As Values Crash, Startups Focus on Profitability, Not Growth

This year, Silicon Valley companies — most notably WeWork and Uber Technologies — are estimated to have lost about $100 billion in value. Car subscription company Fair and software company UiPath are two others that have downsized, and scooter company Lime has had to tweak its operations to prove it can be profitable. As a result, startup executives are honing their pitches and venture capitalists are more wary of investing. Ahoy Capital’s Chris Douvos noted that the five-year “rollicking” party appears to be over. Continue reading As Values Crash, Startups Focus on Profitability, Not Growth

SoftBank to Lend Employees $20B to Invest in Vision Fund

SoftBank Group plans to lend up to $20 billion to its 400 employees to buy stakes in its second Vision Fund, following the first fund launched in 2017. That first $100 billion fund, which debuted in 2017, made big investments in Uber Technologies, WeWork, and Chinese ride-hailing company Didi Chuxing Technology, driving up their valuations. For the second Vision Fund, SoftBank chief executive Masayoshi Son may invest as much as $15 billion, and SoftBank could put in $38 billion, more than is typical for a fund sponsor. Continue reading SoftBank to Lend Employees $20B to Invest in Vision Fund

SoftBank Debuts Vision Fund 2, Focused on AI Investment

SoftBank Group changed technology venture capital when it launched the Vision Fund in May 2017, by setting $100 million as the minimum investment. Since then, the Vision Fund, which raised almost $100 billion, has invested in Uber Technologies, Didi Chuxing Technology and other startups. Now, the Japanese company is debuting Vision Fund 2 and jumpstarting it with its own $38 billion investment. The fund, which will focus on artificial intelligence, has already drawn investment commitments from Apple and Microsoft. Continue reading SoftBank Debuts Vision Fund 2, Focused on AI Investment

Google Push Could Spark Quantum Computing in the Cloud

Google is getting closer to offering quantum computing over the cloud. It’s uncertain if a quantum computer, which is based on “qubits” rather than 1s and 0s, can out-perform a supercomputer, but Google and other companies are betting it will be able to perform certain important tasks millions of times faster. Google and its rivals would be more likely to rent quantum computing over the Internet, since the computers are too bulky and require too much special care to live in most companies’ data centers. Continue reading Google Push Could Spark Quantum Computing in the Cloud

SoftBank, Saudi Arabia Announce World’s Largest Tech Fund

Over the weekend, during President Trump’s visit to Saudi Arabia, Japan’s SoftBank Group and Saudi Arabia’s sovereign-wealth Public Investment Fund (PIF) announced the launch of a new tech fund that has so far secured $93 billion of capital. The “SoftBank Vision Fund is targeting a total of $100 billion within six months,” reports The Wall Street Journal, and plans to “steer capital to cutting-edge technologies in U.S. startups and other global firms.” SoftBank CEO Masayoshi Son already promised to invest $50 billion of the new fund in American startups. Continue reading SoftBank, Saudi Arabia Announce World’s Largest Tech Fund

SoftBank Signals Major Ambitions with $100 Billion Tech Fund

Japan’s SoftBank Group, led by chief exec Masayoshi Son, is partnering with a Saudi sovereign-wealth fund to establish a multibillion-dollar tech investment fund. SoftBank is an ambitious tech investor, as evidenced by its recent deals with China’s Alibaba Group, mobile carrier Sprint and chip designer ARM Holdings. Today, the company “plans to invest at least $25 billion over the next five years through a fund dubbed the SoftBank Vision Fund,” reports The Wall Street Journal. “Saudi Arabia’s Public Investment Fund may contribute an additional $45 billion over the next five years as the fund’s lead partner.” SoftBank is in talks with additional global investors, who could “push the new fund up to $100 billion to become the world’s ‘biggest investor’ in technology over the next decade.” Continue reading SoftBank Signals Major Ambitions with $100 Billion Tech Fund