SoftBank commits $40 billion to second Vision Fund

SoftBank’s second fund has already secured funding from Standard Chartered Plc and Goldman Sachs Group Inc.

According to a report from the Wall Street Journal, Japan’s SoftBank Group Corp will invest $40 billion in its second Vision Fund. SoftBank’s board will meet on Thursday to approve the commitment.

SoftBank’s first, $100 billion Vision Fund was backed by sovereign wealth funds from Saudi Arabia and Abu Dhabi. SoftBank has now pledged to launch its second Vision Fund, without such support, as it markets the fund to potential investors. This second fund has secured investment from Standard Chartered Plc and Goldman Sachs Group Inc.

According to the WSJ report, Kazakhstan’s sovereign wealth fund will be investing in the second Vision Fund.

Standard Chartered, SoftBank, and Goldman Sachs declined requests for comments.

Since the launch of SoftBank’s first Vision Fund, its biggest outside investor, Saudi Arabia’s Public Investment Fund (PIF), has been pulled further into domestic projects since the Saudi government runs a himalayan deficit, which has potentially limited its overseas ambitions.

According to a source familiar with the matter at hand, although PIF is among existing investors in talks with SoftBank for investing in its second Vision Fund, investment decisions will be made only after assessing a formal proposal.

Since its launch two years ago, the first Vision Fund burned though much of its cash with investments in more than 80 late stage tech startups; the fund’s manager is ramping up its staff numbers as it looks to manage the transition to the launch of the second fund.

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