Observed Signal · May 11, 2023 · Earnings Report · Source: Trending Topics · Impact: 4/5 · Sentiment: Negative
SoftBank Vision Fund Lost $32B on Startup Valuation Cuts
SoftBank Vision Fund, one of the world's largest technology investment funds, reported a $32 billion loss for the fiscal year ending March 2023, according to TechCrunch. The loss widened 70% from $19 billion a year earlier, driven by valuation markdowns across its private and public technology portfolio amid a weakening global economy. Vision Fund 1 recorded unrealized losses of $1.6 billion each on SenseTime Group and GoTo, and nearly $800 million on DoorDash. SoftBank has adopted a "defense mode," slowing new investments to just 25 deals worth around $400 million over the past twelve months, compared to more than 40 deals in 2018. The portfolio fair value was cut by $2.3 billion during the quarter. The broader downturn has also hit other investors: Invesco cut Swiggy's valuation to $5.5 billion, and Vanguard marked down Ola below its 2019 valuation. SoftBank estimates 94% of its portfolio companies have more than 12 months of cash runway.
SoftBank Vision Fund is one of the largest technology investors globally; a $32 billion annual loss and defensive posture signal a severe downturn in tech startup valuations, affecting funding and growth prospects across the digital advertising and technology ecosystem.
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Key Takeaways & Evidence Grounding
- SoftBank Vision Fund lost $32 billion in the fiscal year ended March 2023.
- The annual loss increased 70% from $19 billion in the prior year.
- Vision Fund 1 recorded unrealized losses of $1.6 billion each on SenseTime and GoTo, and nearly $800 million on DoorDash.
- SoftBank closed 25 deals totaling about $400 million in the past twelve months, versus over 40 deals in 2018.
- SoftBank estimates 94% of its portfolio companies have a cash runway of more than twelve months.
Connected Companies & Entities
9 Entities mapped“Der Vision Fund 1 hat einen nicht realisierten Verlust von jeweils 1,6 Milliarden Dollar bei der SenseTime Group und GoTo gemacht....”
“Der Vision Fund 1 hat einen nicht realisierten Verlust von jeweils 1,6 Milliarden Dollar bei der SenseTime Group und GoTo gemacht....”
“sowie fast 800 Millionen Dollar bei DoorDash....”
“Der SoftBank Vision Fund, einer der größten und wichtigsten Risikokapitalfonds der Welt, hat im Geschäftsjahr, das im März endete, 32 Millia...”
“Noch vor einem Jahr hat die Investmentgesellschaft eine Finanzierungsrunde bei dem indischen Essenslieferanten angeführt, die das Unternehme...”
“so die SoftBank Group in ihrem Ergebnisbericht vom Donnerstag....”
“Der Vision Fund und Tiger Global haben das Tempo ihrer Transaktionen im Jahr 2021 erhöht....”
“Invesco hat beispielsweise die Bewertung von Swiggy in seinen Beständen auf 5,5 Milliarden Dollar gesenkt....”
“Die Bewertung von Ola ... hat Investor Vanguard unter den Wert des Startups im Jahr 2019 gesenkt....”
Ontology Mapping & Concepts
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