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Global tech investor SoftBank Group Corp. is considering the launch of a new giant startup fund. The Tokyo-based tech conglomerate, by far the world’s largest startup investor in recent years, would likely use its own cash for what would be the third SoftBank Vision Fund if it moves ahead with the plan.
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SoftBank's first two Vision Funds have been hammered by a global tech rout and the underperformance of major investments such as office-sharing firm WeWork Inc (WE.N) and ride-hailing giant Didi Global Inc. Led by chief executive Masayoshi Son, it posted a record $23bn loss in the three months ending in June.
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The fund's size has not been finalised and will likely launch early next year if the Japanese tech conglomerate decides to proceed. Adding that SoftBank is also considering boosting the size of its second Vision Fund.
Why it matters
After ill-timed bets and massive losses weighing down two earlier attempts to dominate startup investing The Tokyo-based tech conglomerate is keen to make smarter decisions this time round. This is especially after the successor Vision Fund 2, funded by SoftBank and intended to be more cautious, is now worth 19% less than the $49bn it invested. Son told investors in August he was “quite embarrassed and remorseful” after having gotten caught up in the frenzy.
