SoftBank Virtually Halts New Funding as It Contends With Persistent Losses

SoftBank Group's investment vehicles posted a loss of nearly $6 billion in the quarter that ended in December as the Japanese tech investor continues to bleed through the market downturn and significantly pares back new backings. From a report: This is the fourth straight quarter in which SoftBank Group has lost money, prompting many to challenge the fundamental thesis of the giant, which has deployed more capital in the tech markets globally than anyone else in the past decade. SoftBank said it lost $5.8 billion across Vision funds and Latin America fund in the quarter. While a $5.8 billion loss is nothing to write home about, SoftBank will take comfort in the fact that it lost $10 billion in the previous quarter.

The company said the fair value of its current late-stage portfolio is over $37 billion. In 2021, SoftBank was one of the most prolific investors globally, cutting checks worth over $20 billion in just one quarter as many investors aggressively scrambled to win large deals. As the market reversed early last year, many backers have had to brutally recalibrate their strategies. The persistent losses are a big headache for Masayoshi Son, the founder and chief executive of SoftBank Group. With the days of zero interest capital environment, which saw investors raise record capital in the past two years, behind us, SoftBank might struggle to raise its next fund. It also has some intermittent issues to sift through before it goes about the next big fundraise.

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