Japanese Net investor Softbank
Tuesday announced plans to pour $100 million into a new venture capital fund
for Latin American Internet ventures.
Softbank Latin America Ventures (SBLV) may combine forces with yet unnamed
strategic partners, but Softbank will be the sole support of the first fund,
which is expected to open later this month.
The VC fund aims to help Net companies enter local markets, fund local
entrepreneurs, and foster companies with a focus on the region.
Softbank cited studies from International Data Corp. which recently
projected that the Latin American Internet population will surge from 8.5
million to 24.3 million by 2003. E-commerce revenues are estimated to hit
$460 million for last year, with a expected 24-fold increase to $8 billion
in the next three years.
“SOFTBANK is committed to helping build the Internet globally, and Latin
America represents the next major area of opportunity,” said Masayoshi Son,
Softbank’s president and chief executive officer. “By dedicating funds and
strategic resources to the region we expect to contribute substantially to
the development of the Latin American Internet.”
Jan Boyer, who formerly directed BankBoston’s Latin America private equity
operations, will act as managing general partner for SBLV. Eric Hippeau,
Ziff-Davis’ chairman and CEO, Gary Rieschel, managing director of Softbank
Venture Capital, and Softbank’s vice chairman Ronald D. Fisher join Son in
directing the venture’s investments. The company will set up offices in Sao
Paulo, Mexico City, and Miami.
SBLV is the newest addition to a long line of local initiatives linked to a
global investment strategy. Softbank, which was instrumental in bringing
sector leaders such as Yahoo! (YHOO)
and E*Trade (EGRP)
into prominence, also created holdings through joint ventures with Naray
Telecom in Korea, and with Vivendi for the @viso fund in continental Europe.
eVentures, a joint venture with News Corp., is targeting the U.K.,
Australia, New Zealand and India.
