SoftBank Invests $100 Million in Miami Startups

Miami, a rapidly developing center for startups, has gained a significant new investor: SoftBank. The Japanese multinational corporation revealed today its intention to allocate $100 million, sourced from its various funds, to startups located in Miami. It is worth noting that SoftBank’s $5 billion fund focused on Latin America is also based in Miami.

This investment strategy is being directed by SoftBank CEO Marcelo Claure. The fund’s resources will be dedicated to supporting companies currently operating in Miami or those planning to establish a presence there.

Receiving funding from SoftBank is often considered a key milestone for companies in Silicon Valley, and the firm’s participation in Miami’s ecosystem is likely to encourage others to recognize the city’s growing importance. The city’s favorable tax environment is drawing a considerable number of investors and entrepreneurs from across the nation who are eager to participate in its expanding startup community. Individuals who have recently relocated include Keith Rabois from Founders Fund, David Blumberg of Blumberg Capital, and Chris Dixon of Andreessen Horowitz.

Miami Mayor Francis Suarez has been actively promoting the city as a tech hub, particularly through his efforts on Twitter, encouraging technology professionals to move to Miami.

Ruben Harris, the founder of Career Karma, has been collaborating with Suarez since 2018 to assist individuals in entering the technology sector.

“With SoftBank’s commitment, we anticipate further funds will follow suit, representing a substantial benefit for diversity – not only in terms of race, but also socioeconomic background and gender,” Harris stated, adding that he is considering a move to the city himself. Career Karma is presently partnering with venture capital firms to provide refurbished laptops for its Reskill America program, aimed at developing a skilled workforce in Miami.

Monica Black, the driving force behind Function, a Miami-based nonprofit investor syndicate, expresses hope that SoftBank’s arrival “will both increase the capital available to local startups, enabling them to progress beyond the Series A stage, and also attract additional institutional venture capital firms as co-investors.” She noted that historically, it has been challenging for local startups to secure funding from investment groups in Silicon Valley or New York, with Papa being an exception, having raised $18 million in September through investments from Sound Ventures and Canaan to facilitate connections between older adults and virtual companions.

Nico Berardi, founder of the Miami-based fund ANIMO Ventures, linked SoftBank’s new initiative to the recent announcement by San Francisco’s Founders Fund regarding the opening of a Miami office.

“Both actions are significant and symbolic,” Berardi explained. “[They] demonstrate a commitment to this emerging scene.” Of his 16 portfolio companies, Berardi indicated that only one is currently located in Miami. He is optimistic that the influx of investors will attract more talent to the city.

“I am hopeful this will encourage dozens or even hundreds of founders to establish their next ventures in Miami,” he said.

Editor’s note: A previous iteration of this article incorrectly stated that David Sacks of Craft Ventures had relocated to Miami. This has been corrected.