SoftBank is selling its Open Opportunity Fund to Paul Judge, its chairman and managing partner, and Marcelo Claure, who will become the fund’s vice chairman and general partner.
Judge and Claure will hold the whole portfolio as well as the firm’s $100 million Open Opportunity Fund 1 and $150 million Fund 2. Fund 2, which was established earlier this year, will also raise its target to $200 million.
Claure referred to the purchase as a “significant milestone,” stating that it “demonstrates a concrete move towards more diverse representation within all layers of the venture capital ecosystem.”
Earlier this year, SoftBank renamed its Opportunity Growth Fund the Open Opportunity Fund (OOF) and nominated Judge as chairman and co-owner of the fund. Claure, who founded OOF, previously served as SoftBank’s COO until 2022 and is returning to the fund about a year after stepping down.
Claure, according to Judge, is still quite involved in the startup ecosystem and remains a member of the fund’s investment committee. “Marcelo brings a wealth of experience and a broad network that will benefit our portfolio companies.” “Marcelo’s extensive network of Latino entrepreneurs significantly enhances our deal flow within this vibrant community,” added Judge.
Fund 1 invested $100 million in 75 black and Latino-owned businesses, resulting in seven exits and 46 follow-on rounds. SoftBank will be a limited partner in Fund 2, and Claure said that the fund is searching for investors who want to push greater diversity in the digital sector and who “value the importance of supporting underrepresented entrepreneurs.”
Fund 2 will invest in 50 firms ranging from pre-seed to development stage in fintech, health tech, edtech, sales and marketing, and enterprise IT. Fund 1 firms may obtain money from Fund 2 on a “case-by-case basis,” according to the judge.
“We believe the black and Latino founder market is an untapped source of outsized returns, and this focus allows us to find alpha that other VCs have overlooked,” he added. “The strong performance of Fund I proves that this thesis works.”
