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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
More pain ahead for unicorns, especially those birthed by the Japanese conglomerate and its Vision Fund.
Editor's note: SoftBank’s Vision Fund is the bellwether of optimism, grounded in the belief that technology-enabled businesses will change the world for the better and the fund will profit from it. It also serves as a sort of benchmark for venture capital firms. I know this because several venture investors like to boast about this. I’m afraid the latest on this investment thesis is that SoftBank has been humbled. A couple of weeks ago, the Vision Fund posted a $7.2 billion loss in the July-September quarter. Meanwhile, Masayoshi Son, SoftBank’s charismatic founder, said he was stepping back from running day-to-day operations at the fund “for the next few years” to focus on UK-based semiconductor company Arm. The fund’s losses have been a matter of concern for some time now. For the year ended 31 March 2022, the fund reported a record $20.5 billion loss. Son had said at the time that the firm would go slow on new investments, cutting them by almost half. Sure, some companies will get good follow-on money, but I doubt it is going to rain funds like …
The Abu Dhabi investment firm just upped the AI stakes, private debt in the Gulf is having its moment in the sun, and other updates from this week.
The regional economy is expected to take a big hit in 2026, venture capital activity is starting to show signs of strain, and Saudi Arabia’s sovereign fund has a new investment strategy.
The country’s top VC funds are flush with new fundraises. They must now find opportunities to invest, but that’s easier said than done.
