How SoftBank rode its multibillion-dollar bets through extreme highs and lows

Masayoshi Son shocked the world in 2016 when he announced that SoftBank Group would be raising US$100 billion to back global tech companies. “Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector,” he said.

The fund set off to do what it intended to accomplish – invest in promising companies with multibillion-dollar bets. In less than two years, it had deployed 70% of its total capital.

Some of these bets paid off, while others left much to be desired. Here’s a timeline of what happened.

Eagle eye

January 2017: SoftBank was mulling a US$1 billion investment into WeWork from what would be its US$100 billion Vision Fund. The Japanese conglomerate was also said to be considering backing ride-hailing major Uber.

May 2017: The company announced the first close of its mega tech fund with US$93 billion in confirmed commitments, making it the largest tech-focused investment fund ever raised. The company had already negotiated roughly a dozen deals for the Vision Fund at the time, including a US$1.4 billion injection into Paytm.

SoftBank itself committed US$28 billion to the fund, with companies such as Apple, Foxconn, Qualcomm, Sharp, and the United Arab Emirate’s Mubadala pitching in as well. One of the fund’s most notable backers was Saudi Arabian sovereign fund PIF, which contributed a hefty US$45 billion.

At the end of the month, SoftBank shares soared to 4,497.5 yen (US$42.07), after closing at 3,931 yen (US$36.77) in late March.

August 2017: WeWork formally announced SoftBank’s US$4.4 billion investment in the company. About US$3 billion went to WeWork’s parent firm and US$1.4 billion to WeWork China, WeWork Japan, and WeWork Pacific.

The co-working startup did not disclose its valuation after the deal, but a source familiar with the matter told Forbes that the startup was valued in the “high teens” of billions.

January 2018: Uber said that SoftBank’s US$1.2 billion investment deal had officially closed. The agreement came together a month prior, when a SoftBank-led consortium made a tender offer that valued Uber at US$48 billion, a steep discount from its most recent valuation of US$68 billion at the time.

SoftBank then continued to make big bets for the rest of the year.

Its Vision Fund led roughly 35 investment rounds, including those of Chinese healthtech firm Ping An, Indian online grocer Grofers, and TikTok owner ByteDance.

The company also topped up investments into some of its existing portfolio companies such as Tokopedia, Oyo, and Grab.

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