Startups Weekly: SoftBank is screwing up
Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I wrote about All Raise’s expansion, Uber the TV show and the unicorn from down under.
The SoftBank saga
According to a new report from The Wall Street Journal, SoftBank plans to take a more conservative approach as it begins deploying capital from Vision Fund II. Why? The Japanese mega-fund’s track record is less than stellar. Not only has it lost billions on WeWork, but several of its other portfolio companies are suffering through layoffs, mismanagement and more.
Fair.com, a startup building a flexible car ownership business that is valued at $1.2 billion — backed by some $500 million in equity from SoftBank and others, plus billions more dollars in debt funding — said this week that it will be laying off 40% of its staff. On top of this, it’s removing its CFO, Tyler Painter, the brother of the CEO