Softbank and other investors are exaggerating the value of these start-ups, causing the entire startup ecosystem to overheat.

Editor’s note: This article is from Tencent Technology, reviewing the Golden Deer .

From OYO to Uber, Softbank's $100 billion fund makes the startup ecosystem more vulnerable

Masayoshi Son, founder and CEO of Softbank Group, Japan

Focus on focus

  1. The Vision Fund is the largest venture capital fund in history. It is an important part of the flood of funds that has swept the world over the past decade, changing the lives of countless contractors who rely on the “zero-employment economy”.

  2. Many young companies use Softbank’s funds to provide enviable incentives to quickly attract as many employees as possible. But when they have not yet made a profit, and Softbank has changed the growth tone, these companies tend to drastically cut or even cancel the incentives they have previously taken, which puts the contractor with heavy burdens.

  3. Softbank and other investors are exaggerating the value of these start-ups, leading to overheating of the entire entrepreneurial ecosystem and inadequate corporate systems. When these companies try to cash out through listing, they often encounter big troubles.

  4. When some startups cut costs at the urging of Softbank, they reduced the rewards for employees. Many contractors say they want to stop working with start-ups, but they are not free to withdraw because they have to repay their previous investments.

According to foreign media reports, the Vision Fund of the Softbank Group of Japan is the largest venture capital fund in history. It is an important part of the flood of funds that has swept the world in the past decade, and is a startup company around the world. A lot of money has been injected, and many of them have adopted a business model in which contractors provide services. Sun Justice urged these start-ups to develop as quickly as possible, and through unsustainable incentives, drivers and hotel operators and other contractors made commitments that led to the disruption of countless lives, which also made the entrepreneurial ecosystem More vulnerable.