptional talent and accelerate the evolution of a flourishing tech industry in the Emirate.”

Bayzat, a Dubai-based startup that delivers employee experience that’s accessible to every small and medium sized enterprise through a free cloud-based platform, has secured the first investment from the direct fund. Bayzat was one of the first companies to set operations in Hub 71.

Bayzat has raised $16 million (58 million dirhams) in Series B funding from regional and global investors including Mubadala Capital and Point72 Ventures. The company has now raised a total of $31 million (133 million dirhams) and plans to use the capital to invest in its technology and customer experience.

(Writing by Seban Scaria, editing by Daniel Luiz)

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2019

More From Wealth Management