May 20, 2017

SoftBank raises $93 billion for its massive tech fund

Eugene Hoshiko / AP

Japan's SoftBank today announced a $93 billion first closing for its long-awaited Vision Fund (with plans to be at $100 billion within six months), which will invest globally in both private and public technology companies.

Why it matters: This is the largest private equity fund ever raised, let alone one to focus exclusively on technology companies.

The unveil: SoftBank timed today's news to President Trump's visit to Saudi Arabia, which committed $45 billion via one of its sovereign wealth funds. Plans for Vision Fund were underway well before last November's election, but Trump took credit after SoftBank chief Masayoshi Son visited Trump Tower and promised that half the money would be invested in the U.S. and that it would create 50,000 new jobs.

Investment strategy: Vision Fund will take both majority and minority equity positions, as Axios previously reported. It also has the right to acquire certain existing SoftBank investments, including deals for Guardant Health, Intelsat, NVIDIA, OneWeb, SoFi and nearly 25% of its stake in British chipmaker ARM.

Investors: Beyond the commitments from Saudi and SoftBank itself ($25 billion ― $8.2 billion of which comes via the in-kind commitment of ARM shares), other investors in Vision Fund include Apple, Sharp Electronics, Foxconn Technology Group, Qualcomm, Sharp Corp. and a sovereign wealth fund of the United Arab Emirates.

More details, per a source familiar with the situation:

  • Saudi Arabia's Public Investment Fund has the right to refrain from participating in deals of over a certain size.
  • It also has the right to sit in on deal meetings, but it doesn't have a vote.
  • The above negotiations delayed the initial close, which originally had been expected to occur months ago.
  • Because of potential conflicts of interest related to existing investments in Uber (Saudi PIF) and Didi (SoftBank), Vision Fund will not participate ride-hail deals anywhere.
  • SoftBank continues to seek the elusive $100 billion mark, in part, because Son has a preference for big, round numbers (seriously). The fact that hitting such a figure could remain six months off, however, indicates that the extra $7 billion remains elusive.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 665,164 — Total deaths: 30,852 — Total recoveries: 140,225.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 3 a.m. ET: 124,665 — Total deaths: 2,191 — Total recoveries: 1,095.
  3. Federal government latest: President Trump announces new travel advisories for New York, New Jersey and Connecticut, but rules out quarantine enforcement. Per the CDC, residents of those states must now "refrain from non-essential domestic travel for 14 days," with the exception of critical infrastructure industry workers.
  4. State updates: Alaska is latest state to issue a stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month and has moved its presidential primary to June 23. Some Midwestern swing voters who backed Trump's handling of the virus less than two weeks ago are balking at his call for the U.S. to be "opened up" by Easter.
  5. World updates: In Spain, over 1,400 people were confirmed dead between Thursday to Saturday.
  6. 🚀 Space updates: OneWeb filed for bankruptcy amid the novel coronavirus pandemic.
  7. Hollywood: Tom Hanks and Rita Wilson have returned to U.S. after being treated for coronavirus.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Coronavirus updates: Global death toll tops 30,000

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

The novel coronavirus has now killed more than 30,000 people around the world — with Italy reporting over 10,000 deaths, per Johns Hopkins data.

The big picture: The number of deaths from COVID-19 in the U.S. surpassed 2,000 on Saturday. The United States leads the world in confirmed coronavirus infections — more than 124,000 by early Sunday. The number of those recovered from the virus in the U.S. passed the 1,000-mark on Saturday evening.

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Photo: Olivier Douliery/AFP via Getty Images

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The big pig picture: President Trump has called the antiviral drug "promising," but the results of six clinical trials on this investigational medicine are still being conducted, so its effectiveness the treatment of the novel coronavirus has yet to be proved. The World Health Organization is involved in the tests.

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