Earnings season is slowing, with the largest U.S. tech companies already having reported second-quarter results. But oftentimes the most interesting results come not from your Amazons or Apples, but from smaller concerns — and even those that are not traditional tech companies. SoftBank, for example.
Today, the Japanese conglomerate and startup investing powerhouse reported earnings that were more than a little bleak. SoftBank’s quarterly losses, worth around 3.2 trillion yen ($24.5 billion), were its largest in history, leading to the company posting the following image atop its investor presentation:
They do say an image is worth a thousand words. So what went wrong? How did SoftBank lose so much money? The Vision Fund, its two-part effort to put more than $100 billion to work in private companies. Let’s see what caused the damage.
The Exchange explores startups, markets and money.
But before we do, it’s worth noting that the Vision Fund has already undergone a period of transition. In the wake of the WeWork IPO fiasco, it got a bit tougher on companies, with profit becoming the watchword of its world. But that didn’t mean that SoftBank stopped putting capital to work — nor was it immune from changing market conditions. Let’s take a look.
Source: Tech Crunch Social
Losses at SoftBank’s Vision Funds have consumed nearly all their historical gains