SoftBank loses £25bn of tech fund

Japanese multinational conglomerate, SoftBank, has reported a record loss of £25.4bn ($32bn) for its Vision Fund, which has invested in a number of major UK tech firms. SoftBank’s investment portfolio includes companies such as Revolut, Improbable, and OneWeb. The report blames rising geopolitical tensions, including the war in Ukraine and tensions between the US and China, for the disappointing performance of its tech investments.

SoftBank’s CFO, Yoshimitsu Goto, highlighted concerns over geopolitical risks, saying that “just because the last three months were good, we can’t go back to resuming investments”. Many UK tech firms faced a difficult period in 2022, with operational costs soaring. SoftBank-backed Gousto, a recipe box subscription startup, had to cut its valuation from £1.4bn to £250m last February.

Revolut, another major UK tech firm backed by SoftBank, also experienced a drop in value this year, as key investor Schroeder lowered its internal value of its stake in the company. Revolut’s valuation dropped almost by half from $33bn to $17.7bn.

In the meantime, SoftBank’s CEO, Masayoshi Son, has shifted his focus towards the upcoming IPO of Cambridge-based semiconductor company, Arm. The company is set to go public in New York following an application made this month.

Despite its losses, SoftBank has remained confident in the long-term success of its investments and plans to continue pursuing high-growth opportunities in the technology sector.