Tokyo-based Global tech investment firm SoftBank reported a record quarterly loss of more than $23 billion, due largely to losses in its Vision Fund segment, the startup investment arm. The results for the three months through June brought a mea culpa from CEO Masayoshi Son, who sprinkled unprecedented levels of funding on startups worldwide over the past half-decade, particularly just as prices crested last year. Vision Fund saw more than $50 billion of gains erased from its peak.
It was the second quarter of enormous losses for the company, staggered by broad weakness in global stocks, causing paper losses in the company’s portfolio of publicly traded tech giants as well as markdowns on its holdings in hundreds of unlisted companies.
“When we were turning out big profits, I became somewhat delirious, and looking back at myself now, I am quite embarrassed and remorseful,” Son said at a news conference Monday. SoftBank‘s losses were spread across its vast portfolio.
The stock downturn of recent months has inflicted particular pain on unprofitable tech companies with fast revenue growth. Tiger Global Management informed investors that its flagship hedge fund was down 50% in the year’s first half, while Cathie Wood’s Ark Innovation ETF was down more than 57% over the same period.