“If I start a fund, it will shake up the whole world of technology,” Son Masayoshi, head of the Softbank Group, said during a trip to the Middle East four years ago. They were preparing a new investment fund against Silicon Valley Venture Capitalists. Eventually, Rs. 7.23 lakh crore has been paid. He bought stakes in some of the world’s top companies, including Baitdance, Uber. Despite the rise in technology stocks, their investments have not yielded good results. Yet the Vision Fund has ushered in a new era in which American capital and new companies do not dominate.
For decades, San Francisco Venture Capital Fund has been investing in potential startups. The Vision Fund applied another rule. He pulled Venture Capital out of California’s dominance. Its main investor was the Sovereign Wealth Fund of Saudi Arabia. Vision Fund has invested in 92 companies. Some of which compete with each other. The Vision Fund has so far raised Rs 58,656 crore by investing Rs 6.5 lakh crore.
Son’s optimism about technology is true, but his fund lags far behind the Nasdaq Tech Index. Which has increased by 99% since May 2017. His poor performance shows flaws in his strategy. Starting from ride sharing to investing in food delivery companies increased their value and encouraged entrepreneurs to fight a damaging war. However, Vision Fund has lost Rs 1.6 lakh crore till June this year due to mis-investment.
The technology industry is now moving in another direction. Companies are put in public so that they can raise capital through various sources. They are controlled by institutional investors. More than half of the top 30 Unicorns, including Ant Group and RBAB, are or will be listed. Son’s Vision Fund will benefit, as their companies will jump into the stock markets with higher prices.
Put in front of Globe Vision
The Vision Fund has made a fresh start. 82% of venture capital deals in the U.S. this year involve unconventional investors, including sovereign wealth funds and companies. The Vision Fund has presented a global perspective by investing heavily in India, Southeast Asia and China. He pointed out that the future of technology is in Asia as well as in America.
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