Vision Fund or Illusion Fund?

What is the fun of money if not to be spent madly, especially under the name of “innovation, technology & future”? That is probably the precise vision for Softbank’s tycoon Masayoshi Son, aka the so-called “Vision Fund”.

Today this largest technology fund in the world has lavished at least USD 40 billion in 28 companies, most notably in those super unicorns, according to Recode.

 

The latest news told Softbank is going to up the ante for the stake control in WeWork again. To do this, it already found a perfect ally: Saudi which has also been building its wildest tech dream.

 

Not everyone is happy or content with Vision Fund’s brute force. Critics said huge bets will very likely result in huge blunders. Vision Fund’s extravagant style does not seem to abide by the basic & fundamental rules of investment.  Some unicorns like Wework is far from making any money so far, however, Vision Fund still overindulges them with tons of cash in a “devil may care” attitude (often offering the money round on the deal table much more than the startups are seeking),  eventually may incentivize them on the path of reckless expansion. In addition, Vision Fund sheer monetary power could force out many small VC investors, seize the crown seat for monopoly, and maybe create unnecessary high valuation and frothy bubble for the tech sector.

So is Vision fund truly visionary or tinged with an illusionary iridescence?

By: Cecilia Wu