Softbank’s second Vision fund hit by failed Wework IPO
Softbank founder and chief executive Masayoshi Son is struggling to raise money for a second technology investment fund following the failed public offering of office space provider Wework.
Son is preparing to go-ahead with the Vision Fund 2, despite advice to delay, according to Reuters. However, the fund is likely to be smaller than the planned $108bn.
Read more: Softbank in talks to invest extra £1bn in Wework
The only large commitment comes from Softbank itself – which has pledged $38bn – as investors have yet to sign up to the fund.
The size of the pledge could also be in doubt due to recent investment setbacks and a lack of cash.
In July Softbank said a group of companies, including Apple, Microsoft and Standard Chartered, would commit to the second Vision Fund.
However, it is not yet clear how firm those pledges are or how much they will be worth.
The failure of Wework’s IPO and concerns over its business model have raised questions over Son’s reputation as a savvy investor.
Read more: Softbank executives bristle at Vision Fund investment scheme
Softbank and Vision Fund have investmed more than $10bn into the co-working firm.
The first Vision Fund raised $97bn and made huge bets on fast grown but unproven companies.