SoftBank Files for Two More SPACs

SoftBank Enters the SPAC Arena with New Filings

The surge in SPAC (Special Purpose Acquisition Company) activity persists, with a constant stream of new filings being submitted to the SEC.

SoftBank, the Japanese telecommunications and investment firm renowned for its Vision Fund, is actively participating in this trend. Recently, the company filed registration statements for two new blank-check companies in quick succession.

SPAC Details: SVF Investment Corp 2 & 3

SVF Investment Corp 2 is seeking $200 million, while SVF Investment Corp 3 aims to raise $350 million. Both SPACs include a standard over-allotment option of approximately 15%.

Should underwriters exercise this option, the final capital raised is projected to reach $230 million and $400 million, respectively.

Forward Purchasing Agreements with Vision Fund 2

A notable feature of both SPACs is their connection to SoftBank’s Vision Fund 2 through forward purchasing agreements.

These agreements grant the Vision Fund 2 the opportunity to invest in the SPACs when they merge with target startups, effectively securing a stake in future acquisitions.

The agreements are valued at $100 million for SVF 2 and $150 million for SVF 3.

Previous SPAC Activity

As with all SPAC filings, these represent an intention to raise capital, which is typically realized in the current market.

SoftBank launched an earlier SPAC in December, which officially closed on January 7th of this year. This vehicle targeted a total of $604 million, including the underwriters’ option.

It also featured a $250 million forward purchase agreement with the second Vision Fund, mirroring the structure of the latest filings.

Investment Focus

These SPACs are focused on identifying and acquiring businesses within the technology sector.

Areas of interest include mobile communications, artificial intelligence, robotics, cloud technologies, software, computational biology, semiconductors, transportation technologies, consumer internet, and financial technology.

However, the filings also indicate a willingness to consider opportunities outside of these specific sectors, offering considerable flexibility.