- Two of the biggest investors in SoftBank’s original Vision Fund are debating whether to significantly cut back on their commitments to a planned second one, Bloomberg reported.
- Saudi Arabia’s Public Investment Fund put $US45 billion into SoftBank’s original Vision Fund, but only plans to commit its profits from that investment into the second fund, according to the report.
- Abu Dhabi’sMubadala Investment is considering reducing its stake in the second Vision Fund to less than $US10 billion, from the $US15 billion it put into the first one, Bloomberg reported.
- The investors’ debates over their commitments to the second Vision Fund come as the original fund is reportedly down $US600 million on its stake in Uber and as it prepares for a big drop in the value of its WeWork investment as public investors have soured on that company’s planned public offering.
- Read all of Business Insider’s WeWork coverage here.
SoftBank CEO Masayoshi Son may have trouble raising a second Vision Fund after all.
With Japanese conglomerate’s original $US100 billion fund struggling with two of its highest profile investments, two of its biggest investors – Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala Investment – are re-evaluating how much money they will put into a planned follow-on fund, Bloomberg reported Monday. Both are considering significantly reducing their investment from the amounts they committed to the first fund, according to Bloomberg.
The Saudi investment vehicle committed $US45 billion to the original Vision Fund, making it the fund’s biggest backer. It now plans to invest only its profits from the first Vision Fund into the second one, Bloomberg reported.
Mubadala was the second largest outside backer of the Vision Fund, committing $US15 billion to it. The Abu Dhabi company is considering limiting its investment in the new fund to less than $US10 billion, according to Bloomberg.
A Mubadala representative told Bloomberg the company is still discussing its potential stake in the new fund and denied that it had yet made a decision on the when or how much to commit. A representative for the Public Investment Fund declined comment to Bloomberg.
SoftBank representatives did not immediately respond to an email from Business Insider seeking comment.
Venture investors still aren’t sure what to make of SoftBank’s $US100 billion Vision Fund. Depending on who you ask, they’re either rooting for it, or gleeful that it’s struggling with WeWork and Uber.
Uber and WeWork have given the first Vision Fund a black eye
The investors’ apparent trepidation over the new Vision Fund comes amid some high-profile setbacks for the original. SoftBank’s giant fund has reportedly lost some $US600 million on its investment in Uber, thanks to that company’s disappointing public offering and the subsequent decline in Uber’s stock price.
Meanwhile, WeWork, in which SoftBank has invested $US10.65 billion, is struggling to attract investors for its own public offering. Last week, the company was reportedly considering going public with a market capitalisation of as little as $US10 billion – less that a quarter of the $US47 billion valuation SoftBank conferred on it with a January investment.
Earlier this month, many venture capital experts told Business Insider they had faith SoftBank would still be able to find investors for its second Vision Fund, despite its troubles with Uber and WeWork.
SoftBank has already received commitments from Apple and Microsoft, among other investors, for the new fund.
Got a tip about SoftBank or WeWork? Contact this reporter via email at [email protected], message him on Twitter @troywolv, or send him a secure message through Signal at 415.515.5594. You can also contact Business Insider securely via SecureDrop.
- Read more about SoftBank and WeWork:
- WeWork is doing increasing amounts of business with SoftBank, which is also its biggest investor
- WeWork and Uber are giving SoftBank a black eye, but that doesn’t mean Vision Fund II is in trouble, experts say
- WeWork says it has a $US3 trillion market opportunity and has signed up only 0.2% of its potential customers. Here’s why real-estate experts say those numbers don’t add up.
- Here’s how WeWork answered the 5 biggest questions about its business – and why analysts are still worried about its upcoming IPO
Business Insider Emails & Alerts
Site highlights each day to your inbox.