Softbank Will Loan $ 20 billion to Employees to Invest in Vision Two Fund

August 17, 2019 | Venture Capital

Investors aren’t lining up for a second Vision Fund. Time for another strategy.

Softbank CEO Masayoshi Son plans to loan money to employees to invest in the firm’s second mega-Vision Fund. The plan aims to garner subscription of as much as 20% of the $ 108 billion targeted raise.

This decision marks a highly unusual move by Son, who may supply up to half of the employee contributions.

It’s worth noting, however, that this isn’t a first at the company. During the launch of the original Vision Fund employees could receive loans to subscribe up to $ 8 billion. The original fund’s target was $100 billion.

Big names in Vision Fund Two

Apart from Softbank itself subscribing to $38 billion, big-name investors include Apple, Microsoft, Foxconn Technology, and the sovereign wealth fund of Kazakhstan.

But would employees be making money?

Softbank CEO Masayoshi Son Looks for Bigger Gains

Softbank’s Vision Fund One was supposed to turn out a multi-bagger. That may still prove true, but on current reckoning, the fund is likely to lose money on two of its bigger investments – Uber, and WeWork.

With looming warnings of an impending recession, start-ups may not produce the stellar returns many of them have provided so far.

The original Vision Fund holds 81 investments worth about $66.3 billion, according to a June company estimate. SoftBank disclosed two months ago that total returns register at 62%.

Softbank CEO Masayoshi Son is Japan’s second-wealthiest person. Son has a net worth of $16.9 billion.

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