# SoftBank Vision Fund

SoftBank Vision Fund is a venture capital fund founded in 2017, managed by SoftBank Investment Advisers, with over $100 billion in capital, making it the world's largest technology-focused investment fund.

The SoftBank Vision Fund is a venture capital fund established in May 2017 by the SoftBank Group and the Public Investment Fund (PIF) of Saudi Arabia. Managed by SoftBank Investment Advisers, a subsidiary of the SoftBank Group, it operates as the world's largest technology-focused investment fund, with over $100 billion in initial capital. The fund was created to invest in companies developing technologies aligned with global [artificial intelligence](https://www.wikiprompt.org/wiki/artificial-intelligence) trends across sectors such as finance and transportation. A second vehicle, SoftBank Vision Fund 2, was founded in 2019.

The fund's creation was spearheaded by SoftBank Group founder Masayoshi Son, who articulated an intent to back enterprises driving AI innovation. The project was internally codenamed "Project Crystal Ball." Initial capital was raised with PIF contributing $45 billion, SoftBank $28 billion, Mubadala Investment Company $15 billion, and the remainder from other investors including [Apple](https://www.wikiprompt.org/wiki/apple).

## History

The Vision Fund's early years were marked by significant moves in public equities. In early February 2019, the fund had built a 4.9% position in Nvidia stock but was forced to sell all shares due to a prolonged price decline that threatened overall performance. Over six months, the fund used a collar strategy around its Nvidia holdings, protecting against a drop that began in October 2018 but capping upside. The fund recorded a $3.3 billion return on that investment. The closeout preceded Nvidia's rapid transformation into one of the world's most valuable companies; by June 2024, the market value of those shares had exceeded $150 billion, prompting Son to remark that "the fish that got away was big."

In January 2020, several SoftBank-funded startups, including Getaround, Oyo, Rappi, Katerra, and Zume, began cutting staff. In February 2020, activist hedge fund Elliott Management bought a $2.5 billion stake in SoftBank, pushing for restructuring and transparency regarding the Vision Fund. With many portfolio companies underperforming and high-profile debacles such as the buyout of WeWork after its failed initial public offering, investor confidence fell. In May 2020, SoftBank announced the Vision Fund lost $18 billion, leading to layoffs of 15% of the fund's 500 staff. Consequently, Vision Fund 2 raised less than half of its $108 billion goal, with all funding coming from SoftBank itself after failing to secure external commitments.

In May 2021, SoftBank announced the total fair value of both funds as of 31 March 2021 was $154 billion, with a record profit of $36.99 billion driven by its investment in Coupang. SoftBank then raised Vision Fund 2 to $30 billion, planning continued self-funding. Also in May 2021, Bloomberg reported the Vision Fund could go public through a $300 million SPAC in Amsterdam.

In 2022, the Vision Fund posted a record 3.5 trillion yen loss ($27.4 billion) for the fiscal year ending 31 March 2022 as stock valuations plummeted. Failed investments included Katerra, Wirecard, and Zymergen, drawing criticism for insufficient due diligence. In July 2022, CEO Rajeev Misra announced he would step back from managing Vision Fund 2, with other executives departing that year. In August 2022, the fund announced a $23.1 billion loss for the April-June quarter and planned headcount cuts. Masayoshi Son said he was "embarrassed" and "ashamed" regarding the performance, and media outlets described the fund as a failed experiment and a broken business model.

By early 2023, the fund had invested just $300 million in startups in the October-December quarter, down more than 90% from the previous year. In May 2023, SoftBank disclosed a record $32 billion loss for the fiscal year ending March 2023. In November 2024, Misra formally stepped down, succeeded by Alex Clavel.

## Business Overview

SoftBank Vision Fund is managed by SoftBank Investment Advisers, while Vision Fund 2 is managed by SoftBank Global Advisors, both subsidiaries of the SoftBank Group. The firm's investment team evaluates and selects companies, with investments mostly being venture capital or private equity types. Most investments in Silicon Valley companies exceed $100 million. SoftBank Investment Advisers is headquartered in London, with additional main offices in Silicon Valley and Tokyo, plus offices in Abu Dhabi, Hong Kong, Mumbai, Riyadh, Shanghai, and Singapore.

## Notable Investments

The fund's portfolio has spanned sectors including ride-hailing, real estate, and technology. Notable investments include [Waymo](https://www.wikiprompt.org/wiki/waymo) in autonomous driving, [Figure AI](https://www.wikiprompt.org/wiki/figure-ai) in robotics, and [OpenAI](https://www.wikiprompt.org/wiki/openai) in [generative AI](https://www.wikiprompt.org/wiki/generative-ai). It also backed companies like [Arm Holdings](https://www.wikiprompt.org/wiki/arm-holdings), a chip designer, and various AI-focused startups such as [Inflection AI](https://www.wikiprompt.org/wiki/inflection-ai) and [Sanctuary AI](https://www.wikiprompt.org/wiki/sanctuary-ai). These investments reflect the fund's focus on [machine learning](https://www.wikiprompt.org/wiki/machine-learning) and [deep learning](https://www.wikiprompt.org/wiki/deep-learning) technologies.

## Impact and Criticism

The Vision Fund's scale and strategy have drawn both praise and scrutiny. Its large capital injections reshaped startup funding dynamics, often enabling rapid growth but also leading to overvaluation concerns. Critics have pointed to insufficient due diligence and reliance on the greater fool theory, while supporters note its role in advancing AI infrastructure. The fund's performance volatility, particularly the 2022-2023 losses, has sparked debates about the sustainability of mega-funds in technology investing.

## References

Source facts from Wikipedia (CC BY-SA).

## External Links

Official website.

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Source: https://www.wikiprompt.org/wiki/vision-fund
License: CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/)
Last updated: 2026-10-07T16:36:13.830036+00:00