Softbank Launches $150M Fund for Black, Latinx-Led Startups
Internet and telecommunications conglomerate SoftBank launched a $150 million fund focusing on Black and Latinx-led startups, dubbed the Open Opportunity Fund 2.
It marks a rebranding of its earlier SB Opportunity Fund, which launched in June 2020 and has invested over $100 million in 75 companies to date. The firm also used $600 million from its Vision Fund 2 and the Latin America Fund to separately invest in Opportunity Fund portfolio businesses.
Unlike the first fund, in which SoftBank was the sole limited partner, Open Opportunity Fund 2 is available to other investors.
Paul Judge, founding member of the Opportunity Fund’s investment committee, will serve as chairman of the fund and take an ownership stake alongside other unnamed co-owners. SoftBank will remain a limited partner to the fund.
“SoftBank proved that the Opportunity Fund model works for increasing access to capital for founders who have been traditionally overlooked, and we remain committed to the fund and its mission,” said Brett Rochkind, managing partner of SoftBank Investment Advisors.
The Open Opportunity Fund portfolio includes Atomic, Brex, Career Karma, Cityblock Health, Eight Sleep, Esusu, Greenwood, Lendtable, Mayvenn, Paystand, PlayVS, Praxis Labs, QuickNode, Squire, and Subject. The fund has had seven exits.
