SoftBank Vision Fund’s top US exec to leave amid ‘issues’ at tech firm

The managing partner for US investments at SoftBank’s US$100 billion Vision Fund, Michael Ronen, said he is leaving amid “issues” at the company.

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Ronen told the Financial Times that he had been “negotiating the terms of my anticipated departure” during the past several weeks. He joined SoftBank in 2017 to lead its investments into transportation and logistics startups, such as Getaround.

In addition, SoftBank vice chairman Ron Fisher is also in discussions about his future in the company, the report said, citing three people familiar with the matter.

Fisher is one of the leading advocates of the company’s huge bets in US-based co-working startup WeWork. SoftBank told the Financial Times that Fisher was “a valued member of the SoftBank family” and was “not going anywhere.”

The development comes as the company suffers a string of investment woes, including WeWork’s unsuccessful attempt at an initial public offering amid negative investor feedback. While founder Masayoshi Son signed off on his company’s investments into the startup, it was Fisher who sat on WeWork’s board. There, he worked closely with the management team on its strategy and growth plans, sources said.

Late last year, after shelving its plans to go public, the cash-strapped startup accepted a US$9.5 billion rescue package put together by SoftBank. This included US$5 billion in new financing, a US$3 billion tender offer for existing shareholders, and the Japanese company’s previous US$1.5 billion commitment.

However, in December 2019, SoftBank’s US$3 billion financing talks for WeWork were reportedly stalled amid investor concerns about the possible risks of rescuing the co-working operator.

SoftBank itself, which is looking to attract investors for its second mega fund, has also been struggling to raise cash.

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The conglomerate announced in July last year that it plans to establish SoftBank Vision Fund 2 to accelerate the growth of AI tech. It said the total expected capital for the fund has reached about US$108 billion after landing potential investors such as Apple, Foxconn, Microsoft, and the National Investment Corporation of the National Bank of Kazakhstan.

In November 2019, Bloomberg reported that the company completed an initial raise of just US$2 billion for Vision Fund 2. Sources also said that Son received suggestions to delay the launch of the fund and that its starting size could be far smaller than its massive target.