VC investing has become a corporate fad in Japan, with the country’s biggest cigarette maker, its largest travel agent and even the post office jumping on the bandwagon.
All’s not well between SoftBank COO Marcelo Claure and Rajeev Misra, who oversees SoftBank’s $100 billion Vision Fund.
The vehicle is likely to focus on venture investments and will be separate from SoftBank’s huge Vision Fund.
SoftBank has set up an unusual compensation structure for the fund that includes a $5 billion loan to employees. The debt is swapped for equity in the fund and will generate profit when deals make money — and losses when they don’t.
The shares of SoftBank Group Corp.’s Japanese telecom business fell at the start of trading after Masayoshi Son raised more than $20 billion in an initial public offering.
There are a number of reasons Japanese aren’t starting companies. Jobs are plentiful and the unemployment rate is the lowest among all developed economies save for the Czech Republic.
The ride-hailing giant has reportedly held talks with both companies but hasn’t yet decided on a course of action.
The e-commerce operator is valued at about $7 billion after the round.
The Japanese technology conglomerate plans to sell 1.6 billion shares at 1,500 yen apiece, valuing the business at 7.18 trillion yen ($62.9 billion).
SoftBank reported second-quarter profit that far exceeded the highest analyst estimate largely because of multi-billion dollar gains on a handful of his many deals.