SoftBank Deals Hit Record Low, Sapping Funding for Startups

SoftBank Group's new startup bets hit a record low last quarter as valuations continued to slide, chilling an already frosty startup winter. From a report: The world's largest tech investor -- which at one point took part in $30 billion worth of financing rounds in more than 90 startups in a single quarter -- participated in just eight investment rounds totaling $2.1 billion in the three months ending in December, data compiled by Bloomberg showed. It was the first time the number of SoftBank's deals fell to single digits since the launch of its Vision Fund. Startup investments by SoftBank's Vision Fund unit came below $350 million in the quarter just ended, a person familiar with the matter said. In total, the segment invested more than $144 billion in five-and-a-half years, which averages out to more than $6 billion per quarter. SoftBank is not alone. Rivals Tiger Global Management, Sequoia Capital and Coatue Management have also tightened their spigots after shouldering big writedowns in 2022. Denied lucrative exits by a rout in tech valuations, deep-pocketed investors have pulled back, hitting pause on billion-dollar funding rounds that had become common in recent years.

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