Article from WeChat public account:Silver Star (ID:guixingren123), author: CJ, head Figure from: vision China
Do he still wait for the next Alibaba?
Softbank President Sun Zhengyi has been the richest man in the world for three days in his 62 years of life.
But he didn’t have time to tell Bill Gates, and the Internet bubble that sent him to the sky suddenly collapsed. The $70 billion in paper wealth disappeared in the financial crisis, and the “Japanese stock god Buffett” fell to the brink of bankruptcy.
That was nearly 20 years ago, Sun Zhengyi once gambled Silicon Valley, keyword: Internet.
In 2019, Sun Zhengyi completed another gamble. He spent three years investing the largest $100 billion venture capital fund in history.
How much is the $100 million pool? The old American Sequoia Capital also raised the largest fund in local history to counter Softbank – $8 billion.
Softbank became the world’s largest technology investor, and Sun Zheng called himself a “unicorn hunter.”
Sun Justice is a rare person who uses centuries to measure development. He wants to invest in the next few centuries to shape the world.Enterprises must build a sustained growth of Softbank for 300 years.
The US investment legend of Softbank has risen again: Uber with a valuation of 100 billion, WeWork with 47 billion, a $23 billion Slack, and $12.6 billion for DoorDash…
So in 2019, it became the largest year for US venture capital-driven technology IPOs. Key words: technology.
However, the world likes legends, likes to sing and admire the altar, and admire the myth.
2019 In the second half of the year, Sun’s unicorn empire fell and fell:
Uber valuation waistline
WeWork failed to market
Slack’s stock price is negative
DoorDash’s fate is uncertain
……
With $100 billion, I have tied the top talents, tied up countless interests, and I have not succeeded.
Now, Softbank has more than $100 billion in debt, and the return on investment is shrinking with the valuation of investment companies. Hundreds of unprofitable companies investing globally, the vision of three hundred years of corporate growth, are still waiting for Softbank to raise capital to play the second half.
The golden age of capital igniting the mad imagination of technology entrepreneurship, will it be the end of the story?
born and subverted
“By investing in companies that have the potential to become industry leaders, our goal is to create a strategic group that can continue to grow for 300 years.” —— Sun Zhengyi
After the Internet financial crisis, Softbank once again closed its doors when it was listed on Alibaba: In 2000, it invested 20 million U.S. dollars and received a return of 60 billion U.S. dollars.
Soft silver spent tenFor a few years, wait for this moment to come.
But after that, his patience seems to be not so good.
In 2016, Sun Zhengyi launched a god-made chariot, and the Softbank Vision Fund with a $100 billion aircraft carrier was in the world.
Now anyone can spend more money than startups such as Uber, who are criticized, that is, they have invested $100 billion in softbanks for three years.
He always excuses entrepreneurs who can’t refuse, the price tag of rival investors, and subvert the rules of the venture capital industry.
New Enterprise Associates executive partner Scott Sandell told CNN that he had “very close” to a $30 million valuation to complete a $30 million investment in a startup.
But “Sun Justice has taken the shot” and provided $100 million to startups for a $500 million valuation.
Softbank became the price strategist of Silicon Valley startups, and its offer price has increased several times, and corporate valuations have expanded several times.
This is a capital that entrepreneurs can’t refuse. It’s usually huge, it can make a firm’s valuation soar, clear up industry competition, and make sure it doesn’t fall into the hands of competitors.
For example, if Uber doesn’t accept Softbank’s investment, then its rival Lyft can take the money and fill it with Uber’s ammunition.
These three years are also a blitzkrieg for Softbank. It handed over investment offers everywhere, almost bloody entrepreneurial financing news, and pushed up the valuation of a number of startups.
Small winds are the choice, big soft silver is all. Investors often marvel at the speed of money-burning in entrepreneurship, and they can’t afford a wave of money. The capital of Softbank is all about huge waves.
Sharing economy, artificial intelligence,>Softbank and its unicorns show a very consistent style: huge capital, high growth, global expansion, high debt, subversive industry.
Softbank even invested in all the players in some industries, thinking that no matter who is finally cleared, Softbank can “win the winner.”
In the field of shared travel, Softbank invested in US Uber, China’s Didi, Southeast Asia’s Grab, India’s Ola. They confronted the global market and contributed to the famous scene of “the soldiers are still killing on the front line and the generals have surrendered in the accounts.” If you talk about identity, it is also a soft silver system.
Softbank breaks the traditional valuation method and is willing to offer high prices to companies that do not see recent earnings. Net car travel, sharing economy, automatic driving, food takeaway… They are losing money, but Softbank believes that they can change the world and have a huge interest one day.
Softbank is looking for the next Alibaba.
But like in the Internet financial bubble, the crazy market has forgotten the importance of profitability indicators. Landing in the stock market is like robbing a hard rock, and you can see if it is a jade.
When these unicorns walked into the capital market with a huge body, they revealed the appearance of a giant baby, including Sun Justice as the next Weiba of Alibaba.
When Uber went public, Softbank lost $600 million. WeWork’s valuation fell from $47 billion to nearly $10 billion, and even fell below the investment level of Softbank, so Softbank had to consider taking over WeWork.
Too many people are waiting for the boots of the economic recession to come up with a defensive posture, fearing that there is not enough capital in their hands, and they will not survive the winter.
At this time, in addition to Softbank, who is willing to give him a “giant baby” blood transfusion?
Although no one wants to believe in investing people who invest heavily in wealth, there will be a day of collective eye-opening. But the aura of technology is not a life-saving, the growth brought about by the expansion of burning money, and the risk of “may never be profitable” in the prospectus is enough to make the valuation bubble break.
Even the seemingly sound software service company like Slack is suspected of being overvalued and its share price has fallen.
Softbank Crisis
Softbank and its independenceLike the horns, they carry high debts.
According to Softbank’s 2019 financial report, its debt exceeded $100 billion. And the $100 billion fund, with a 7% return, requires $7 billion in value added.
In June of this year, Softbank revealed that its investment in the original fund has so far received a 62% return. In August this year, Softbank disclosed in its earnings report that the operating profit of the fund increased by nearly 66% year-on-year, or about $3.7 billion.
Softbank explained that this is due to the valuation growth of investment companies OYO, Slack and DoorDash.
The return on wealth of Softbank is also on paper, all from companies that have experienced a surge in valuations once they accept Softbank investments.
In 2018, Softbank invested in DoorDash at a valuation of $14. In 2019, the valuation of DoorDash expanded to $12.6 billion.
Uber and WeWork have enjoyed the same value-added speed. However, Uber’s market capitalization is close to the valuation, and WeWork’s valuation after listing abortion fell by three-quarters.
The aura of capital has faded, and it is suspected that infectious diseases spread to other companies. Are these companies really technology companies? Can they really make money in their lifetime? Will DoorDash and other highly valued unicorns face the same fate of collapse?
Capitalism can be the new hegemon of an industry, and it can also ruin an opportunity for an entrepreneur to become a hero.
The Silicon Valley after the capital wash may be forgotten. The spiritual source of Silicon Valley entrepreneurship is to start a business in the garage, to see if the technology is mature, whether there are profit conditions, and whether the market will recognize it.
The regular financing cycle and growth rate are lost in the capital tide.
The situation is difficult to violate, the early years of artificial intelligence winter, the Alibaba cloud service that was once unable to fly, not the direction is not good, just