SoftBank, the technology conglomerate that converted the venture capital industry and reached gesticulates in the technology world with its $100 billion Vision Fund, may not be able to repeat the performance or sustain its progressive approaching to tech investing, The Wall Street Journal reports.
According to the Journal, SoftBank may only be able to raise half of the $108 billion target it had named for its sequel to the Vision Fund — with the majority of that money coming from the Japanese company itself.
Big sponsors like the Saudi Arabian sovereign wealth fund( which cures support the financial stability of a regime responsible for assassinating writers ), and Abu Dhabi’s Mubadala Investment Co. both balked at SoftBank’s attempts to set up Vision Fund II, telling SoftBank that it would have to use capital from the profits made off of previous assets to finance the second largest firm.
Those profits reportedly amount to roughly $10 billion.
While the Vision Fund launched with much fanfare and no small amount of wary grumbling from investors, psychoanalysts and media astonished at the size of capital SoftBank’s benefactor and perplexing chief executive Masayoshi Son was able to raise, the results have not managed to keep pace with the hype.
Part of the problem has been the disastrous investment SoftBank obligated in the co-working company WeWork. SoftBank wrote down its $4.4 billion investment in the company by roughly $3.5 billion.
WeWork’s woes may really be the tip of the iceberg for SoftBank, which is obviously diminished its asset commitments to other portfolio corporations. Those fellowships have recently reduced staff to reduce spending ship gurgles through the broader tech industry and hinting at a potentially broader slowdown.
The Japanese conglomerate’s investment arm is also shedding staff. Earlier this week, the company lost one of its top directors, Michael Ronen, which have already been acted at Goldman Sachs and was instrumental in SoftBank’s investments in companionships like ParkJockey, Nuro and GM Cruise.
Ronen isn’t the only big-hearted departure. The company’s chief parties patrolman, Michelle Horn and another U.S.-based managing director, David Thevenon, have been previously left the company in the past five months.
Read more: feedproxy.google.com