Softbank Group founder and CEO Masayoshi Son is struggling to raise money for a second massive technology investment fund in the wake of the failed public offering of WeWork and sliding valuations of other major investments by ASenjourno
- Softbank Group founder and CEO Masayoshi Son is struggling to raise money for a second massive technology investment fund in the wake of the failed public offering of office-rental company WeWork and sliding valuations of other major investments, according to two people familiar with the situation.
If the second fund comes in well short of Son’s goal or gets scrapped it will have broad implications for Silicon Valley venture capitalists, entrepreneurs and Wall Street financiers. To be sure, there are investments in the 80-plus companies Vision Fund has financed that appear to be paying off quickly. Delivery company DoorDash, for one, has rocketed in value, at least on paper, from $1.4 billion last March to $12.6 billion in May. Softbank, which owns about a third of the Vision Fund, in July reported a 62% return on its investment, including management and performance fees.
The United Arab Emirates’ Mubadala fund still intends to invest in Vision Fund 2 but is seeking more say in the investments, a source familiar with the discussions said.The worsening turmoil at WeWork will continue to be a strain on Softbank and the first fund. The price of WeWork bonds has sunk, its credit ratings have been slashed and big cutbacks are expected at the company, including the possibility of thousands of layoffs.
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