![]() ![]() He has also faced a string of departures of top staff. Son and SoftBank have tried to chart a new path forward after the market turned against unprofitable tech investments. Still, he has said he is committed to the startup and tech sector long-term, and eventually plans to increase spending again. Son told investors in August he was “quite embarrassed and remorseful" after having gotten caught up in the frenzy, and he has substantially cut back spending on startups. The successor Vision Fund 2, funded by SoftBank and intended to be more cautious, is now worth 19% less than the $49 billion it invested, after accelerating its spending just as valuations peaked on companies including fintech Klarna Holdings AB. and Didi Global Inc., leading to meager gains over five years. The $100 billion initial Vision Fund, which raised $60 billion from Saudi and Emirati wealth funds, was beset by giant soured bets on companies including WeWork Inc. Son formed in 2017 in a bid to dominate the venture sector. Much of that red ink is a product of its first two Vision Funds, the startup investment unit that Mr. SoftBank, led by Chief Executive Officer Masayoshi Son, has been hit particularly hard by the rout in tech valuations that began last fall, posting a record $23 billion loss in the three months ending in June. ![]()
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