Japan-headquartered telecommunications group SoftBank has entered discussions to provide roughly $500m of capital for Latin America-based investment vehicles in the form of limited partner contributions, Reuters reported yesterday.
The move is linked to the $5bn Latin America-focused investment fund SoftBank launched in March this year. The vehicle has since made several large investments, most recently leading a $250m series D round for Brazil-based rental property marketplace Quintoandar this week.
Executives from SoftBank have told fund managers it intends to spread about $500m across five to 10 funds, three people with knowledge of the matter told Reuters. The financing would help support innovation but would also ensure SoftBank has more control over venture capital activity in the region as a whole.
The firm contributed to the $600m recently closed by Argentina-based venture capital firm Kaszek Ventures across two funds, and has committed to invest in the latest fund being raised by Brazil-based investment firm Valor Capital, according to Reuters.
Interestingly, Kazsek has participated in three of SoftBank’s last four Latin American deals, also investing in rounds for logistics service Loggi and used car e-commerce platform Volanty.
SoftBank is also speaking to Atlantico, a VC firm formed earlier this year by a co-founder of investment firm Canary, but a source told Reuters it had not reached an agreement with another Brazil-based VC firm, Monashees, which is currently raising $250m for its next fund.
