SoftBank shares fell after its Vision Fund tech investment unit posted a record $32 billion loss


SoftBank’s Vision Fund posted a record loss for the year ended March 31, 2023. The major tech investment entity has been hit by the falling prices of tech stocks.

Akio Kon | Bloomberg | Getty Images

Japanese tech investor shares softbank Shares fell on Friday after the company reported a record loss in its Vision Fund tech investment unit.

SoftBank shares closed down 3.68% in Tokyo.

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The company said on Thursday that its Vision fund segment posted a record loss of JPY 4.3 trillion ($32 billion) for its fiscal year ending March 31.

It reported a loss on investments in its Vision Fund of 5.28 trillion Japanese yen.

The $100 billion Vision Fund was launched in 2017 under the leadership of SoftBank founder Masayoshi Son. shook up the world of tech investing,

It invested in some of the world’s most high-profile tech firms, but some of those stakes, like at WeWorkIt turned sour.

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Vision Fund, which also has exposure to Chinese tech firms, has also faced Beijing’s crackdown on the domestic tech sector and the subsequent fall in share prices. SoftBank said on Thursday it has booked a loss on its investment in Chinese artificial intelligence company SenseTime.

and while there has been a recovery in the tech-heavy nasdaq In the US this year to date, compared to SoftBank’s fiscal year – which ended March 31 – the index is still lower. Tech stocks have been hit hard by rising interest rates around the world, which have forced investors to move out of riskier assets like high-growth equities.

SoftBank is selling its stake to weather the storm alibabaThe Chinese e-commerce giant that made Son and SoftBank their fortunes, as well as the US ride-hailing company Uber,

SoftBank’s management pledged a year ago to go into “defense” mode and be more disciplined in its investment strategy. Investment has slowed down in recent months.

But the company is now looking to the next investment opportunity: artificial intelligence.

“AI is finally here,” Yoshimitsu Goto, SoftBank’s chief financial officer, told a news conference on Thursday.

Goto questioned whether SoftBank should now go into “offense” mode.

SoftBank's Vision Funds lose $39 billion

“With those positions should we stick to defense only or should we balance that with offense?” Goto asked.

SoftBank is also gearing up for an initial public offering of Arm, the British chipmaker it acquired in 2016. Arm has filed confidentially in the US for the listing. Goto said the IPO process was “going smoothly.”

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