SoftBank to more than halve investment in startups this year – TechCrunch

SoftBank, which invested more than $46 billion in startups in the previous fiscal year, could cut the amount of investment to half or even a quarter of this year’s, chief executive Masayoshi said Thursday. His on the earnings call, the latest high-profile investor to turn vocally cautious. on the opportunities in the private markets in the context of a global slowdown.

The move follows a year of dismal performance for the Japanese conglomerate, which reported a loss of around $29 billion on investments in its Vision Fund 1 and Vision Fund 2 for the year ending March 31.

“It depends on our LTV levels and investment opportunities, and we find a balance, but I will say that compared to last year, the amount of new investments will be half or could be as small as a quarter. “Son said, according to a company. translator.

SoftBank joins a list of a number of investors, including Tiger Global, Coatue and Dragoneer, who have slowed the pace of their investments — as well as the amount of capital they have poured — into startups this year.

In the quarter ending March this year, SoftBank said it invested $2.5 billion, considerably less than the $10.4 billion, $12.8 billion, $20.9 billion and $11.3 billion that it had deployed in previous quarters.