Scrutiny Over SoftBank's Mega Fund Could Impact VC Fund Raising And Deals
Scrutiny over how and how much Softbank's Vision Fund is investing will likely impact venture fund raising and valuations for investments in emerging companies.
- In the venture capital world, bigger has been considered better, and the biggest is the SoftBank's Vision Fund of $100 billion.
- Under the leadership of Masayoshi Son of Japanese conglomerate and long-time tech investor SoftBank Group, the plan for the Vision Fund is to raise a new fund every couple of years and invest $50 billion a year.
- One concern is that the SoftBank mega fund would end up raising investment valuations at emerging companies that venture capitalists target.
- SoftBank's Vision Fund has funded WeWork and Uber at valuations in the unicorn-plus stratosphere.