SoftBank Vision Fund: A Comprehensive Overview

Executive Summary

The SoftBank Vision Fund, founded in 2017 by Masayoshi Son, is one of the world’s largest technology investment funds. With $166 billion in assets under management as of 2025, it has invested in 332 companies across AI, robotics, and other advanced technologies. While performance has been mixed, recent quarters have shown positive results, and the fund is pivoting towards major AI investments. Notably, the fund’s strategic shift towards AI is driven by the increasing market potential and advancements in AI technologies, which are expected to revolutionize various industries. For instance, investments in companies like OpenAI and Boston Dynamics have demonstrated significant growth and innovation, underscoring the fund’s commitment to leading the AI revolution.

Introduction

The SoftBank Vision Fund, founded by Masayoshi Son, the CEO of SoftBank Group, in 2017, is one of the largest technology investment funds globally. The fund was established with the goal of investing in technology companies, particularly those in artificial intelligence, robotics, and other advanced fields. Initially, the Vision Fund raised $93 billion, with significant contributions from investors such as Saudi Arabia’s Public Investment Fund, Mubadala Investment Company of the UAE, Apple, Foxconn, Qualcomm, and Sharp. Over the years, the fund has expanded its portfolio to include a diverse range of companies, reflecting its commitment to fostering innovation and technological advancement. For instance, investments in companies like Uber and WeWork have highlighted the fund’s strategy of backing high-potential, disruptive businesses. Additionally, the Vision Fund has played a pivotal role in the growth of AI and robotics startups, providing them with the necessary capital to scale their operations and achieve technological breakthroughs

Founders and Key Members

• Founder and Chairman: Masayoshi Son (CEO of SoftBank Group)Masayoshi Son is the visionary behind the SoftBank Vision Fund, leveraging his extensive experience in technology investments to drive the fund’s strategic direction. As Chairman, Son continues to influence the fund’s high-level decisions and long-term goals. Since the inception of the Vision Fund, Son has made several strategic decisions, including significant investments in technology companies focusing on AI, robotics, and other cutting-edge technologies. Notable investments include Uber, WeWork, and ARM Holdings. Son’s strategy often involves taking large stakes in companies with the potential to dominate their industries. Despite challenges, such as the high-profile struggles of WeWork, Son continues to pursue aggressive investment strategies to shape the future of technology and innovation.
• CEO: Alex Clavel
  Alex Clavel serves as the CEO of SoftBank Vision Fund, bringing extensive experience in global investments and technology sectors. Under his leadership, the fund has adopted a more disciplined investment approach with a focus on profitability and sustainable growth. Clavel, who previously served as CEO of SoftBank Group International, plays a pivotal role in steering the fund’s strategic direction and ensuring alignment with SoftBank’s broader objectives, particularly in investments focused on AI, fintech, and enterprise software.
• Managing Partners: The fund is managed by a team of experienced investment professionals
  
  - Greg Moon: Greg Moon oversees investments and operations in Asia and Europe, leveraging his extensive experience to identify and capitalize on emerging opportunities across these regions. Moon emphasizes growth-stage investments in technology companies, with a strong interest in software, internet, and digital media sectors that demonstrate high potential for market transformation and growth.
  
  - Brett Rochkind: Brett Rochkind focuses on enterprise software and technology investments, bringing extensive experience from his previous roles in technology-focused private equity. His investment strategy emphasizes scalable enterprise solutions and has resulted in several successful exits in the enterprise software sector.
  
  - Kentaro Matsui: Kentaro Matsui leads investments in Japan and broader Asia, specializing in technology and innovation-driven companies. His investments have significantly contributed to the technological landscape in the region, fostering innovation and growth across various technology sectors.
  
  - Mark Agne: Mark Agne serves as Managing Partner and Head of Capture Strategies, contributing his expertise in global markets and investment strategy. His role focuses on developing and implementing sophisticated investment approaches across the fund’s global portfolio, with emphasis on maximizing value creation and strategic positioning.
  
  - Sumer Juneja: Sumer Juneja serves as the Head of EMEA and India Investing, focusing on technology-enabled businesses and digital transformation. His strategic vision has been instrumental in identifying and supporting companies that are driving digital innovation and transformation in these rapidly evolving markets.
  
  - Vikas J Parakh: Vikas J Parakh brings deep expertise in enterprise technology and software investments, particularly in North American markets. His strategic investments have significantly influenced the performance of the North American market portfolio, driving growth and innovation in enterprise technology solutions.

Together, they contribute to the fund’s overall strategy and performance by implementing a more disciplined investment approach, reducing high-risk investments, and emphasizing profitability and sustainability. This leadership team has established a more stable and focused investment strategy, aiming to enhance returns for investors while navigating the complexities of the global investment landscape.

Key Investment Committee Members:
The fund’s investment decisions are guided by a committee that includes Masayoshi Son and other senior executives from SoftBank Group, ensuring alignment with the overall vision and investment philosophy of the organization. The investment committee uses specific criteria to evaluate and approve investment opportunities, including market potential, technology and innovation, management team, scalability, competitive advantage, financial performance, and strategic fit.

Headquarters

The fund is headquartered in London, England, with additional offices in Tokyo, San Francisco, and Abu Dhabi to support its global investment activities

Assets Under Management (AUM)

• Vision Fund 1 (SVF1), launched in 2017, closed with $98.6 billion in committed capital, making it the largest technology-focused venture capital fund in history. Key investors include Saudi Arabia’s Public Investment Fund ($45 billion), SoftBank Group ($28 billion), and Abu Dhabi’s Mubadala Investment Company ($15 billion). As of 2025, SVF1 has an Internal Rate of Return (IRR) of 7%, a Total Value to Paid-In (TVPI) multiple of 1.4x, and has invested in 88 companies with 12 exits and 15 write-offs. The total capital invested is $70 billion, with a current portfolio value of $98 billion.
• Vision Fund 2 (SVF2), established in 2019, has approximately $56 billion in committed capital, with SoftBank Group being the primary investor alongside contributions from the company’s management. This fund focuses on AI-driven companies and later-stage technology investments. The sector allocation for SVF2 includes 50% in technology, 25% in consumer, 10% in financial, 10% in healthcare, and 5% in other sectors. The evaluation criteria for AI-driven companies by Vision Fund 2 include market potential, technology and innovation, business model, management team, financial performance, competitive landscape, customer base, and regulatory environment. Notable successes for Vision Fund 2 include investments in companies like DoorDash, which went public in December 2020, and AutoStore, which had a successful IPO in October 2021. Other significant exits include Coupang and Grab, both of which also went public. As of 2025, Vision Fund 2 has an Internal Rate of Return (IRR) of 0.2% and a Total Value to Paid-In (TVPI) multiple of 1.03x.
• Latin America Fund, launched in 2019 with $5 billion, operates as a separate investment vehicle focused on technology opportunities in Latin America. Key success stories and notable exits from this fund include investments in companies like Rappi and Gympass, which have shown significant growth and market impact.
• The combined AUM across all funds reached approximately $154 billion by late 2023, with investments spanning over 400 companies globally across various technology sectors and growth stages. Recent market conditions have impacted valuations, but the funds continue to adapt their strategies to maintain robust portfolio performance.

Investment Strategy and Focus

The SoftBank Vision Fund focuses on investing in transformative technologies and companies that have the potential to reshape industries. Key areas of focus include:

1. Artificial Intelligence (AI): The fund targets AI companies that are developing cutting-edge technologies to enhance automation, data analysis, and decision-making processes. Specific criteria for AI investments include market potential, innovative technology, scalability, strong leadership, strategic fit, and financial performance.
2. Robotics: Investments are made in companies that are advancing robotic technologies for various applications, including manufacturing, healthcare, and logistics. The fund evaluates robotics companies based on their ability to disrupt existing industries, scalability, and the strength of their leadership teams.
3. Internet of Things (IoT): The fund supports IoT companies that are creating interconnected devices and systems to improve efficiency and connectivity in various sectors. Key metrics for IoT investments include market potential, technological innovation, and alignment with SoftBank’s strategic vision.
4. Autonomous Vehicles: The fund invests in companies developing self-driving technologies and related infrastructure to revolutionize transportation. Criteria for these investments include the potential for industry disruption, scalability, and the experience of the leadership team.
5. Biotechnology: Investments are directed towards biotech firms that are innovating in areas such as gene editing, personalized medicine, and drug discovery. The fund looks for companies with strong market potential, innovative technologies, and clear paths to profitability.
6. Cloud Technologies: The fund focuses on cloud computing companies that provide scalable and secure solutions for data storage, processing, and management. Key evaluation metrics include market potential, technological innovation, and scalability.

The fund is known for making large, bold investments in companies it believes can become industry leaders. For example, the Vision Fund’s investment in ARM Holdings, a semiconductor and software design company, exemplifies its strategy of backing firms with significant growth potential and industry impact. Notable success stories include DoorDash, which went public in December 2020, and ByteDance, the parent company of TikTok. However, the fund has also faced challenges, such as the failed IPO of WeWork and significant losses in companies like Uber and Oyo.

In comparison to other major technology-focused investment funds, the SoftBank Vision Fund’s strategy involves higher risk and larger investments, aiming for substantial returns and significant industry influence. Future trends and emerging technologies that the fund is likely to focus on include renewable energy, advanced AI applications, and next-generation communication technologies.

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Key Portfolio Companies

The SoftBank Vision Fund has a diverse portfolio consisting of 332 companies as of 2025. It has achieved 69 portfolio exits and includes 129 unicorns. The fund has invested nearly $40 billion into 19 companies listed in the Disruptor 50. Some of the key portfolio companies include:

• Uber: Ride-hailing and food delivery platform. Since receiving investment from the Vision Fund, Uber has seen significant financial changes, including a revenue rebound to $17.5 billion in 2021 and a reduction in net loss to $2.4 billion. Financial metrics such as net loss, revenue growth, and return on investment (ROI) have been used to evaluate the impact of the Vision Fund’s investment. The ROI for SoftBank Vision Fund on Uber has been decreasing over the years, from 30% in 2021 to 10% in 2025.
• WeWork: Shared workspace provider. Despite initial setbacks, WeWork has been restructuring its business model to achieve profitability. Key milestones include the failed IPO in 2019, cost-cutting measures in 2020, a public listing through a SPAC merger in 2021, and further restructuring efforts in 2023. Financial outcomes have included a net loss of $2.3 billion in 2022 and ongoing efforts to reduce lease obligations and achieve positive cash flow.
• ARM Holdings: Semiconductor and software design company. ARM continues to be a leader in its field, with ongoing innovations in chip design. Recent innovations include the ARM Cortex-X4, Cortex-A720, Cortex-A520, Immortalis-G720 GPU, and Neoverse V2, which have applications in mobile computing, automotive, IoT, data centers, and consumer electronics. The ARM Cortex-X4, announced in 2023, is projected to deliver a 15% performance improvement over its predecessor, the Cortex-X3. It is designed to achieve higher clock speeds and better power efficiency, making it suitable for high-end smartphones and other performance-critical applications. Financially, ARM Holdings has shown consistent growth, with revenues increasing from $1.5 billion in 2020 to $4.0 billion in 2025, and operating income rising from $300 million to $800 million over the same period.
• OpenAI: Artificial intelligence research laboratory. OpenAI has made significant strides in AI research and development, contributing to advancements in natural language processing, reinforcement learning, and generative models. Notable achievements include the development of GPT-4, which has set new benchmarks in language understanding and generation. OpenAI’s research has been instrumental in various applications, from improving conversational AI to enhancing automated decision-making systems.
• ByteDance: Parent company of TikTok, a leading social media platform. ByteDance has maintained its position as a dominant player in the social media landscape through strategies such as user base expansion, monetization, technological innovation, global expansion, strategic partnerships, and regulatory compliance. Despite regulatory challenges, ByteDance continues to thrive. The company has navigated these challenges by enhancing its data privacy measures, complying with local regulations, and engaging in proactive dialogue with regulators. These strategies have facilitated ByteDance’s global expansion and solidified its market position.
• Didi: China’s leading ride-hailing platform. Despite regulatory challenges in China, Didi continues to dominate the domestic market and expand internationally. The company has faced stricter data privacy regulations and increased scrutiny over its business practices, which have required it to enhance data security measures, ensure operational transparency, and comply with new government policies. These regulatory challenges have impacted its market operations and international expansion strategies, but Didi remains a key player in the ride-hailing industry.
• bKash: Bangladesh’s largest mobile financial services provider. bKash has revolutionized financial inclusion in Bangladesh, serving over 50 million users. The growth of its user base has significantly influenced financial inclusion in the country, driven by factors such as widespread mobile phone usage, strategic partnerships, and a focus on customer-centric services.
• Netradyne: AI-based fleet safety management company. Netradyne has been expanding its market presence with innovative safety solutions. These include real-time driver coaching, automated event detection, and comprehensive safety analytics, which have positively impacted the fleet safety management industry by improving driver safety and fleet performance.
• 10x Genomics: Biotechnology company specializing in gene sequencing technology. 10x Genomics is making strides in the biotech industry with its cutting-edge sequencing technologies. Their solutions, such as Single Cell Gene Expression, Single Cell Immune Profiling, and Single Cell ATAC Sequencing, offer unique advantages in understanding cellular heterogeneity, immune cell diversity, and gene regulatory elements, making them widely used in research areas like cancer, immunology, and developmental biology.
• Automation Anywhere: Robotic process automation software provider. Automation Anywhere continues to grow, providing essential automation solutions to various industries, including banking and financial services, healthcare, insurance, manufacturing, retail, telecommunications, and the public sector. These industries have reported measurable benefits such as increased efficiency, reduced operational costs, and improved accuracy.
• Chime: Financial technology company offering banking services. Chime has seen rapid growth, becoming a popular choice for digital banking. Factors contributing to its success include a user-friendly mobile app, fee-free banking services, and a focus on customer satisfaction, which differentiate it from traditional banks.
• Cohesity: Data management company focusing on backup and recovery solutions. Cohesity has been enhancing its product offerings to meet the growing demand for data management. Key features of its latest offerings include advanced data protection, simplified data recovery, and scalable storage solutions, which have evolved to address the increasing complexity of data management needs.

The Vision Fund’s investment strategy focuses on companies with significant growth potential, leveraging technologies like AI and biotechnology. However, these investments come with risks, including market volatility and regulatory challenges. The fund employs various exit strategies, such as IPOs, M&A, secondary sales, and buybacks, to realize returns and provide liquidity.

Performance of the Fund

The performance of the SoftBank Vision Fund has been mixed, with periods of significant gains and losses. Vision Fund 1 has achieved a gross gain of $22.6 billion since its inception. However, Vision Fund 2 has incurred a $21 billion loss, offsetting much of the gains from Vision Fund 1. The losses in Vision Fund 2 were primarily driven by a decline in the value of portfolio companies, market volatility, economic uncertainty, poor performance of technology and startup investments, write-downs, and impairments on investments, as well as increased competition and operational challenges in the tech sector. Despite these challenges, recent quarters have shown some positive results, indicating a potential turnaround.

Recent Performance Highlights

• Fiscal Second Quarter Ending September 30, 2024: SoftBank reported a gain of 608.5 billion yen ($3.96 billion) from its Vision Fund investments. This gain was driven by strong performance in key portfolio companies and favorable market conditions.
• Fiscal Year Ending March 31, 2024: SoftBank posted a 724.3 billion yen ($4.6 billion) gain on its Vision Fund, marking the first annual gain in three years. This improvement was attributed to strategic adjustments and a recovery in the tech sector.
• 2024: The Vision Fund showed significant recovery and performance improvements, including a quarterly gain of $7.7 billion, surpassing analyst expectations. This recovery was supported by a rebound in technology stocks and successful exits from several investments.
• Investment in OpenAI: SoftBank’s potential $25 billion investment in OpenAI could significantly impact the fund’s future performance, positioning it as a major player in the AI sector. This investment aligns with the fund’s strategy to focus on transformative technologies.
• Helion Investment: A $425 million Series F investment in Helion, valuing the company at $5.425 billion post-money, highlights the fund’s focus on innovative technologies. This investment is expected to enhance the fund’s portfolio diversification and reduce risk.
• Stargate Project: Announced a $500 billion investment over four years to build new AI infrastructure, demonstrating a long-term commitment to AI advancements. This project is anticipated to drive significant growth and innovation in the AI sector. If you want to know more about the Stargate project, refer to this post <<The Stargate Project: A $500 Billion Investment in U.S. AI Infrastructure>>

These recent positive results suggest that the fund’s strategy adjustments and market conditions may be contributing to improved performance. The Vision Fund’s recent investments in OpenAI, Helion, and the Stargate Project have also positively impacted the overall portfolio diversification and risk profile, aligning with broader market trends and economic conditions in 2024.

Recent News and Strategic Shift

Recent developments highlight SoftBank’s strategic shift towards AI and chip technology investments. In 2025, SoftBank Vision Fund is making a significant move in the AI sector, specifically targeting OpenAI, with talks to invest up to $25 billion. This potential investment underscores SoftBank’s commitment to advancing artificial intelligence technologies and aligns with its history of investing in transformative technologies and companies. For instance, SoftBank’s previous investments in companies like ARM Holdings and NVIDIA have shown its dedication to the semiconductor and AI industries.

The focus on AI reflects a broader trend in the tech investment landscape, with AI being seen as a key driver of future innovation and economic growth. SoftBank’s large-scale investment in OpenAI, if completed, would represent one of the most significant bets on AI technology to date. This move is expected to bolster OpenAI’s capabilities in developing advanced AI models and applications, potentially leading to breakthroughs in various sectors such as healthcare, finance, and autonomous systems.

The SoftBank Vision Fund’s future outlook appears to be focused on capitalizing on the AI revolution. With its potential large-scale investment in OpenAI and continued focus on transformative technologies, the fund is positioning itself at the forefront of technological innovation. The fund’s strategy includes identifying and nurturing companies that are developing groundbreaking AI applications, which could revolutionize various industries such as healthcare, finance, and transportation. For instance, investments in AI-driven healthcare startups could lead to advancements in personalized medicine and diagnostics, while AI innovations in finance might enhance algorithmic trading and risk management.

However, the fund’s performance will likely continue to be closely watched, given its past volatility and the high-risk, high-reward nature of its investment strategy. The fund’s history of significant fluctuations in returns underscores the importance of careful portfolio management and strategic foresight. Additionally, the evolving regulatory landscape for AI technologies could pose challenges, necessitating adaptive strategies to navigate potential legal and ethical considerations. Overall, while the SoftBank Vision Fund’s focus on AI presents substantial opportunities, it also requires vigilant oversight to mitigate associated risks.

Conclusion

The SoftBank Vision Fund continues to play a significant role in the venture capital landscape, reshaping investment strategies and dynamics within the industry. Its massive scale, bold investment approach, and focus on cutting-edge technologies make it a unique and influential player in the global tech investment ecosystem. As the fund pivots towards AI and continues to evolve its strategy, it will undoubtedly remain a key force in shaping the future of technology and innovation. Notable recent investments include a $500 million stake in OpenAI and a $100 billion commitment to AI development in the U.S., highlighting its dedication to advancing artificial intelligence. Additionally, the fund’s collaboration with Apollo to create a large fund for AI projects further underscores its strategic focus.

For more detailed insights into specific companies within the portfolio, you can visit the SoftBank Vision Fund Portfolio.

If you want to know more about the SoftBank corporation itself, refer to this post <<SoftBank: A Comprehensive Analysis of a Global Tech Investment Giant>>

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