SoftBank Could Self-Fund Vision Fund 3 or Ramp up Vision Fund 2

Japanese global tech and investment conglomerate SoftBank is said to be weighing the launch of a third Vision Fund or adding money to its Vision Fund 2, which along with its first Vision Fund has been bleeding red.

The world’s largest backer of startups would likely use its own money to launch a third fund, which aligns with the company’s mission to retool after SoftBank posted a record $23 billion loss in the three months ending in June, The Wall Street Journal reported on Wednesday (Sept. 14), citing unnamed sources.

The company’s losses are largely attributed to the two Vision Funds. Vision Fund 2, SoftBank’s main investment fund, is valued less than the investments that it originated with, the WSJ reported. As a result, the fund’s staff has seen a reduction in pay. Sources told the WSJ a decision about a new fund will be made in a few months.

See also: SoftBank Vision Fund Head Misra to Step Aside

Rajeev Misra, head of SoftBank’s investing business, exited that role to oversee a new investment fund outside the business and is remaining with the company in a limited capacity, PYMNTS reported in July. He will still oversee SoftBank’s original Vision Fund, launched in 2017, but has stepped away from Vision Fund 2.

Hit hard by the rout in tech valuations, SoftBank CEO Masayoshi Son cut back on startup spending but has said he is committed to both startups and the technology space and will return to funding. Son takes a personal financial loss with Vision Fund 2 in the red because of the $2.6 billion commitment he made, WSJ reported. Son owes SoftBank if the fund doesn’t perform.

Read more: SoftBank’s Vision Fund Suffers Amid Tech Stock Slide

SoftBank’s Vision Fund started suffering in May from the market’s tech selloff, with many of the stocks making up the fund having dropped by more than 50% since the start of 2022, PYMNTS reported.