Abu Dhabi pledges AED 535M into startups and VCs at Hub71

Finance

Abu Dhabi pledges AED 535M into startups and VCs at Hub71

Priya Wadhwa
Finance
Published:
Abu Dhabi pledges AED 535M into startups and VCs at Hub71
Gearing up the ecosystem

Abu Dhabi has launched multiple initiatives to attract and support startups in the country’s capital. In a recent initiative, the capital’s government has announced the launch of AED 535 million fund, set up to invest in tech startups and venture capitalists at Hub71. Through a government matching scheme, the fund will co-invest with VCs beginning April 28th, 2019.

The founding partners of this new initiative are Mubadala Investment Company, Microsoft and the SoftBank Vision Fund, who will work in close collaboration with Abu Dhabi Global Market (ADGM) to spur innovation and entrepreneurship.

Hub71, located in ADGM square, is part of Ghadan 21—an AED 50 billion investment stimulus fund launched in September 2018 by His Highness Sheikh Mohammed bin Zayed al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

Chairman of the Abu Dhabi Executive Office, said, "Through the Abu Dhabi government's economic programmes and plans, we're doubling down on our efforts to make Abu Dhabi a global beacon for technology and innovation."

In addition to the initiative, the government will offer startups a subsidiary package, which will include 100 percent subsidies on housing, office space and health insurance for up to five full-time employees for two years. For tech companies with six to twenty-five full-time, the subsidy package will include 50% subsidies for three years.

Read more about the initiative here.