First some notes on SoftBank’s rumored enlargement into China and its bizarre fund math, then Foxconn, after which fast notes on tech despair, Huawei, and extra.
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SoftBank has fund visions (and a Vision Fund) for China? That, and extra money
Kane Wu at Reuters reported over evening that SoftBank is seeking to open an workplace and rent an funding workforce in China, which Wu says will probably be based mostly in Shanghai. That’s following the fund’s latest international enlargement with new focused places of work in Saudi Arabia and India.
When I noticed this, I form of did a double-take: SoftBank doesn’t have a presence in China? The fund has reportedly been in search of investments in a few of China’s main unicorn stars, together with controversial face recognition startup SenseTime, and main edtech startup Zuoyebang (作业帮, which accurately interprets as “school assignment help”). (Hat tricks to Selina Wang at Bloomberg, who appears to only be sitting in Vision Fund companion conferences). And in fact, it dumped a fairly penny into WeWork China, the place it was a part of a $500 million syndicate, and is a big investor in Didi.
It’s form of apparent that SoftBank would broaden to China. What will probably be attention-grabbing although is to see how the fund buildings itself long-term. As far as I do know, the Vision Fund is a singular “fund” that invests worldwide (ship me an e mail if I’m incorrect on this depend). China has a thicket of laws on funds and firms, which is one in all a number of causes we see particularly China-focused automobiles (corresponding to Lightspeed and Lightspeed China or Sequoia and Sequoia China). If the Vision Fund continues to be a unified fund, that may be a notable technique shift that is perhaps cloned by different trans-Pacific funds.
Aside: SoftBank Vision Fund math is difficult
When it first closed the Vision Fund, SoftBank defined they’d raised simply over $93 billion in dedicated capital or, extra exactly, round $93.15-$93.2 billion based on the preliminary investor shows and its annual Form D filings. In these docs, SoftBank stated that the fund was financed with $28 billion from SoftBank and $65 billion from third-party buyers.
On prime of the $93 billion raised…