SoftBank Vision Fund Reports a Heavy Loss in Q3

SoftBank Group, a leading Japanese multinational conglomerate, took a major hit in the third quarter of 2021 amid a sharp decline in the valuation of companies like Coupang. SoftBank recently published its results for Q3 of 2021 and posted substantial losses in its Vision Fund unit.

The Group reported a net loss of 397 billion yen ($3.5 billion) between July and September. SoftBank’s decent performance in other units was dragged down by heavy losses in its Vision Fund unit. The latest performance by SoftBank’s Vision Fund is the worst ever in its history.

During the recent quarter, the value of Digi Global and Coupang dropped heavily. Didi Global lost nearly 50% of its value while the stock of Coupang decreased by approximately 40% between July and September 2021.

“Naturally, the focus of investors and capital providers is completely different. Investors pay close attention to the daily movements of indicators that affect the stock prices of these industries, such as interest rates, Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rates and employment statistics, as well as the monetary policies of the authorities, and make decisions based on these indicators,” Masayoshi Son, CEO of SoftBank, commented.

“However, for capital providers who are looking to shape the future over a 10- to 30-year span, these indicators are not necessarily important. As a capital provider, all I see is how technology is going to create a paradigm shift. In the formative years of the Internet, most Internet companies did not generate profits,” Son added.

Investments from SoftBank

SoftBank Vision Fund made several investments this year to expand its portfolio with the addition of companies working on innovative technical solutions. Earlier this year, Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term startup Revolut raised $800 million in a funding round led by SoftBank Vision Fund and Tiger Global Management. Furthermore, the Japanese multinational conglomerate invested in the Digital Currency Group (DCG) recently.

The latest drop in the valuations of technology companies across Asia is hurting Softbank's overall financial numbers.