New Delhi, Apr 13 (IANS): Japanese investment giant SoftBank is selling one of its venture capital arms, SoftBank Ventures Asia (SBVA), to Singaporean investment firm The Edgeof, as VC funding remains scarce amid the global macroeconomic conditions.
The acquisition comes after SoftBank and its Vision Fund registered huge financial losses amid the overall slump in the world of technology.
The Edgeof, a newly-established entity, will be led by Founder Taizo Son (SoftBank CEO Masayoshi Son's younger brother), and Co-founder and Chairman Atsushi Taira from the founding team of Mistletoe.
The Edgeof will leverage Mistletoe's know-how and establish a pan-Asian ecosystem for 'aStartups' by discovering, investing and supporting the growth of game-changing startups, the companies said in a statement.
The company defines "aStartups" as startups that have a mission to address fundamental problems in the world with advanced technology.
SoftBank Group will collaborate closely with The Edgeof, offering valuable expertise, industry insights, and an extensive network to drive innovation and promote growth.
The acquisition is contingent upon regulatory approval and is expected to be completed this year.
"Through this acquisition, we aspire to build an ecosystem that enables visionary entrepreneurs and their startups to effect significant, positive societal change," said Taira.
Following the acquisition, a fresh brand identity will be unveiled to signify the firm's commitment to cultivating groundbreaking technologies across the region.
Son, Founder, The Edgeof, said, "We are confident that our collective strengths and resources will ignite a new era of revolutionary technologies and solutions, establishing us as a prominent influence in developing and expanding startups worldwide."
Founded in 2000, SoftBank Ventures Asia is an early-stage venture capital firm based in Seoul and currently operates nearly $2 billion funds under management.
Since its inception, SoftBank Ventures Asia has focused on ICT investments, including AI, IoT, and smart robotics, with global investment professionals in Seoul, Beijing, Singapore, and San Francisco.
In February this year, SoftBank had posted a loss of nearly $6 billion in the quarter that ended in December.