As per the recent reports, the Japanese multi-national company, Softbank is facing obstructions to raise more money for its new fund which it expected to be $100 billion. As expected, Softbank has not received a warm welcome from some of the biggest investors in the world. They refused to contribute any funds or agreed to contribute a very small amount. These investors are Canada Pension Plan Investment Board, sovereign health fund of Saudi Arabia and Public Investment Fund.
In the month of May, CEO of Softbank Group, Masayoshi Son has said that the current funds will be similar to the first fund, the Vision Funds 1, and will have equal contributions of $100 billion. The Vision Funds were also a watermark for the company to raise such a large amount. The CEO added to his statement that previous investors were further interested in putting their contributions to the second fund; also new investors from around the world were showing interest.
Now, according to the Journal, many investors are reluctant towards contributing to the Vision Fund 1 due to the fact that Softbank itself can afford the expenses without any outside help, then what is the need for investments from outer sources; and even experts with less experience were worried about lacking transparency of the funds.
In answer, the spokesperson of Softbank said that the concerns that investors are showing less interested in the next fund is inaccurate and misleading. On Monday, the company’s shares fell by 6.22%.
The Vision Fund 1 of Softbank is known for betting in large companies like Grab, Didi Chuxing and Uber. It also invested in Slack, a messaging platform. WeWork now known as The We Company, provides space for start-ups, also had many investments of Softbank. Majorly Saudi Arabia invested in the Vision Fund 1.