Summary: SoftBank’s tech investment arm, Vision Fund, posted its fourth straight quarter loss, with a pre-tax loss of $5 billion in Q4 2022 and $5.5 billion in investment losses. The firm’s poor performance affected its parent company, SoftBank Group, which had previously reported a profit in Q3 2022. Some of the companies in its portfolio that led to its losses include Chinese AI firm SenseTime and Indonesian firm GoTo.
Vision Fund, an investment arm of SoftBank, posted its Q4 earnings on Tuesday and showed its fourth straight loss. It means that the firm reported losses all through 2022.
According to a CNBC report, the company’s pre-tax loss in the last quarter of 2022 was $5 billion while the amount it lost on investments was $5.5 billion. Its performance affected its parent’s company, SoftBank Group, which was on a seemingly profitable path after reporting a profit in Q3 2022.
Vision Fund is a segment of the group that focuses on placing bets on tech companies. With the tech industry undergoing critical times and companies seeing their valuation being wiped off, it is not strange that a major backer would equally suffer.
Also read:
–Samsung Reports Huge Decline In Profit As Asian Chipmakers See All-Round Losses
–Microsoft Could Announce Bing + ChatGPT At Today’s Surprise Event
–Google Releases Bard, A ChatGPT Rival AI.
Some highlighted companies in its portfolio that are responsible for its loss include SenseTime, a Chinese AI company that lost 57% of its valuation in 2022 and GoTo, an Indonesian firm that lost 65% of its value during the same period.
Typically, SoftBank (and by extension, Vision Fund) is known for its bullish approach but that seems about to change. Back in May, amidst the upheaval of macroeconomics and mass layoffs in tech, Masayoshi Son said that the investment company would be more conservative in its approach. SoftBank has since sold its stake in Uber and some of its shares in Alibaba.
For upcoming founders, it is important to understand the state of economics in the tech industry now and not be too expectant of huge investments without a viable product that investors can place their faith in.
For your daily dose of tech, lifestyle, and trending content, make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can also email us at info@plat4om.com and join our channel on Telegram at Plat4om. Finally, don’t forget to subscribe to OUR YOUTUBE CHANNEL.
