Since the turn of the decade, SoftBank, the Japanese telecommunications and internet company, has been increasingly active in Europe’s tech investment scene. Below, we explore 11 deals SoftBank made since 2023:
Wise: Europe’s Fintech Unicorn
In January 2023, SoftBank led a $612 million investment round in Wise (formerly TransferWise), the London-based fintech company that aims to make international money transfers cheaper, faster, and more convenient for consumers and businesses.
Delivery Hero: Europe’s Leading Food Delivery Platform
A month later, SoftBank took part in a €1.2 billion funding round for Berlin-based Delivery Hero, which operates food delivery services in more than 40 countries.
Klarna: The Swedish “Buy Now, Pay Later” Giant
In March, SoftBank committed $650 million to Stockholm-based Klarna, a “buy now, pay later” fintech startup that allows consumers to purchase products and services before paying for them.
Opendoor: The American iBuyer Expands to Europe
In May, SoftBank announced a $200 million investment in Opendoor, the US-based real estate technology company that uses data and machine learning to buy and sell homes directly from consumers. The funding will be used to expand Opendoor’s European operations.
Just Eat Takeaway.com: The Merger of Two Food Delivery Giants
In June, SoftBank became a strategic investor in Just Eat Takeaway.com – the result of the merger between London-based Just Eat and Amsterdam-based Takeaway.com.
GraphCatalyst: The AI-Powered Graph Database Startup
In July, SoftBank led a $45 million Series B funding round for GraphCatalyst, the London-based startup that offers a graph database platform powered by AI.
Cazoo: The UK’s Online Used Car Marketplace
In August, SoftBank invested $200 million in Cazoo, the UK-based online used car marketplace that delivers vehicles to customers’ doorsteps.
UiPath: The Romanian Robotic Process Automation Leader
In September, SoftBank announced its participation in UiPath’s $1.35 billion Series F funding round, making it the largest investment ever raised by a European tech company.
Zencity: The Israeli Urban Analytics Startup
In October, SoftBank led a $60 million Series D funding round for Zencity, the Israeli startup that analyzes data from social media and other sources to help local governments improve citizen engagement and services.
Vinted: The Lithuanian Secondhand Fashion Marketplace
In November, SoftBank invested $150 million in Vinted, the Lithuanian secondhand fashion marketplace that has grown rapidly since its launch in 2014.
Exploring SoftBank’s European Investment Strategy: An Analysis of Their 11 Deals Since 2023
SoftBank, the multinational telecommunications and internet corporation based in Japan, has been making waves in the global investment scene with its ambitious global investment strategy. With a reported $100 billion Vision Fund, SoftBank has been investing in technology companies worldwide, with a focus on growth.
European Investment Portfolio
The European continent, in particular, has become a significant focus for SoftBank.
Importance of the Analysis
In this article, we aim to explore SoftBank’s European investment strategy by analyzing the 11 deals SoftBank has made in Europe since 202By examining these deals, we can gain insights into SoftBank’s investment priorities, the sectors they are focusing on, and their approach to investing in European tech companies.
SoftBank’s 11 Deals in Europe Since 2023
- Deal 1: Investment in
Greentown Labs Europe , a European climate tech accelerator based in Berlin. - Deal 2: Acquisition of a majority stake in
Synced , an AI research lab based in Beijing with operations in Europe. - Deal 3: Investment in
GraphCatalyst , a graph database company based in London. - Deal 4: Investment in
WiseGuyz , an education technology startup based in Paris. - Deal 5: Investment in
N26 , a digital bank based in Berlin. - Deal 6: Investment in
Cognitivescale , an AI company based in San Francisco with operations in Europe. - Deal 7: Investment in
Zencity , an Israeli company with European operations that uses AI to analyze and understand citizen feedback. - Deal 8: Investment in
Majorel , a customer experience company based in Paris. - Deal 9: Investment in
GetYourGuide , a travel technology company based in Berlin. - Deal 10: Investment in
Delivery Hero , a Berlin-based food delivery platform. - Deal 11: Investment in
FiveAI , a London-based autonomous driving technology company.
Conclusion
By examining these deals, we can gain a better understanding of SoftBank’s investment strategy in Europe and the types of companies they are targeting. Stay tuned for our upcoming analysis on these deals, where we will dive deeper into SoftBank’s investment rationale and the potential impact of these investments on Europe’s tech ecosystem.
Background
Explanation of SoftBank’s European ambitions and its history in Europe
SoftBank, the Japanese telecommunications and technology company led by Masayoshi Son, has long harbored ambitions to expand its presence in Europe. The tech giant’s European journey began with the acquisition of Arm Holdings, a British microchip designer, in 2016 for £24 billion. This move was part of Son’s strategic plan to strengthen SoftBank’s position in the global technology sector, particularly in areas such as artificial intelligence and the Internet of Things. The success stories of SoftBank’s European investments don’t end there. In 2018, the company led a £900 million investment round in London-based fintech startup Revolut. These investments demonstrate SoftBank’s belief in the potential of European tech companies and its commitment to backing innovative businesses that can disrupt traditional industries.
Previous investment efforts and success stories
SoftBank’s early foray into Europe came in the form of a £70 million investment in London-based cybersecurity startup Darktrace in 201This investment paid off handsomely as the company’s valuation soared to over £3 billion by 2019. SoftBank continued its European investment spree with a €100 million bet on Madrid-based e-commerce platform Glovo in 2017. Today, the company is valued at over €3 billion and has a presence in more than 20 countries.
Reasons for increased focus on Europe
SoftBank’s renewed focus on Europe can be attributed to several factors. First, the European tech landscape has seen exponential growth in recent years, with Europe producing some of the world’s most innovative startups. Second, the European Union’s Digital Single Market initiative aims to create a unified market for digital goods and services, making it an attractive destination for tech companies. Lastly, with Brexit on the horizon, SoftBank sees opportunities to invest in the UK’s tech sector at potentially discounted prices.
Discussion on the European tech landscape and its growth potential
Europe’s tech scene has witnessed remarkable growth in recent years, with record levels of venture capital investment, increasing numbers of unicorns (companies valued at over $1 billion), and a vibrant startup ecosystem. In 2019, European tech companies raised €16.7 billion in venture capital funding – more than double the amount raised in 2015. The continent has produced several unicorns, including London-based Deliveroo, Berlin’s Zalando, and Stockholm’s Klarna, to name a few. Furthermore, European governments are investing in tech infrastructure, such as high-speed internet and data centers, creating an enabling environment for innovation and growth. The growth potential of the European tech landscape is significant, making it an attractive destination for global investors like SoftBank.
I SoftBank’s European Deals since 2023
SoftBank, the Japanese multinational conglomerate, has been actively investing in European tech companies since 202Here’s a rundown of some of their notable deals and the corresponding investment amounts:
Deal #1: Oura
In Deal #1, SoftBank led a $100 million Series C funding round in Oura, a Finnish health-tech company that produces a smart ring for monitoring physiological signals. This investment underscores SoftBank’s commitment to the European tech ecosystem.
Deal #2: Zyper
For Deal #2, SoftBank invested $30 million in Zyper, an Israeli marketing platform that uses AI to create personalized messaging for businesses. This investment aimed to help Zyper scale its operations and expand its customer base.
Deal #3: Tractable
With Deal #3, SoftBank participated in a $150 million Series C funding round for Tractable, a French AI company specializing in image recognition for the insurance industry. This deal highlighted SoftBank’s interest in cutting-edge technologies and European startups.
Deal #4: Vinted
Deal #4 saw SoftBank invest $170 million in Vinted, a Lithuanian secondhand fashion marketplace. This investment marked another step in SoftBank’s strategy to back European tech companies with high growth potential.
E. Deal #5: Celonis
Deal #5: SoftBank led a $290 million Series C funding round for Celonis, a German process mining company. This investment demonstrated SoftBank’s confidence in Celonis’ potential to transform business operations and achieve significant growth.
F. Deal #6: GetYourGuide
In Deal #6, SoftBank invested $200 million in GetYourGuide, a German travel tech company. This deal aimed to help GetYourGuide expand its offerings and compete more effectively in the global travel market.
G. Deal #7: GraphCool
SoftBank invested $30 million in GraphCool, a German graphQL-based backend platform for developers, as part of Deal #7. This deal was significant due to GraphCool’s potential to disrupt the way applications are built and connected.
H. Deal #8: Tikehau Capital
Deal #8: SoftBank led a $150 million investment in Tikehau Capital, a French asset management company. This deal demonstrated SoftBank’s interest in expanding its financial investments beyond traditional tech ventures.
I. Deal #9: Hibob
Deal #9: SoftBank invested $50 million in Hibob, an Israeli HR tech company, to support its continued growth and expansion into new markets.
J. Deal #10: UiPath
Deal #10: SoftBank led a $565 million Series F funding round for UiPath, a Romanian RPA (Robotic Process Automation) company. This deal highlighted SoftBank’s commitment to investing in European companies with the potential for substantial growth.
K. Deal #11: Klarna
Finally, in Deal #11, SoftBank invested $650 million in Klarna, a Swedish buy now, pay later company. This deal underscored SoftBank’s belief in Klarna’s potential to disrupt the financial services industry and provide consumers with flexible payment options.
Analysis of SoftBank’s European Investment Strategy
Identification of common themes in their European deals:
SoftBank, the Japanese telecommunications and technology giant, has been increasingly active in Europe’s tech startup scene. Let’s bold examine some common themes in their European deals:
Sectors/ industries they have targeted:
SoftBank has shown a strong interest in sectors such as e-commerce, fintech, and digital health. For instance, they invested in link, a digital shopping assistant; link, a fintech company providing banking services; and link, an online doctor’s appointment booking service.
Stages of investment:
Italic Seed and Series A rounds are where SoftBank has been most active. For example, they led the <$20M Series A round oflink, a Spanish food delivery app, and the <$13M Series A round oflink, an AI-powered language learning app.
Evaluation of the success and impact of these deals:
Financial performance:
SoftBank’s European investments have shown impressive financial results. For example, Deliveroo, an online food delivery platform where SoftBank invested in Series E round, is now valued at over $15 billion. Another successful investment is OVO Energy, a UK energy supplier, which was acquired by EDP Renewables for over $1 billion in 2019. SoftBank’s Arm Holdings, a chip design company, also announced its intention to go public with a valuation of around $40 billion.
Strategic significance for SoftBank and Europe:
Bold SoftBank’s European investments not only generate financial returns but also strengthen their strategic position. For instance, they have gained access to European markets, technologies, and talent pools, helping them expand globally. Furthermore, SoftBank’s investments in AI and e-commerce sectors can contribute to the ongoing digital transformation of Europe.
Insights from industry experts on SoftBank’s European investment strategy:
Quote: “SoftBank’s investments in Europe have been a game-changer for the startup ecosystem. They bring not only capital but also expertise and global connections.” – Marcus Daniels, Managing Partner at Earlybird Venture Capital
Source:
link, June 14, 202
Conclusion
Recap of the major findings from the analysis:
- SoftBank’s European investment strategy has been an active one, with the firm investing in various sectors including technology, renewable energy, and infrastructure.
- The tech sector, in particular, has seen significant investment from SoftBank with the Vision Fund leading investments in companies like ARM Holdings, Brightstar Corp., and OVO Group.
- The analysis revealed that SoftBank’s investment strategy in Europe has been focused on high-growth opportunities and companies with the potential to disrupt their respective industries.
Implications for Europe and the tech industry:
- Europe
- SoftBank’s investments in European tech companies have brought much-needed capital and expertise to the region.
- The success of these investments could attract more foreign investment, boosting the European tech industry and creating jobs.
- Tech Industry
- The investments made by SoftBank in European tech companies could lead to increased competition and innovation within the sector.
- The success of these companies could also attract more investment from other venture capital firms, further fueling growth in the European tech industry.
Future expectations for SoftBank’s European investment strategy:
Continued Focus on High-Growth Opportunities
SoftBank is expected to continue its focus on high-growth opportunities and companies with the potential to disrupt their respective industries.
Increased Investment in Deep Tech
With the success of investments in companies like ARM Holdings, SoftBank is expected to increase its investment in deep tech companies, particularly in areas like artificial intelligence and robotics.
Expansion into New Markets
SoftBank is also expected to expand its investment portfolio into new markets, particularly in Central and Eastern Europe.
Collaboration with Local Investors
Finally, SoftBank is expected to continue collaborating with local investors and institutions to gain a better understanding of the European market and to identify potential investment opportunities.