SoftBank Struggles to Raise Funds After WeWork Debacle
SoftBank, the Japanese conglomerate headquartered in Tokyo, may struggle to sustain its tech investment model, according to reports.
The investment company is working to raise $108 billion for its so-called sequel to the Vision Fund — but this target is looking increasingly unlikely. Rather than pour in fresh capital, major backers instead expect SoftBank to use capital from the profits made off of previous investments to finance the second fund.
Those profits reportedly amount to roughly $10 billion — leaving it well adrift of its $108 billion target.
The reason for the resistance is at least partly due to the disastrous investment SoftBank made in WeWork. However, this is said to be just the tip of the iceberg for SoftBank, which has significantly curtailed its capital commitments to other portfolio companies.
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