SoftBank Vision Fund Overview and Notable Investments

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SoftBank Vision Fund is a massive investment vehicle created by SoftBank Group, a Japanese multinational conglomerate. With a massive $100 billion in funding, it's one of the largest investment funds in the world.

The fund is led by Masayoshi Son, the CEO of SoftBank Group, who has a reputation for making bold and unconventional investments. He's known for his long-term vision and willingness to take risks.

SoftBank Vision Fund has made some remarkable investments, including in companies like Uber, Slack, and DoorDash. These investments have paid off, with Uber's valuation reaching over $50 billion.

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History

SoftBank Vision Fund was launched in 2016 by Masayoshi Son, the CEO of SoftBank Group.

The fund was backed by Saudi Arabia's Public Investment Fund (PIF) with a $45 billion investment.

SoftBank's initial public offering (IPO) in 2018 raised $23.5 billion, which was then used to increase the Vision Fund's assets under management.

Masayoshi Son has stated that he wants the Vision Fund to be a $300 billion fund by 2025.

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Business Overview and Notable Investments

Credit: youtube.com, Go Inside the SoftBank Vision Fund's 'Chaotic Culture'

SoftBank Vision Fund is a massive investment firm with a global reach. It's managed by SoftBank Investment Advisers and SoftBank Global Advisors, both subsidiaries of the SoftBank Group.

The firm has a large investment team that evaluates and selects companies to invest in, primarily through venture capital or private equity investments. Most of these investments are over $100 million, particularly in Silicon Valley companies.

SoftBank Vision Fund has made numerous notable investments, including companies like Uber, WeWork, and ByteDance.

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Notable Investments

SoftBank Vision Fund has made some incredible investments over the years, and I'm excited to share some of the notable ones with you.

10x Genomics and Arm Ltd. are two notable investments made by SoftBank Vision Fund. Automation Anywhere and Balyo are also part of their impressive portfolio.

Let's take a look at some of the other companies they've invested in:

  • ByteDance
  • C2FO
  • Chime (company)
  • Cohesity
  • Compass
  • Coupang
  • Cruise
  • DiDi
  • Digits
  • DoorDash
  • eToro
  • Fanatics
  • Flipkart
  • Flexport
  • FTX
  • Fungible Inc.
  • Getaround
  • Grab
  • Improbable
  • Kabbage
  • Katerra
  • Klarna
  • Lenskart
  • Mapbox
  • Nuro
  • Nvidia
  • OneWeb
  • Opendoor
  • OurCrowd
  • Oyo Rooms
  • Ping An Good Doctor
  • PolicyBazaar
  • Rappi
  • Revolut
  • Roivant Sciences
  • Slack
  • Swiggy
  • The Hut Group
  • Tractable (company)
  • Uber
  • Unacademy
  • View, Inc.
  • Wag
  • WeWork
  • ZhongAn
  • Zume
  • Zymergen

Business Overview

SoftBank Vision Fund is managed by SoftBank Investment Advisers, a subsidiary of the SoftBank Group.

Credit: youtube.com, How Data Centers Became Hot Real Estate Investments

SoftBank Investment Advisers is headquartered in London and has additional main offices in Silicon Valley and Tokyo.

The firm's investment team evaluates and selects companies for the funds to invest in, with a focus on venture capital and private equity investments.

Most of the firm's investments in Silicon Valley companies have been over $100 million.

SoftBank Investment Advisers has offices in Abu Dhabi, Hong Kong, Mumbai, Riyadh, Shanghai, and Singapore, in addition to its main offices.

Rajeev Misra is the current CEO of SoftBank Investment Advisers, having previously served as SoftBank's head of strategic finance.

$500M Investment in OpenAI

SoftBank Vision Fund is investing $500 million in OpenAI, making it one of the largest private deals in history. This massive funding round values the artificial intelligence company at $150 billion.

The investment is a significant milestone for OpenAI, which has been facing challenges lately, including a wave of senior departures. Chief Technology Officer Mira Murati and two senior researchers have left the company in recent times.

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Credit: youtube.com, Perplexity Raising at $8B

SoftBank's involvement is notable, given its past focus on AI-adjacent investments. The Japanese conglomerate is the majority owner of chip designer Arm, whose technology plays a crucial role in AI development.

SoftBank's CEO, Masayoshi Son, has been a long-time AI enthusiast, but the Vision Fund's track record has been mixed. The fund has had high-profile stumbles, like WeWork, alongside successes such as DoorDash.

This funding round, led by lead investor Thrive Capital, is expected to close this week. Thrive Capital is contributing over $1 billion to the round, with other participants including Tiger Global Management, Coatue Management, and Microsoft.

Picsart's $130M Funding

Picsart, the world's #1 creative platform, secured a $130 million Series C financing round led by SoftBank Vision Fund 2.

This funding brings Picsart's valuation to over $1 billion, a significant milestone for the company.

New investors G Squared and Tribe Capital participated in the round, alongside existing investors Sequoia, DCM, Graph Ventures, and Siguler Guff & Company.

Wooden tiles spelling ETF growth on a wooden surface, symbolizing investment strategy.
Credit: pexels.com, Wooden tiles spelling ETF growth on a wooden surface, symbolizing investment strategy.

Picsart plans to use the new capital to expand its AI-driven technology and "prosumer" tools, explore acquisitions, and continue building its world-class team.

The company's investment director, Serena Dayal, believes content will continue to be central to the digital economy and expects growth in this space to continue.

Picsart's community creates, remixes, and shares millions of visual stories every month using the company's powerful and easy-to-use editing tools.

With one of the largest open-source content collections in the world, Picsart has amassed a vast library of free-to-edit photos, stickers, backgrounds, templates, and more.

Financial Performance

SoftBank Vision Fund's financial performance has been impressive, with a valuation of $100 billion in 2020, making it one of the largest private equity funds in the world.

The fund's first close in 2016 raised $93 billion, with a second close in 2017 adding another $15 billion, bringing the total to $108 billion.

SoftBank's aggressive investment strategy has led to significant returns, with the fund's portfolio companies valued at over $250 billion in 2020, a 130% increase from 2017.

The fund's focus on technology and innovation has paid off, with companies like Uber and Slack generating significant returns.

SoftBank's financial performance has been boosted by the success of its portfolio companies, which have collectively achieved over $100 billion in revenue.

Recent Developments

Credit: youtube.com, SoftBank's Vision Funds posts $39 billion loss

SoftBank Vision Fund has been making headlines with its recent developments.

The fund's second fund, SoftBank Vision Fund 2, was announced in 2019 with a target size of $108 billion.

It has been investing in various sectors, including technology, finance, and healthcare.

One notable investment is in the ride-hailing company Didi Chuxing, which was valued at $56 billion after its investment.

SoftBank Vision Fund has also been investing in Indian companies, including Paytm and PolicyBazaar.

The fund's investments have been generating returns, with some companies experiencing significant growth.

Frequently Asked Questions

Is SoftBank Vision Fund profitable?

Yes, SoftBank Vision Fund is profitable, contributing to SoftBank's overall profitability in the July-September quarter. Its positive results helped SoftBank return to profit after a period of losses.

Who are the investors in SoftBank Vision Fund 1?

The SoftBank Vision Fund 1 has investors including the Public Investment Fund, SoftBank, Mubadala Investment Company, and Apple, with the Public Investment Fund contributing the largest share of $45 billion. Other investors also contributed to the $100 billion fund.

Who is the CEO of SoftBank Vision Fund?

The CEO of SoftBank Vision Fund is Alex Clavel, who took over after Rajeev Misra's departure. Misra, a key figure in setting up the fund, has formally stepped down.

Bertha Hoeger

Junior Writer

Bertha Hoeger is a versatile writer with a keen interest in financial institutions and community development. Her work primarily focuses on banking and microfinance sectors, providing insightful analyses of various Indian financial entities and organizations. She has covered a range of topics, from banks based in Maharashtra and those established in 2019 to private sector banks and microfinance companies.

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