SoftBank keeps walking away from startup investments
This morning Dan. premark revealed that sources have been telling telling him that Softbank's Vision Fund has actually walked away from several investments in startups over recent weeks these startups had all received term. I'm she tes already. From South Bank to the tune of hundreds of millions of dollars Softbank had delayed some funding around concentrations. Recently after the whole we work turmoil but reportedly Softbank had told the companies involved that the closing delays would only be temporary. Apparently that turned out not to be true to say. It's highly unusual for an investor to ghost after delivering a term. Sheet would be putting it. Mildly here are just two examples quoting Dan. Honor is a San Francisco homecare company for older adults. That's raised over one hundred million dollars from firms. Like Andriessen Horowitz. NASCAR's and thrive capital. It received a term sheet from Softbank in mid-november with subsequent reports putting the deal size at around one hundred fifty million dollars Softbank CEO Masayoshi sewn gave his blessing during a meeting at his woodside. California state with honor. Co Seth Sternberg per a source familiar. Softbank kept saying it had to run some process stuff before getting the term sheet fully signed nine but said they wanted to get it funded by year end. So it started confirmatory due-diligence law firms background checks iwo going through stuff etc.. There was no reason to think there was going going to be a problem and quote. Softbank Killed The deal one week before Christmas telling honor that son had changed his mind. Sawn did not personally communicate his decision. Decision or rationale to the company and quote and Creator is a San Francisco based developer of hamburger making robots whose backers include Google ventures as an KHOSLA ventures. Softbank signed the company to an exclusive six-month term sheet for a round that was many multiples of the twenty five million dollars in it raised to date quote. Totally screwed screwed is how one source close to Creator refers to what happened next like with the other examples it was unexplained delay after unexplained delay and at one point said it wanted wanted to add a co lead investor. The company pushed back and Softbank agreed to wire between ten million and fifteen million dollars a show of good faith but the hurry up and wait persisted with multiple sources telling me last month that the original deal was dead. Things may have since changed however as a source close to Softbank says negotiations remain remain active and quote.