WeWork’s subsequent nosedive is costing SoftBank more than the estimated $11.5 billion in equity losses and another $2.2 billion in debt still on the line. “Before WeWork, the perception was that SoftBank was an incredibly careful, clever, visionary organization under Son,” he said. “I fell in love with WeWork,” Son told shareholders in June, adding that some on his board warned him his faith was misguided. The mounting losses prompted Son to all but halt investment activity last year, cut Vision Fund jobs and adopt stricter due diligence. But venture capital is supposed to consist of small bets, and the Vision Fund was “SoftBank on steroids,” said Damodaran.

Source: Hindustan Times November 08, 2023 16:36 UTC