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Investing in startups is tough! SoftBank records biggest loss in 39 years, Jack Ma announces departure from SoftBank's board

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Investing in startups is tough! SoftBank records biggest loss in 39 years, Jack Ma announces departure from SoftBank

SoftBank's technology investment fund VISION FUND, which is said to have over $100 billion in funds, has been in a tough situation since the failed investment in WeWork. According to SoftBank's founder Masayoshi Son, out of the 88 startups that the fund has invested in, 15 of them may go bankrupt.

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Softbank's technology investment fund VISION FUND, which is claimed to have over $100 billion in funds, has been facing difficulties since its failed investment in WeWork. According to Softbank's founder Masayoshi Son as mentioned in an interview, out of the 88 startups invested by the fund, 15 may face closure.

As reported by Bloomberg, Softbank announced today (18th) that the VISION FUND incurred a loss of $17.7 billion in the last fiscal year. Combining this with the overall group loss, it marks the most severe loss in 39 years. It is reported that the VISION FUND invested $75 billion in 88 startups, with the investment value reduced to $69.6 billion by the end of March this year, due to losses from previous investments in WeWork and Uber, resulting in significant losses for the VISION FUND.

In addition, Alibaba's founder Jack Ma announced his resignation from the Softbank board, and Softbank has nominated external directors such as Chen Liwu, founder of the electronic design automation (EDA) giant Cadence. According to CNBC, this move is in response to the investment firm Elliott Management's demand for diversity on the Softbank board, which is expected to be confirmed at the shareholders' meeting in June.

Elliott Management has also been questioning Jack Dorsey's distraction due to his dual role as CEO of Square and demanding Twitter to replace him. It was also reported yesterday that Paul Singer's company, known for emphasizing gold as a hedge, has recently become more prominent.

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