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March 20, 20 - 6:43 pm - LABS

SoftBank to raise $10 billion for supporting startups reeling from the coronavirus outbreak

Japanese conglomerate SoftBank is reportedly in talks with other investors in order to raise $10 billion to support the startups in its Vision Fund portfolio, given the current economic impacts of the coronavirus crisis. The information is from news media agency Bloomberg.

With over 80 startups in its portfolio, including WeWork and Uber, the investment firm seeks an additional $5 billion from outside investors for this venture to match with its own $5 billion contribution. Sources heard by Bloomberg claim that some of the startups backed by the Vision Fund may not have enough resources to last the next year without a new investment.

Ride-hailing and other services provided by companies in SoftBank’s portfolio are taking a hit from the economic slowdown due to COVID-19. Uber’s stocks have already dropped by more than 50% in the past month.