SoftBank to commit $40 billion to second Vision Fund


Arguably one of the most influential investment firms out there right now one of the most influential funds is softbank's right vision fun well they got another one coming yeah this one isn't enough one one one hundred billion dollar fund isn't enough Ellen Hewitt is started reporter for Bloomberg she joins us for our nine sixty studio out gives me in San Francisco so Ellen bring us up to date what's going on with masa and the gang well there's a lot of anticipation in advance of what could be and what our reporting suggests there may be an announcement of a launch of a second vision fund as soon as this week and as you mentioned yeah this would be a follow up to an absolutely enormous hundred billion dollar original vision vision fund which has completely reshaped the way that mentor capital has worked in Silicon Valley and around the world in the last couple years and some details we don't know you know we don't know exactly the size of this potential vision plan to but it does seem like we may be getting is about it soon that's the latest reporting alright just quickly whenever you headline crossing the Bloomberg terminal president trump suing to block the house from getting his state tax returns that's following some action here in the New York State Legislature black that opened up the possibility for that president trump suing to block the house of representatives the US house of representatives from getting the New York state tax returns what more on that as we go along so Ellen let's talk about this because I mean the first find talk to us about the types of investments are they're the kind of money that's often can actually make in a company and what kind of returns how do we know about it that gives it kind of leverage to start a second fund yeah so the first vision fund has been a massive deployer venture capital completely reshape being some of the valuation so we've been Sam in the valley some of its biggest investments include uber which not public and we work in which it has put more than ten billion dollars I believe a serious financial forms over the last two years ash they started investing and we work in twenty seventeen so single handedly the vision fund and other softbank capital can change the valuation of up to the company that they've decided to sort of make as the king of a particular industry so their strategy tends to be to look at an industry say food delivery and decide okay we want to make one of these companies really equipped to wipe out all the other ones and we're going to give them hundreds of millions of dollars if not billions and that is going to be their strategy to proceed forward it's often about growth growth growth in food delivery for example they have put a bunch of money behind door dash and you've seen in the last year during rush is actually moved up the ranks in prevalence of food delivery and and often outstripping other competitors such as post mates that's based on data that you can see from credit card transactions so it yeah they just they tend to exert a heavy hand well and it's interesting to as you point out I mean they they play the role of kingmaker not only owing to size but brand obviously so well known Masayoshi son I mean one of the things that's interesting here too is who's underneath it who's contributing here and you've got some of the names that were in before and presumably are coming back again tell us about that absolutely their biggest backer single backer for the first vision fun was the Saudi sovereign wealth fund put in something like forty five billion dollars it seems like that is anticipated to maybe be a major investor in the second vision fund along with the sovereign wealth fund Abu Dhabi is a big players who are very interested in getting access to some of the returns the division fund has already shown you know we reported that in June the the first vision fund you know my sushi son had already said that the returns are somewhere in the sixty percent range not even having to put all of the capital in the hundred billion dollar somewhere in the they've deployed something like sixty four billion dollars and today they're using that momentum you know it seems like they're using that momentum to then go out and maybe officially start fundraising for a second yeah makes it easier right when you can show this return I do wonder about though the ability for Masayoshi son with the vision find to kind of squeeze out other smaller tech investors because his ability to put so much money behind a company does you know drive up their valuations really has kind of upended the I feel like the investment space and so in the venture space yeah and it we've seen a fax you know we're companies talk about like you know masa comes in and says I would like to give you or you know invest I'd like to buy a four hundred million dollars worth of equity and maybe the company was only looking for half that but the check often comes with a take it or leave it sense so so you see start ups who are maybe not even looking to grow quite as quickly don't must have known for having this incredibly ambitious vision on how quickly companies can grow this is something that that we work COS talked about you know he would lay out his vision of mosses okay dream ten times bigger and and and you can see that a factor also softbank would often come in and write checks that were even larger than the companies had been anticipating raising hi and then yes it has effects on valuations while so many many other pieces have of like discussed maybe not openly but behind doors about the topic of fact evaluations going up there not being any space left in the round so they wanted to invest in it's just when you have something that's maybe an order of magnitude bigger than other funds you're gonna see effects that are are throwing the regular bounce out of whack Ellen Hugh it is started reporter for Bloomberg she joined us from our Bloomberg nine sixty studio and services go talking softbank police to announce a new technology vision find it's second that first one hundred billion dollars and is Alan really nicely laid out really up ending just the way the the investment yeah works in Silicon Valley and beyond a king maker for sure Wilson remember you put at twenty million into Ali Baba and last month the company recorded an eleven billion dollar profit from selling just part of the stakes so yeah those are some

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