Miami Mayor Francis Suarez, SoftBank’s Marcelo Claure announce $100 million initiative for Miami startups
Hoping to ride the wave of tech fervor sweeping over Miami, SoftBank executive Marcelo Claure and Mayor Francis Suarez announced Thursday a new, $100 million venture capital initiative aimed at fueling Miami startups.
“In the venture business, you need two things: talent and capital, and on behalf of SoftBank, we got together and are launching this [initiative] to support Miami-based startups or ones moving to Miami,” Claure, the CEO of SoftBank International, said in a live broadcast on Twitter with Suarez.
Added Suarez, “We’ve had people move here...but this is the first major investment we’ve seen in the Miami ecosystem.”
Interested startups can apply at SoftBankMiami.com; companies must have a track record of growth in addition to being based or intending to move to Miami. The initiative will use existing SoftBank investing channels, including its multibillion-dollar LatAm fund and its Opportunity Fund for minority investors, to make investments.
In an interview with the Miami Herald following Thursday morning’s announcement, Claure pointed to another Miami-based, SoftBank-backed company, REEF, as an example of a technology company that is creating hundreds of new roles locally. REEF, formerly known as ParkJockey, works with restaurants and real estate property owners worldwide to create off-site kitchens that cook for restaurants. Multiple investments from SoftBank has valued the company at more than $1 billion.
“Tech companies like REEF are the largest creators of jobs bar none, whether direct or indirect, including for gig workers,” Claure said.
Claure said he hopes he can entice other companies to move to or grow in Miami and follow in REEF’s footsteps.
“When you get a lot of successful people in one specific city, you’re going to see a flywheel effect,” he said. “We’re on to something very special here. If I didn’t think so I wouldn’t be putting SoftBank money behind this.”
Claure also praised Suarez for being a cheerleader for the tech industry at a time when other municipalities are seeking to regulate it further. Suarez has made Miami the talk of much of the tech world, using Twitter to welcome relocating businesses. His interactions with Silicon Valley heavyweights like Peter Thiel have helped convince other tech executives to relocate or put down roots in the Magic City amid the pandemic. Earlier this month, Shutterstock founder Jon Oringer, who had moved to Miami Beach last fall, announced the launch of Pareto Holdings, a new tech venture designed to build up startups in Miami-Dade.
“He deserves a lot of credit,” Claure said. “Everyone likes to bash tech these days, but he’s welcoming them — they’re not used to being treated right by a lot of governments.”
SoftBank’s Miami initiative has already selected two Miami companies for its initial investments: Lumu, a cybersecurity company; and QuikNode, a cryptocurrency and blockchain software group. Terms were not disclosed; leaders at both companies, Ricardo Villadiego of Lumu and Auston Bunsen of Quiknode, declined to comment.
As of October, SoftBank had 60 Miami-based employees, or about 40% of all its U.S.-based employees. SoftBank’s Latin America team reports up through the Miami office.
SoftBank finds itself at the nexus of multiple advanced technology efforts in South Florida. In addition to REEF, SoftBank is a major stakeholder in Fortress Investment Group, itself the majority owner of the Brightline express train. Claure serves as Fortress chairman.
SoftBank also controls co-working group WeWork; Thursday, the Wall Street Journal reported WeWork was seeking to raise additional funds, possibly via a public offering. A SoftBank representative declined to comment on the report, but noted Claure, who also serves as WeWork chairman, told Bloomberg News Thursday that the co-working company had received multiple inquiries from investor groups interested in partnering with it. WeWork announced Jan. 21 it has partnered with Miami to offer perks to new companies.
Claure also serves as co-owner of Inter Miami CF, the city’s Major League Soccer team. The team has been in talks with citycq officials about opening a $1 billion stadium complex at Melreese golf course. In 2018, Miami voters gave the city the go-ahead to negotiate on Miami Freedom Park. Team officials are now seeking to up-zone the area to execute its $1 billion plan for a sprawling mall, office park, hotel and soccer stadium that would also include a public park.
Claure said Thursday’s announcement has nothing to do with the stadium effort.
“That would be the 100% wrong interpretation of what we are doing with this initiative,” he said.
Claure kicked off his career in Miami when he founded mobile phone group Brightstar, which was bought by SoftBank in 2013; Brightstar is now owned by a private equity group. Claure returned to Miami-Dade on a semi-permanent basis around the end of 2018 after leading the merger of Sprint — where he was appointed CEO in 2014 — with T-Mobile, from Kansas City. Records show he purchased a home on North Bay Road for $11 million in August 2020.
This story was originally published January 28, 2021 at 10:53 AM.
