SoftBank’s Vision Fund 2 invests $100m in compliance firm Behavox

Pedestrians walk past a SoftBank Group Corp. store in Tokyo, Japan. Photographer: Tomohiro Ohsumi

SoftBank Group Corp.’s Vision Fund 2 is investing $100 million in compliance and employee-monitoring software company Behavox, according to people familiar with the matter.

The investment, which is in the form of preferred shares, values Behavox at about $500 million, the people said, asking not to be identified because the information is private. The investment group will also be represented on the company’s board, the people added.

The deal is among the first for the second incarnation of SoftBank’s $100 billion Vision Fund. It comes at a time when the Japanese company faces growing scrutiny from investors including activist Elliott Management Corp. amid high-profile setbacks such as WeWork and Uber Technologies Inc.

Behavox uses machine learning and advanced analytics software to help alert companies to potential wrongdoing among employees. The company’s customers include SoftBank Investment Advisers, as well as banks, hedge funds, sovereign wealth funds and private equity firms.

“This investment will allow Behavox to further focus on and invest in the needs of our customers,” the firm’s founder and Chief Executive Officer Erkin Adylov said.

SoftBank Investment Advisers Managing Partner Munish Varma said Behavox is at the forefront of the artificial intelligence revolution that will make internal communications data useful to a broad range of users, from compliance to analysis of insider threats and from archiving and data governance to CRM automation.

Adylov and key employees will remain the largest shareholders in the Behavox.

SoftBank quietly completed an initial money-raising push for its second technology fund at a fraction of its targeted $108 billion, people familiar with the matter said in November. The Japanese company raised roughly $2 billion for the second Vision Fund and was still canvassing for additional money, the people said at the time.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.