SoftBank eyes another Vision Fund

Japan-based tech investor SoftBank is reportedly considering another multibillion-dollar startup fund. SoftBank reported a $23B loss in Q2 2022.

Why should we care?
With so much investor money already wasted on bad bets—from WeWork to Didi Global—SoftBank may have to use its own cash for the new fund. This could signal SoftBank’s gradual decline. SoftBank’s eccentric founder, self-made billionaire Masayoshi Son, personally owes $2.1 billion to SoftBank under the terms of the Vision Fund 2 funding structure and due to the fund’s poor performance; what’s more, SoftBank is about to lay off 20% of its staff, and employee salaries have already been cut. If this third fund follows in preceding Vision Funds’ footsteps, then Son may be on the hook for more money, and could blow through SoftBank’s cash reserves. According to Bloomberg, Son “may see the current moment—with tumbling stock prices and fearful investors—as just the right moment to prepare for big bets.” Going the gutsier route has sometimes worked for Son in the past, but it places SoftBank’s future, in addition to its reputation, on the line.