SFBQF - SoftBank to sell early-stage venture capital arm to Taizo Son's The Edgeof

2023-04-12 07:39:50 ET

SoftBank ( OTCPK:SFTBY ) will sell its early-stage venture capital arm SoftBank Ventures Asia to The Edgeof, a newly established entity led by Singapore-based VC firm Mistletoe founder Taizo Son. Terms were not disclosed.

Taizo Son is the younger brother of SoftBank ( OTCPK:SFTBY ) billionaire founder Masayoshi Son.

The Edgeof will leverage Mistletoe's know-how and establish a pan-Asian ecosystem for alpha startups. It will also work closely with SoftBank ( OTCPK:SFTBY ), which will offer industry insights and an extensive network to drive innovation.

"To support the full lifecycle of these startups, multiple funds will be established, ranging from early to growth stages, enabling co-investment alongside similar-minded investors," The Edgeof said in a statement.

The acquisition, which is subject to regulatory approval, is expected to be completed this year.

SoftBank ( OTCPK:SFTBY ) is selling the venture capital arm after suffering billions of dollars in losses from failed startup bets, Bloomberg reported .

SoftBank Ventures Asia, which has $2.5B funds under management, earlier picked up stakes in Korean car-hailing firm Socar, selfie app Snow China and Indonesian e-commerce platform Super, among others. The VC firm primarily focused on growth-stage startups in the information and communications technology industry.

In other news, SoftBank ( OTCPK:SFTBY ) is expected to ink a Nasdaq listing deal for its chip design unit Arm this week .

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