SoftBank Returns to Active Investing, Doubles Investments in Q2
After a period of relative dormancy, SoftBank is once again making bold moves in the startup investing landscape. The Japanese conglomerate, known for its active and visible presence in the private markets, has ramped up its investing cadence and more than doubled its investments in the quarter ended June 30, according to its investor presentation.
SoftBank’s decision to dive back into the market comes as somewhat of a surprise, especially considering the ups and downs it has experienced in its startup deals. Many expected SoftBank to wait and see how its less-mature Vision Fund 2 performs in the current economic conditions. However, the company has described its posture toward the market as “shifting to offense mode.”
The conglomerate’s decision to increase investments is a bold move, considering it reported a consolidated loss of 699 billion yen (~$4.9 billion) on its investments in the quarter. However, SoftBank’s ability to bounce back and take risks is what makes it such an intriguing company to follow.
SoftBank has been vocal about the slowing losses from its Vision Fund investments in recent months, which likely contributed to its confidence in doubling down on its investments. While some investors may have retreated from the private markets after heavy spending, SoftBank has chosen to embrace the challenges and uncertainties associated with startup investments.
It’s important to keep in mind that SoftBank’s investment track record hasn’t been flawless, with some deals making headlines for their less-than-ideal outcomes. However, the conglomerate’s willingness to learn from its mistakes and “go turtle” when necessary showcases its adaptability and resilience.
Overall, SoftBank’s move to increase its investments marks a significant shift in strategy and highlights the company’s confidence in its ability to navigate the volatile startup landscape. As SoftBank continues to make bold moves, it will be interesting to see how its investing journey unfolds and the impact it has on the startup ecosystem.
