SoftBank’s To Slow Its Startup Investments Following Record-High Vision Fund Loss

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After SoftBank’s Vision Fund reported a record-high loss of $27.4 billion during the first quarter of 2022, CEO Masayoshi Son is now seeking to cut its startup investments by over half. 

Just one year ago, the Japanese conglomerate reported a record-high quarterly profit.  

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However, during an earnings call this week, Son said the firm’s investments could “be half or…as small as a quarter” in order to achieve more financial balance. 

SoftBank isn’t alone in its plans to hit the brakes on investments — other investment firms such as Coatue and Tiger Global have also slowed down their investments and capital into startups for this year. 

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In SoftBank’s case, operating more cautiously will help improve its financial standings according to Son. For instance, the firm planned to invest up to $5 billion into India this year, but injected just $2.5 billion during the first quarter. 

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