Strategies For Investing In Softbank Funds: A Guide

SoftBank Group Corp. is a Japanese multinational investment holding company that focuses on technology-based investment management. With over $100 billion in capital, the SoftBank Vision Fund is the world's largest technology-focused venture capital fund. The fund is managed by SoftBank Investment Advisers, a subsidiary of the SoftBank Group, and was founded in 2017. It has since expanded to a second fund, Vision Fund 2, which was created in 2019. The fund specializes in growth capital and social impact investments, with a focus on sectors such as artificial intelligence, robotics, and software. SoftBank's stock symbol is 9984 on the Tokyo Stock Exchange and SFTBY on the OTC Markets Group in the United States.

SoftBank's investment strategy

SoftBank Group Corp. is a Japanese multinational investment holding company that focuses on investment management. The group primarily invests in companies operating in technology that offer goods and services to customers in a multitude of markets and industries.

The company's Vision Fund, founded in 2017, is a venture capital fund with over $100 billion in capital, making it the world's largest technology-focused investment fund. The fund targets late-stage startups and has been instrumental in providing funding to disruptors like Uber, WeWork, DoorDash, and Slack.

In addition to its financial investments, SoftBank also values dynamic leadership and strong investment theses when deciding where to allocate its capital. The company's CEO, Masayoshi Son, is known for his hands-on approach and involvement in running the fund, demanding face-to-face meetings with founders before investing.

SoftBank's Vision Fund 1

SoftBank Group Corp. is a Japanese multinational investment holding company that focuses on investment management. The group primarily invests in companies operating in technology that offer goods and services to customers in a multitude of markets and industries.

In May 2017, SoftBank Group and the Public Investment Fund (PIF) created the SoftBank Vision Fund with over $100 billion in capital, making it the world's largest technology-focused venture capital fund. SoftBank contributed $28 billion, while PIF contributed $45 billion. The fund is managed by SoftBank Investment Advisers, a subsidiary of the SoftBank Group.

SoftBank Vision Fund 1 is advised by SoftBank Investment Advisers and has made investments in over 450 leading tech companies. These include:

• Arm, a company using technology to architect a smarter world
• Aurora, a company delivering the benefits of self-driving technology
• ByteDance, a company enabling people to discover and create content powered by technology
• Grab, a company improving the quality of life in Southeast Asia
• Roivant, a company developing innovative medicines through a novel form of industrial organization in R&D
• Beike, a company using technology to bring reliability and transparency to China's real estate market
• Alto, a company building the world's most patient-centric pharmacy

The fund's notable investments also include a 4.9% position in Nvidia stock, which was sold in February 2019 due to a prolonged plunge in Nvidia's stock price. By June 2024, the market value of those shares had exceeded $150 billion.

SoftBank's Vision Fund 2

SoftBank Group Corp. is a Japanese multinational investment holding company that focuses on investment management. The group primarily invests in companies operating in technology that offer goods and services to customers in a multitude of markets and industries.

SoftBank Vision Fund 2 was founded in 2019, two years after the establishment of the original SoftBank Vision Fund. The second fund was created after SoftBank Group and the Public Investment Fund (PIF) raised $100 billion, with PIF contributing $45 billion, SoftBank contributing $28 billion, Mubadala Investment Company contributing $15 billion, and the rest from other investors including Apple.

SoftBank Vision Fund 2 is advised by SB Global Advisors Limited, a subsidiary of the SoftBank Group. The fund focuses on AI-based technology and is managed by Rajeev Misra, who was previously SoftBank's head of strategic finance.

In May 2021, SoftBank announced that the total fair value of both funds as of 31 March 2021 was $154 billion, and the Vision Funds made a record profit of $36.99 billion due to its successful investment in Coupang. Following this, SoftBank raised the size of Vision Fund 2 to $30 billion.

In July 2022, Rajeev Misra stepped back from his role in managing SoftBank Vision Fund 2, and several other executives also stepped down. In May 2023, it was announced that losses from the SoftBank Vision Fund had widened by 70% to a record $32 billion from the previous year.

SoftBank's investment sectors

SoftBank is a Japanese multinational investment holding company that focuses on investment management. The company primarily invests in technology companies that offer goods and services to customers in a multitude of markets and industries, including the internet, automation, robotics, artificial intelligence, software, logistics, transportation, biotechnology, and more.

• Arm Holdings (semiconductors)
• Alibaba (e-commerce)
• OYO Rooms (hospitality)
• WeWork (coworking spaces)
• Deutsche Telekom (telecommunications)
• Sprint Corporation (mobile carrier)
• Yahoo! Japan (internet services)
• Boston Dynamics (robotics)
• Uber (ride-sharing)
• OlaCabs (ride-sharing)
• Snapdeal (e-commerce)
• Housing.com (real estate)
• Coupang (e-commerce)
• Biofourmis (healthcare technology)
• ByteDance (content creation)
• Roivant (pharmaceuticals)
• Grab (ride-sharing)
• Paytm (digital payments)
• Flipkart (e-commerce)
• Compass, Inc. (real estate)
• Katerra (construction)
• Zume (food technology)
• Perplexity AI (AI search engine)

SoftBank's investment strategy is guided by its Vision Fund, which was created in 2017 with a focus on emerging technologies like artificial intelligence, robotics, and the internet of things. The fund intends to invest in companies that are developing technologies in line with global artificial intelligence trends across various sectors, including finance and transportation.

SoftBank's stock history

SoftBank Group Corp. is a Japanese multinational investment holding company that focuses on investment management. The group primarily invests in companies operating in technology that offer goods and services to customers in a multitude of markets and industries.

SoftBank was founded in September 1981 as a software distributor by then-24-year-old Masayoshi Son, who remains the company's largest shareholder. In 1994, the company went public, valued at $3 billion. In the 1990s, Son made large investments in Internet services and the so-called new economy in general. In 1996, SoftBank formed a joint venture with American internet company Yahoo!, creating Yahoo! Japan, which would become a dominant site in the country.

In 2000, SoftBank made its most successful investment – $20 million in a then-fledgling Chinese Internet venture called Alibaba. This investment turned into $60 billion when Alibaba went public in September 2014. In 2013, SoftBank increased its stake in French robotics company Aldebaran Robotics, which it had first invested in in 2012. In 2015, SoftBank increased its stake to 95%.

In 2015, SoftBank also acquired DramaFever and appointed a former Google executive, Nikesh Arora, as Representative Director and President. However, Arora stepped down in June 2016 amidst pressure from investors.

In 2017, SoftBank and the Public Investment Fund of Saudi Arabia (PIF) partnered to create the Softbank Vision Fund, the world's largest private equity fund with a capital of $93 billion. In 2019, SoftBank Vision Fund 2 was founded. However, in 2020, a report from the Wall Street Journal stated that the fund would fall short of its $108 billion goal, and in 2022, the fund posted a record loss of $27.4 billion. In May 2023, SoftBank Group disclosed that its Vision Fund lost a record $32 billion in the fiscal year ending in March 2023.

Frequently asked questions