SoftBank Ventures Asia’s divestment signals heightened focus on late-stage firms

The Edgeof, a new company founded by Taizo Son and Atsushi Taira, has acquired SoftBank Ventures Asia, an early-stage VC unit of SoftBank Group.

Taizo is the youngest brother of Masayoshi Son, the founder and CEO of SoftBank. The deal was announced on Wednesday but the price and terms were not revealed.

According to a PitchBook report, the sale is likely part of SoftBank Group’s strategy to focus more on later-stage investments. The Japanese tech giant has faced huge losses in its Vision Fund investments in the past few years, especially in companies that were affected by the market downturn and the pandemic.

The exit of Anna Lo, director of SoftBank Investment Advisors, also strengthens the case for SoftBank’s shift in focus. Lo was behind the Bodhi Fund, an investment vehicle for early-stage deals in Southeast Asia, India, and China.

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In SoftBank’s latest earnings call, board director Yoshimitsu Goto reiterated the company’s commitment to boost investment activity as soon as a “clear sign” of recovery hits.

“Of course, if we can make an investment at the very bottom, that is most profitable,” he added. The elder Son was not present in the call.

The firm has also improved its liquidity and reduced its debt by selling some of its stakes in Alibaba, T-Mobile, and Arm.

However, Gulzhan Musaeva, an analyst that contributes to Seeking Alpha, noted that expectations for SoftBank and its Vision Funds are still negative for the foreseeable future, citing a slowdown in public and private investments.