For technology investment, the founder and CEO of SoftBank group were struggling to increase the rate of money in the office-rent offer WeWork. Still, they are going ahead with Vision fund 2.
The investors who have large commitments with SoftBank are yet to leave $38 billion from public trade. According to Reuters’ analysis, it came to know that there is a lack of cash in its balance sheet. They have spent more than$10 billion and for valuation$47 billion. But the companies worth is set to be just $10-12 billion.
The first vision fund gave his son a huge influence on the start-up which raised $97 billion on fast-growing companies.
In addition to the Wework and poor public market, those companies will have a loss of money in such companies like Uber technologies and Slack Technologies that triggered the value of “unicorn” more than billion dollars said, Sceptics.
There is around 80 plus companies investment that is appearing to pay off including management and performance fees.
Debt piles up
The Japanese banks and Britain’s Standard chartered, Apple and Microsoft were going to contribute on the SoftBank in vision fund 2. Still, there is no information regarding the records for multiple billion investments on those ventures where the Japanese bank contributing very low budgets So they are planning to invest loans rather than cash contribution of $45 billion was made by Public Investment Fund by the sale of the asset.
Strains on SoftBank
The first fund contribution is given by the Worsening turmoil at Wework that is strained on SoftBank.And it’s credit ratings slashed big cutbacks including layoffs.
The balance sheet shows that the stock of SoftBank has fallen 13% from the month of January. It also has no cash on hand to finance new funds. The current assets and cash in this bank is $27.41 billion.