Sunday, November 29, 2020
More
    Home News Business Considering setting up new type of fund for startup investing: SoftBank CEO

    Considering setting up new type of fund for startup investing: SoftBank CEO

    SoftBank Group's CEO Masayoshi Son has said he may set up a new type of fund for investing in startups. He added that Vision Fund 2 hasn't been able to raise enough money because investors have been "worried by trouble at WeWork and Uber".

    Just In

    00:12:36

    Throwback: Anil Kapoor Shooting For A Song From Film Bulandi (2000)

    Bulandi is a Hindi action family drama film released in the year 2000. The film stars Anil Kapoor, Rekha and Raveena Tandon in lead...

    Rupal Patel Praises Rajan Shahi, Says He’s The Best Producer

    Veteran ace TV actress Rupal Patel has been ruling the hearts of audiences from past so many years and she is an iconic name...

    Bigg Boss 14: Jasmin’s Mother Gurmeet Says Jasmin Is Not Fake

    Jasmin's mother Gurmeet is very happy and glad seeing her daughter Jasmin's strong personality being seen in the house and lauding her daughter Jasmin's...

    Ilham Bashes Diandra’s MCP Comment On Brother Aly In Latest Interview

    As soon as a new season of Bigg Boss goes on-air, the ex-contestants make sure they judge and review every waking hour of the...
    00:07:49

    Grand Premiere Of Kamal Haasan’s Film Hindustani (1996)

    This throwback video features the grand premiere of film Hindustani. It is an action drama film released in 1996. It stars Kamal Haasan, Manisha...

    SoftBank Group Corp. founder Masayoshi Son said he is considering a new type of fund for startup investing, showing his determination to keep cutting deals after missteps with WeWork and several other companies.

    The Japanese billionaire unveiled his $100 billion Vision Fund three years ago and had been planning on raising a similarly sized second Vision Fund. But as he discussed earnings in Tokyo Wednesday, he conceded that raising money from limited partners for the second fund has been difficult and he may instead make startup investments solely with SoftBank’s capital for a year or two.

    “A lot of our planned investors have been worried by the trouble at WeWork and Uber and we heard their feedback,” Son said. “So before we officially launch SoftBank Vision Fund 2, maybe we start from a smaller scale and start from a shorter period in terms of investment as sort of a bridge.”

    “So I’m beginning to think about that kind of two-step approach,” he said. “We have not made any official decision yet, but that’s one of the options that we started considering. Again, we have not come to a conclusion yet.”

    Son’s somewhat opaque comments came after SoftBank reported that the Vision Fund had lost money for the second quarter in a row, reflecting the decreased value of startups it has backed. The Vision Fund lost ¥225.1 billion ($2.05 billion) for the three months ended in December, after losing ¥970.3 billion the quarter before including WeWork and Uber Technologies Inc.

    “Mr. Son said that he may consider delaying SVF2 or a smaller SVF2. Given our view that SVF2 is a big risk, this statement is welcome,” said Atul Goyal, an analyst at Jefferies Group, in a research report.

    SoftBank set up the original Vision Fund with money from outside investors, led by Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala Investment Co. But for years before that, SoftBank made deals with its own capital, including early investments in Alibaba Group Holding Ltd. and Yahoo! Corp. During the dot-com boom, Son took stakes in hundreds of internet companies.

    Indeed, before the first Vision Fund, SoftBank set up an entity called Delta Fund that was used for startup deals, including some that eventually were moved into the Vision Fund. Son could simply inject capital into that vehicle. SoftBank had weighed contributing $40 billion to $50 billion of its own capital for the second fund, people familiar with the matter have said.

    “We can make investment on our own or we can work with partners, new or existing,” Son said.

    He did explain that SoftBank continues to back startups with its own money.

    “We made several investments because we do have a very good pipeline,” Son said Wednesday. “It’s a hundreds of billions yen level.”

    He added that he is no longer targeting $108 billion for the second fund and wasn’t precise about what the expected size would be.

    “We shouldn’t be postponed too long,” he said. “First, make it a little bit smaller for 1 to 2 years, raise some bridge money, while were are building a track record. Then once we have results, I want to raise an official second fund.”

    For latest entertainment news, bollywood news, hollywood news, celebrity gossips, latest movie reviews, entertainment news and gossips in hindi - follow Lehren on Facebook, Twitter and Youtube.

    ↓   Keep Scrolling for NEXT STORY   ↓

    Top Picks

    Bigg Boss 14: Jasmin’s Mother Gurmeet Says Jasmin Is Not Fake

    Jasmin's mother Gurmeet is very happy and glad seeing her daughter Jasmin's strong personality being seen in the house and lauding her daughter Jasmin's...
    00:01:25

    BTS: Hope To Visit India In The Future If An Opportunity Is Given

    Korea’s biggest boy band, BTS which comprises of seven members, says that nonappearance of any one member feels different for the rest of the...
    00:01:12

    Find Out Why Ankita Lokhande Was Trolled For Her Latest Insta Post

    Ankita Lokhande was often seen supporting the family of late actor and ex-boyfriend Sushant Singh Rajput. However when Ankita recently shared happy post, her...

    Trailer Of Varun Dhawan and Sara Ali Khan Starrer Coolie No. 1 Becomes Meme Fest

    After a long wait due to the coronavirus pandemic, the trailer of the much-awaited movie Coolie No. 1 is out. The movie features Sara...

    National level Taekwondo player Samyak Prasnana on Indian Idol 2020

    Indian Idol is back with a fresh season, sitting on the panel of judges are acclaimed names from the music industry- Neha Kakkar Vishal Dadlani...

    Also Read

    OYO’s Ritesh Agarwal sets up Aroa Ventures to invest in startups

    Hospitality startup Oyo’s founder Ritesh Agarwal has glided a beginning phase investment support named Aroa Ventures, which will concentrate on interests in development stage...

    Covid IMPACT: SoftBank to sell $21 billion worth of shares in...

    Japanese conglomerate SoftBank has announced that it plans to offload nearly $21 billion worth of stock in T-Mobile. It will sell over 198 million shares, accounting for two-thirds of its 24.6% stake in the US-based wireless carrier.

    SoftBank Vision Fund II may raise only half of its $108...

    SoftBank Vision Fund II may raise only half of its $108 billion target, with nearly half the capital coming from itself, The Wall Street Journal reported.

    Trending

    Bollywood actesses who were launched by Salman Khan

    These are the Bollywood actresses who were launched by Salman Khan in the Hindi film industry

    Television couples who went in for live in relationships!

    Many celebs from the tinsel town have opted for a live-in relationship. To know which are those couples, read on this article
    00:02:03

    Home Remedies For Bad Breath

    Do you suffer from bad breath? It can be quite an unpleasant situation. Here's natural home remedies to treat bad breath. To know more...

    International Shows You Can Binge Watch During This Lockdown

    It's been a rough year and we have nowhere to go, which means most of us turn to our TV or laptops for some entertainment. Here we have list shows which you can binge-watch while during the self-isolation period.
    00:02:32

    Bollywood Flashback: A.R. Rahman’s Exclusive Interview After Winning National Award

    Watch the Exclusive Interview of Singing legend AR Rahman after he won the National Award for 'Best Music Direction' for his debut as a...