SoftBank is reportedly looking to raise $10 billion to support startups reeling from the coronavirus outbreak - and some might not have enough cash to survive more than a year
- SoftBank aims to raise $10 billion for its Vision Fund to help its portfolio of companies reeling from the coronavirus outbreak, according to Bloomberg.
- The Japanese conglomerate is reportedly seeking $5 billion from outside investors, which it will match with its own $5 billion.
- SoftBank's vision fund, which has bet on 88 companies including WeWork, Uber, and DoorDash, reportedly anticipates that some startups in its portfolio may not have enough cash to make it through the end of the year.
- Visit Business Insider's homepage for more stories.
SoftBank is reportedly in talks with outside investors as it seeks to raise an additional $10 billion to bolster its Vision Fund portfolio amid the dire economic impacts of the coronavirus outbreak, Bloomberg first reported.
The Japanese conglomerate's massive Vision Fund has poured billions into over 80 startups, including WeWork and Uber. Companies in its portfolio are already taking a hit from the impacts of the economic downturn stemming from COVID-19 - Uber's shares have fallen by more than 50 percent in the past month alone.
SoftBank is reportedly seeking an additional $5 billion from outside investors for its Vision Fund, which it would match with its own $5 billion contribution.
The Vision Fund had spent $80.5 billion of its $98.6 billion total by the end of 2019, according to SEC filings.
Citing unnamed people with knowledge of the matter, Bloomberg reports that some of the companies backed by the Vision Fund may not have enough cash to make it through the coming year without a new investment.
A representative for SoftBank declined to comment.
