SoftBank mulls Vision Fund 3

SoftBank Group may launch a third startup fund with its own cash after the poor show of its previous two, the Wall Street Journal reported, citing sources.

Alternatively, the Japan-based investment firm may look to pool more resources into Vision Fund 2, currently its main fund. A decision on the matter will be made within the following months, the sources said.

The development comes close on the heels of SoftBank Group’s plans to slash at least 20% of the headcount at its Vision Fund unit.

Vision Fund 2, which saw an investment of US$49 billion, is currently worth less than the money that was put into it – SoftBank recorded losses of US$23 billion in the second quarter of this year.

Vision Fund 1, the first iteration, comprised US$100 billion, but investments in co-working firm WeWork and sinking ride-hailing provider DiDi Global ate into profits.

Masayoshi Son, SoftBank’s CEO and 25% stakeholder, helped put up US$2.6 billion for the second fund and currently owes US$2.1 billion to the company.

See also: Exclusive: Indonesia’s eFishery nets $90m series C from Temasek, SoftBank, Sequoia