Aug 8, 2022 - Economy
Softbank to cut costs "dramatically" amid continuing losses
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Tech's rout sent SoftBank's Vision Fund deep into the red last quarter.
Driving the news: The 5-year-old technology investment fund posted a $21.7 billion (2.9 trillion Japanese yen) loss — its second-biggest quarterly loss ever.
Why it matters: Global economic challenges are overpowering the optimism of one of the biggest check writers in venture capital, threatening the growth of emerging tech companies.
- "For new investments, we have to be more selective," SoftBank Group founder and CEO Masayoshi Son told analysts this morning.
By the numbers: SoftBank's Vision Funds approved some $600 million worth of investments for the three month period ending June, Axios Pro's Lucinda Shen noted.
- That's down from $20.6 billion in the same time last year and from $2.4 billion in the first three months of this year.
What to watch: Costs, including staff size, "may need to be reduced dramatically," the company said.
