Most SoftBank Vision Fund investors want to join second fund

  • Business
  • Thursday, 20 Jun 2019

"The objective of the fund is to facilitate the continued acceleration of the AI revolution through investment in market-leading, tech-enabled growth companies," the Japanese tech conglomerate said in a statement, adding it was still talking to more potential investors and that the fund was expected to grow.

TOKYO: Most investors in SoftBank Group Corp’s US$100bil Vision Fund want to join the group’s forthcoming second fund, and discussions with those investors will begin soon, SoftBank founder and chief executive Masayoshi Son said.

The comment came at the Japanese group’s first AGM since it listed telecommunications firm SoftBank Corp in December, in a move widely considered as completing its transformation into a tech-focused investor.

Reflecting that shift, Son said he wanted to be the conductor in an artificial intelligence-driven technological revolution.

“The conductor doesn’t play anything but actually he plays everything,” he told investors.

With the first Vision Fund having spent much of its capital in its two years of life, Son in May said a second fund would launch “soon” even if SoftBank was initially the only investor.

Investors in the first fund include the sovereign wealth funds of Saudi Arabia and Abu Dhabi, US tech giant Apple Inc and Taiwanese electronic device assembler Foxconn, formally known as Hon Hai Precision Industry Co Ltd.

The Vision Fund has pumped money into late-stage startups worldwide such as US ride-hailing company Uber Technologies Inc and shared office space firm, The We Company.

It has become SoftBank Group’s biggest driver of profit growth, with much of its investment gains unrealised and driven by upward valuations of its portfolio companies. To extend the investment spree, the group needs more funds.

At the meeting yesterday, Son said the fund’s headcount would eventually reach 1,000 from 400, and the fund’s head, Rajeev Misra, said the number of portfolio firms would rise to 100-150 in a year or two from around 80 at present.

Internet firms now dominated rankings of the world’s largest companies but have transformed just two industries, advertising and retail, which made up only a small part of the economy, Son said.

While SoftBank has invested in those industries in less mature markets – in, for example, South Korean e-commerce firm Coupang and Indonesian peer Tokopedia – its tech bets have been focused on startups looking to disrupt other industries like insurance, healthcare and transport. — Reuters

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