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SoftBank To Lend Workers Almost $20 Billion For Fund

SoftBank Group Corp. is aiming to lend almost $20 Billion to its workers to purchase shares in its 2nd venture capital fund after the achievement of the previous $100 Billion funds to pump in tech startups, the media reported.

The 2nd Vision Fund plans to lift $108 Billion, SoftBank claimed previously. Apart from its workers, it is also anticipated to gather money from Microsoft Corp., Apple Inc., Kazakhstan’s sovereign wealth fund, and Foxconn Technology Group. It has also won support from Japanese financial agencies, with 7 recognized as inking MoU to take part.

Masayoshi Son (Chief Executive Officer and Founder) might add up for 50% of the employee investment fund, as per media, mentioning people well aware with the subject. An external spokeswoman for SoftBank, Emily Claffey, did not answer to questions on loans to workers for the fund.

Son has a net income of $16.9 Billion, making him second-richest individual in Japan, as per media. SoftBank also claimed previously that it is locking $38 Billion in the capital.

Previously this month, SoftBank locked Q1 profit that surpassed the highest analyst prediction with capitalization gains from investments by Vision Fund such as Slack Technologies Inc., food-delivery app DoorDash Inc., and hotel chain OYO Rooms. The gains were counterbalanced by a 195.3 billion yen ($1.8 Billion) drop in the fair value of holdings comprising Uber Technologies Inc.

On a related note, SoftBank has not been shy about its interest in smart vehicles, and it is taking that fascination to a new height. The firm’s Vision Fund earlier claimed that it is pumping in $2.25 Billion in Cruise (GM’s self-driving car unit). The cash addition will begin with $900 Million the moment the deal closes and will end with $1.35 Billion as soon as the fully driverless Cruise AV vehicle is all set to roll out. The decision will offer the Vision Fund a 19.6% share in Cruise.

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