SoftBank’s recent Vision Fund mishaps contributed to a massive drop in profits last quarter.
Vision problems. How bad is it? We’re talking 99% decrease in profits. Yikes!
- Softbank only made $23.6 million in the final three months of 2019.
- A large part of the drop came from huge investment losses in some of the Vision Fund’s flagship holdings – like Uber and WeWork.
Clear view? Softbank CEO Masayoshi Son believes the “tide is turning” for the Vision Fund.
How does it affect my wallet?
See right through em. The market didn’t buy the Vision Fund’s unprofitable IPOs.
Valuations through the roof. Uber, Lyft, SmileDirectClub, Slack, Peloton, and WeWork never made a profit…but at one point they were all worth tons of money. Billions!
- People are starting to rethink these valuations. The market is learning from last year’s IPO mistakes. Sorry Softbank!
We discuss the unprofitable startup situation a lot more in this video: Watch This Before Investing In A Startup
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