Softbank 100 billion US dollars fund “steward”: will vote 70-100 technology companies

Japan Softbank initiated the establishment of the Vision Fund, a $ 100 billion vision fund, that focused on investing in technology startups last year. In an interview with Mobile World Congress on Monday, visionary chief executive Rajeev Misra said SoftBank would invest 70-100 tech companies through its $ 100 billion vision fund.

According to its latest financial report, about one-third of the investment funds of the Softbank Vision Fund have been settled. And Misra said the attraction of Vision Fund is that it is a “patient, long-term” investor.

Since the first major investment was completed in May 2017, the Vision Fund has invested in 30 companies, including taxi service company Uber, chip maker NVIDIA, and Indian e-commerce company Flipkart.
When asked if the vision fund’s goal is to invest in as many companies, Misra said it will invest 70 to 100 companies.

According to the latest Softbank financial data, about one-third of the funds have been settled.

Mishra said the fund’s appeal was due to its being a “patient, long-term” investor.

“We do get the voice of any startup that wants to raise a key capital, and we want to grab the brunt, not because we have the capital, but there is too much capital in this world, but because we now have an ecosystem , The ecosystem will have an exponential effect, “notes Mishra in a television interview at Mobile World Congress.

Mishra explains that the “ecosystem” means SoftBank can connect the companies it invests with, see if they can coordinate with each other and introduce new markets for them.

However, the Softbank Vision Fund has also been criticized for its generous investment pushing up the valuation of technology companies and thus affecting some venture capitalists, making it more and more difficult for them to invest too much in valuations.

Mishra said the vision fund has a “great symbiosis” with venture capitalists. Vision funds can provide more liquidity to early investors entering start-ups.

“The venture capital community can benefit from the Vision Fund because we typically make major investments in companies and we also buy sub-shares from venture capital firms that really want to exit,” said Misra.
The new shares are mainly bought by new investors from existing investors.