By Jon Russell
SoftBank shook up the venture capital world with its unprecedented $100 billion Vision Fund, and the speculation continues around its follow-up.
The fund hasn’t quite closed $100 billion — it is mighty close… — but that hasn’t stopped reports of a sequel from surfacing for the last 18 months. SoftBank has mown through its allocation at speed, dealmaking increased to a record speed in Q1 despite controversy while its hiring has intensified, but the latest chatter suggests that a number of the fund’s key backers are lukewarm at the prospect of a return act.
The Wall Street Journal this weekend reported that Saudi Arabia’s Public Investment Fund (PIF), which anchored the Vision Fund with a $45 billion investment (but also provides the controversy), and the Canada Pension Plan Investment Board are among those that “plan to make limited or no contributions” to the follow-up vehicle.
Sources told the Journal that a key factor is that many of these funds have disintermediated SoftBank to create their own vehicles that make late-stage investments in a more direct way. That cuts out the management fees to third-parties, and it gives the fund managers total control.
One wonders whether …read more
Source: Tech Crunch