Establishment of Growth Acceleration Fund
1. Objective of the Fund
The Fund was established to invest in early stage startups globally with a particular focus on Asia. SBG, SoftBank Korea Corp. (“SBK”), a wholly owned subsidiary of SBG, and SBVA participate in the Fund. In addition, multiple institutional investors, including Korea National Pension Service, also participate as limited partners of the Fund. It is expected that the final closing will be completed in the future six months.
2. Outline of the Fund
| (1) Trade name | Growth Acceleration Fund | |
|---|---|---|
| (2) Address | 19F, B Wing, Kyobo Tower, 465, Gangnamdae-ro, Seocho-gu, Seoul, 06611, Korea | |
| (3) Basis of establishment | Korea Venture Fund, a partnership structure under Korea's Article 4-3 of the Act on Special Measures for the Promotion of Venture Businesses | |
| (4) Purpose of establishment | To carry out investment activities in startups globally with a particular focus on Asia | |
| (5) Date of Establishment | July 19, 2019 | |
| (6) Committed capital (as of July 19, 2019) | Total | KRW 317,380 million (USD 269 million*) |
| Breakdown | SBG: KRW 166,430 million (USD 141 million*) SBK: KRW 6,000 million (USD 5 million*) SBVA: KRW 4,500 million (USD 4 million*) Other: KRW 140,450 million (USD 119 million*) | |
| (7) General partner | Name | SoftBank Ventures Asia Corp. |
| Address | 19F, B Wing, Kyobo Tower, 465, Gangnamdae-ro, Seocho-gu, Seoul, 06611, Korea | |
| Representative | Joonpyo Lee | |
| (8) Investment period | 4 years from first closing (in principle) | |
| (9) Fund life | 8 years from first closing (in principle), subject to extension up to two additional years. | |
| (10) Relations with SBG | Capital | SBG, SBK, and SBVA will contribute 52.44%, 1.89%, and 1.42%, respectively, of the total committed capital (as of July 19, 2019). |
| Personnel | SBG has appointed two board of directors for SBK, the parent company of SBVA. | |
| Business | Not applicable | |
3. Future Outlook
SBVA has the authority to make investment decisions for the Fund as the General Partner. Moreover, SBG, SBK, and SBVA will collectively contribute a considerable proportion of the total committed capital. As a result, for accounting purposes, SBG shall be deemed to control the Fund, and consequently the Fund will be a consolidated subsidiary of SBG. Therefore, the results of operations, assets and liabilities of the Fund will be included in SBG's consolidated financial statements. In principle, the investments held by the Fund will be measured at fair value at each quarter-end, and the changes in fair value will be recognized in the consolidated statement of income. SBG will disclose the impact of the Fund in its financial statements as necessary.
Calculated at exchange rate of USD = KRW 1,178.6 (as of July 18, 2019).
This document has been prepared and issued by SBG for the sole purpose of announcing to the public certain matters relating to the activities of SBG, and not for the purpose of soliciting any investment from any person in any jurisdiction.
This document has not been prepared by or issued on behalf of the Fund or the General Partner, does not constitute any offer or solicitation to purchase or subscribe for the interests in the Fund and does not and is not intended to contain the information that may be desirable, necessary or required to properly evaluate a potential investment in the Fund.
Without limiting the foregoing, this document does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. Interests in the Fund will not be offered or sold in the United States, or to, or for the account or benefit of, any U.S. person (as such term is defined in Regulation S under the U.S. Securities Act of 1933).
The information in this document is true and accurate at the time of publication, and subject to change. This document may contain certain forward-looking statements that are based on assumptions and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Assumptions should not be construed to be indicative of the actual events which will occur.
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