These include investing a reported $2.5bn in Indian e-commerce company Flipkart, as well as leading a $1.1bn funding round for Swiss drug developer Roviant Sciences and contributing the bulk of a $1bn capital injection into US-based sports e-commerce platform Fanatics.
The Vision Fund was originally announced in autumn 2016 and has successfully sought backing from investors ranging from Apple, Foxconn and Sharp as well as sovereign wealth funds from Saudi Arabia and Abu Dhabi.
In addition to these and many other new investments, SoftBank has agreed to transfer some of its own holdings to the fund. These include a 25% share in ARM Holdings, a UK-based chip manufacturer it acquired in 2016, as well as the company’s stakes in SoFi, an online personal finance company, and OneWeb, a satellite-based internet provider.
The Vision Fund was created to help SoftBank implement its “SoftBank 2.0” strategy to help it meet future challenges. According to a spokesman, the company believes “the next stage of the information revolution is under way, and building the businesses that will make this possible will require unprecedented large-scale long-term investment”.
At the first close in May, Masayoshi Son, chairman and CEO of SoftBank Group, said: “Technology has the potential to address the biggest challenges and risks facing humanity today. The businesses working to solve these problems will require patient long-term capital and visionary strategic investment partners with the resources to nurture their success.”
Son added: “SoftBank has long made bold investments in transformative technologies and supported disruptive entrepreneurs. The SoftBank Vision Fund is consistent with this strategy and will help build and grow businesses creating the foundational platforms of the next stage of the information revolution.”
The fund will invest in companies of all sizes, from emerging technology firms to established businesses requiring growth funding.
Its key investment sectors include the internet of things, artificial intelligence, robotics, mobile applications and computing, communications infrastructure and telecoms, cloud technologies and fintech.
Unusually for a venture capital vehicle, the $93bn raised so far consists of a significant amount of debt. While SoftBank’s own commitment to the fund is purely in the form of equity, third-party contributions are reportedly made up mostly of debt. It is thought this structure has been designed at least partly to overcome the issue that many early-stage or fast-growing technology businesses face in trying to borrow against relatively low levels of revenue or cashflow.
As well as the companies mentioned above, the fund has led a $114m series C funding round in artificial intelligence specialist Brain Corp, as well as a $200m series B round in indoor farming company Plenty – both of which reflect the fund’s focus on blue-sky thinking.
Brain’s main focus is on developing self-driving technology for robots in both commercial and consumer applications.
Meanwhile, announcing the Plenty deal, Son said: “By combining technology with optimal agriculture methods, Plenty is working to make ultra-fresh nutrient-rich food accessible to everyone in an always-local way that minimises wastage from transport.
“We believe Plenty’s team will remake the current food system to improve people’s quality of life.”
The fund plans to reach its $100bn goal by the end of 2017, although its $93bn close in May has already established it as the world’s largest technology fund.