Equity How to lose money, SoftBank edition
Aug 8, 2022
Stocks and cryptocurrencies are on the rise, making many listeners wealthier. Palantir faces a steep drop due to disappointing future guidance, while SoftBank reports staggering losses tied to its Vision Fund. Startup founders struggle with accepting lower valuations amid market pressures. In exciting tech news, Baidu launches self-driving taxis in China, Lyft is venturing into media, and India is tightening its grip on Chinese smartphone imports. A significant $8.4 billion acquisition of Avalara by Vista Equity Partners also makes headlines!
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Guidance Over Growth
- Good quarterly results aren't enough to maintain high valuations in the current market.
- Guidance is now the key metric for money-losing, growth-focused tech companies.
SoftBank's Vision Fund Losses
- SoftBank's Vision Funds reported a massive $21.7 billion loss in Q2 2022.
- Investments in companies like Coupang, SenseTime, and WeWork contributed to these losses.
Unicorn Valuation Resistance
- Masayoshi Son believes the downturn for unlisted companies might last longer than anticipated.
- Some unicorn founders are hesitant to accept lower valuations in new funding rounds.