.png?width=1392&height=242&name=CREtech%20New%20York%20Logo%20with%20Dates%20(1).png)
WeWork Isn’t the Only Stumble for SoftBank’s Vision Fund
SoftBank Group Corp.’s longtime strategy of dumping mountains of cash on promising young companies to create big winners failed dramatically at WeWork, and is showing cracks at a number of its other investments. SoftBank’s nearly $100 billion Vision Fund gave companies like dog-walking app Wag and indoor farm Plenty more cash than they wanted, but the investments failed to ignite growth. After a sizable bet on online car-lessor Fair, that company is struggling to stay afloat. Wag is for sale, people with knowledge of the companies say.
Dozens of other firms, such as Chinese ride-hailing giant Didi Chuxing and South Korean e-commerce company Coupang, are in industries known for burning cash and with uncertain paths to profitability. The Wall Street Journal reported that Didi—the Vision Fund’s biggest investment at $11.8 billion—was seeking more cash this summer, months after a company executive said it was losing money on every fare booked. Coupang, in which the Vision Fund has invested $2.7 billion, said that last year its operating loss grew faster than its revenue.
