The CEO and Founder of SoftBank, Masayoshi Son. (Image via Ad Age)

SoftBank struggles to raise fund after WeWork

Alfonsus Adi Putra
Market & Investment
New Investment
Oct 04, 2019
3127
After the WeWork catastrophe, SoftBank Vision Fund 2.0 is uncertain. The CEO and founder of SoftBank, Masayoshi Son, are trying to gain more investments for gigantic start-up investment. However, the road seems bumpy for Son after the WeWork debacle and falling valuations of its start-up companies.

The SoftBank Vision Fund 2.0 has only raised US$38 billion from its own pocket, and it is US$70 billion far from the initial target for the 2.0 fund at US$108 billion. Even this amount is still questionable as the major setbacks SoftBank is suffering and its balance sheet says otherwise. The balance sheet recorded that SoftBank only had US$27.41 billion worth of cash and cash equivalent.

How about the major investors? They are still in doubt. Son gave up big names such as Apple, Microsoft, and Standard Chartered, and some Japanese banks would invest their money into SoftBank Vision Fund 2.0. However, the first three declined to give any comment regarding the current situation. Some Japanese banks even refused to invest anymore.

When being asked about the progress of the Vision Fund 2.0, SoftBank and Vision Fund Group did not want to give any comment. However, the sources familiar to the condition stated that Son did not want to give up and wanted to proceed no matter how much will be raised in the end.

For Son’s portfolio, SoftBank had invested in 80+ start-up companies. Its big hit was when SoftBank Vision Fund invested in Alibaba in 2000. Now, SoftBank’s shares in Alibaba is worth US$100 billion.

Source: https://reut.rs/2OkVrB6

Business , Start-up , Asia , Japan , SoftBank