Softbank and Vision Fund
What is your opinions about this VC-Telecom-Hedge Fund business? Read about it, seems like a cool business with versetile functions.
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They don't know what they're doing, made many failed bets, and have more capital than sense. They have funding from unsophisticated sources like the Saudi PIF. Would avoid if you want to be a tech/VC investor
Truly saying, while reading about its bets on different firms it looked like a company plays a very risky game. Some bets went succesful (Alibaba) but some don't (Wirecard, Greensill). It seems like their strategy is to do 10 risky bets and hoping that 1 of these bets will off-set and cover losses made by other ones.
Aka it's venture capital but for bigger businesses because companies are staying private longer /thread
the idea that the saudi pif is unsophisticated is funny/wrong
Completely wrong. They are the most important and influential tech investor in the game by virtue of their size, and on balance have been very successful thus far. Of course they’ve had many failed bets, often high profile - that’s part of the VC business model. If you want to avoid them because you personally disagree with their investing style, that’s one thing, but make no mistake, they are a market moving fund that could have a role in shaping the sector for years to come. Fundraising is highly competitive and there is a reason they’ve taken in billions from allocators and large tech corporations. Also, this idea that the Saudi and other SWFs are unsophisticated is also hilariously wrong.
They have more failed bets than the typical VC model, is my point. I am not obtuse to not know the risk/reward dynamic of VC as I take part myself. We are in the biggest bull market for tech in history so the returns from SoftBank is laughable on a relative basis.
They are market mover due to their size, given they aggressively sought for unnecessary AUM. There are many more VC funds that could have easily raised just as much but choose not to. Important to not confuse scale like Vanguard vs quality investors like the Tiger Cubs or MM firms. There are great people working for PIF no doubt, but the political interference of MBS and their limited track record makes them sub-par at best.
Personally would take Insight / GA / TA / Tiger / a16z over Softbank by a mile.
You’re lucky to have offers from any of these places though.
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