For investors sitting on massive amounts of money, few institutions have the scale to deploy as much capital as SoftBank has shown with its $100 billion Vision Fund, the experts said.
In its last private funding round a $4 billion investment by SoftBank in January the coworking giant was valued at $47 billion.
Read this: WeWork’s biggest outside shareholder, SoftBank, is reportedly asking for the IPO to be put on hold because investors don’t seem interested WeWork and Uber may show problems with SoftBank’s strategy Until recently, SoftBank had a lot to crow about with its Vision Fund.
As of the end of June, SoftBank’s Vision and much smaller Delta funds had seen combined unrealized gains of $16 billion on its investments, including a $3.8 billion gain in the second quarter alone.
SoftBank’s investment thesis has been based on the assumption that technology is often a winner-take-all or winner-take-most industry.
SoftBank’s paper losses on Uber and prospective losses on WeWork could make it more difficult for it to raise money for the new Vision Fund, venture experts say.
Potential investors in the fund might look for other types of investments or they could demand better terms from SoftBank, such as lower management fees.