SoftBank Launches $100 Million Investment Fund for 'People of Color' Businesses

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Japanese SoftBank announced that it will create a fund that invests in companies founded or operated by people of color. This fund, organized in response to racial discrimination protests in the United States, reportedly raised $100 million (approximately 121.6 billion KRW) within 24 hours.

According to CNBC on the 3rd (local time), SoftBank stated that it will launch a $100 million fund to invest in companies led by people of color to promote diversity, and the fund will be headed by Marcelo Claure, Group Chief Operating Officer (COO). The fund was initiated following the death of George Floyd, a Black man who died due to excessive force by white police officers in the U.S.

The fund is expected to be called the "Opportunity Growth Fund" and will focus on investing in companies led by African American and Latino individuals in the United States. SoftBank explained that this fund is the largest among similar types of funds. In a letter to employees, Claure stated, "This fund will invest in entrepreneurs from groups facing structural disadvantages in establishing and expanding businesses."

SoftBank said in a statement that it will not charge management fees for the fund, and half of the profits will be reinvested into future growth opportunity funds and donated to organizations that create opportunities for companies of color.

This content was produced with the assistance of AI translation services.