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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/05\/11\/softbank-vision-fund-loses-32-billion-in-a-year-on-startups-valuation-cut\/<\/a><\/br> SoftBank Vision Fund<\/a> lost $32 billion in the financial year ending March as the Japanese investment giant, the most prolific global investor in tech startups, continues to suffer from valuation corrections across its portfolio of private and public tech companies amid a weakening global economy.<\/p>\n The loss surged about 70% from the same period a year prior, when SoftBank had reported $19 billion in losses at the Vision Fund unit. The losses come even as SoftBank has grown very cautious about deploying new capital to startups in recent quarters.<\/p>\n Among the losses, the Japanese conglomerate said its Vision Fund 1 made an unrealized loss of $1.6 billion each in SenseTime Group and GoTo and nearly $800 million in DoorDash.<\/p>\n The fair value of SoftBank\u2019s portfolio was marked down over the quarter by $2.3 billion to $138 billion.<\/p>\n \u201cFor private portfolio companies, the fair value decreased in a wide range of investments, mainly reflecting markdowns of weaker-performing companies and share price declines among market comparable companies,\u201d SoftBank Group said in earnings report Thursday.<\/p>\n SoftBank chief finance officer Yoshimitsu Goto said earlier this year that the firm had entered \u201cdefence mode\u201d<\/a> and was preparing for three different scenarios. SoftBank anticipates that the market may either start to show recovery linearly this year, or by the second half of this year, or in a worst-case scenario stumble through until early 2024.<\/p>\n The tumultuous times at SoftBank Vision Fund means a tough time for many of its portfolio startups, many of whom themselves are loss-making. SoftBank has served as a high-conviction growth investor for its portfolio startups, often leading or co-leading later, and often large, financing rounds.<\/p>\n It\u2019s logical that SoftBank is now going to be considerably more selective and judicious about investing going forward. The firm closed 25 deals in the last 12 months, and did an investment of about $400 million in the quarter ending March \u2014 but compare that to over 40 in its heyday in 2018<\/a>, with total invested reaching well into the billions, sometimes even for single startups like WeWork and Grab.<\/p>\n
\nSoftBank Vision Fund yearly loss widens to $32B on startups valuation cut<\/br>
\n2023-05-11 22:25:37<\/br><\/p>\n