SoftBank Group Corp (9984.T) is planning to cut headcount at its flagship Vision Fund investing arm. CEO Masayoshi Son said on Monday, after a crash in the value of its portfolio pushed his conglomerate to a record quarterly net loss. Vision Fund, which upended the world of venture capital with splashy bets on startups, posted a $23.1 billion loss in the April-June quarter.

The Vision Fund arm approved just $600 million in new investments in the first quarter, compared with $20.6 billion in the same period a year earlier. "We need to cut costs with no sacred areas," says the head of the fund. The fund has already suffered a series of high-profile reversals after big bets by the first Vision Fund in late-stage startups soured.

Shares closed up 0.7%, before the earnings were released, in line with the benchmark Nikkei 225 index. Hedge fund Tiger Global saw its flagship fund fall 50% in the first half of the year after it underestimated the impact of surging inflation on markets. Tiger Global competes with "unicorn hunter" Son on deals.
Posted by WA wagmi
Tap to Copy the Short Url to This Post: 
One-Stop Business News backed by Mark Cuban. Free to Use →