SoftBank’s Vision Fund, launched in 2017 with $100 billion in capital, reshaped venture capital through massive checks and sky-high valuations—before suffering $30B+ in losses from WeWork, Uber, and other bets by charismatic CEO Masayoshi Son.
The Launch
In May 2017, SoftBank CEO Masayoshi Son announced the Vision Fund: $98.6B raised (largest VC fund in history), primarily from Saudi Arabia’s Public Investment Fund ($45B) and Abu Dhabi’s Mubadala ($15B).
Son’s thesis: The “information revolution” would create 100x returns. SoftBank would write $100M-$10B checks, take board seats, and help portfolio companies dominate markets through aggressive growth spending.
The Strategy
Vision Fund deployed capital at unprecedented speed: $70B invested by 2019 in 80+ companies. The playbook:
- Massive checks: Uber ($10B+), WeWork ($10B+), DoorDash ($680M), Grab ($4.5B)
- Inflated valuations: Push companies to unicorn/decacorn status
- Growth at all costs: Subsidize customer acquisition, kill competitors
- Market dominance: Winner-take-all bets in each sector
Portfolio highlights: Uber, WeWork, DoorDash, Slack, Compass, Grab, DoorDash, Paytm, Cruise, Nvidia (early stake), ARM Holdings (2016 acquisition for $32B).
The Disasters
WeWork (2019): Vision Fund invested $10.6B at $47B valuation. IPO collapsed, company nearly bankrupt, SoftBank lost $11.5B+ on the investment.
Uber (2018): $7.7B invested; IPO at lower valuation than private rounds; stock languished for years.
Other losses: Katerra (construction startup, bankrupt 2021, $2B loss), Zume Pizza (robotic pizza, shut down 2020, $445M loss), Brandless (bankrupt 2020, $240M loss).
2019 fiscal year: Vision Fund lost $17.7B—one of the worst VC results ever.
The Collapse & Recovery
March 2020: SoftBank’s stock fell to $33 (from $50+), pressured by portfolio crashes. Son announced emergency measures: $41B asset sales, $4.8B stock buyback.
2020-2021 recovery: DoorDash, Coupang, and others went public at high valuations. Vision Fund rebounded: $50B+ profit in fiscal 2020-2021.
Vision Fund 2: Launched in 2019 with $56B target (mostly SoftBank’s own capital after Saudi Arabia balked).
The Reckoning
By 2022-2023, tech crash hammered portfolio again: $27B loss in fiscal 2022, $32B loss in fiscal 2023. Investments in Chinese tech (Didi, Alibaba) were crushed by regulatory crackdowns.
Son’s reputation shifted from visionary to reckless gambler. Critics argued Vision Fund inflated valuations, funded unsustainable business models, and distorted startup ecosystems globally.
The fund’s legacy: accelerated unicorn mania, normalized $1B+ rounds, and proved even $100B couldn’t guarantee returns when fundamentals didn’t matter.
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