SoftBank Transfers Open Opportunity Fund Ownership to Black and Latino Executives, Claure and Judge, Paving the Way for Increased Diversity in Venture Capital
SoftBank has announced the sale of its Open Opportunity Fund (OOF) to its chairman and managing partner, Paul Judge, and the newly appointed vice chairman and general partner, Marcelo Claure. This strategic move grants Judge and Claure complete ownership of the $100 million Open Opportunity Fund 1, the $150 million Fund 2, and the entire portfolio. Fund 2, introduced earlier this year, is also set to raise its target to $200 million.
Claure emphasized the significance of this acquisition, citing it as a “significant milestone” towards fostering diverse representation throughout the venture capital ecosystem. The rebranded Open Opportunity Fund (OOF) reflects SoftBank’s commitment to inclusivity, with Judge serving as chairman and co-owner.
Claure, who initially launched OOF and previously served as SoftBank’s COO until 2022, expressed enthusiasm about returning to work with the fund. Judge praised Claure’s continued active involvement in the venture ecosystem, highlighting his valuable network that enriches deal flow, particularly within the vibrant Latino entrepreneurial community.
Fund 1, which deployed $100 million in 75 Black and Latino companies, showcased notable success, with seven exits and 46 follow-on rounds. SoftBank will maintain a Limited Partner (LP) role in Fund 2, aligning with Claure’s vision of seeking investors dedicated to promoting diversity in the tech ecosystem.
Fund 2 aims to invest in 50 pre-seed to growth-stage companies across fintech, health tech, edtech, sales and marketing, and enterprise IT. Judge indicated that Fund 1 companies may receive funding from Fund 2 on a “case-by-case basis.” The overarching goal is to tap into the untapped potential of the Black and Latino founder market, emphasizing a belief in outsized returns.
“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,” Judge stated. The success of Fund I substantiates this thesis, demonstrating the viability of supporting underrepresented entrepreneurs and fostering diversity in the tech landscape.
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