The SoftBank Group stock fell for five days in a row on the 16th stock market, hitting the lowest price in regarding nine months. Silicon Valley Bank, a major lender for start-up companies (SVB)’s bankruptcy has hit the startup ecosystem and cast a dark cloud over the company’s business model, which primarily focuses on fund investment.
On the morning of the 16th, SoftBank G shares fell to 4766 yen, down 4.1% from the previous day, the lowest intraday price since June 17, 2022 (4708 yen). It was the first five-day drop since September last year.
President Masayoshi Son
Photographer: Kiyoshi Ota/Bloomberg
Mitsushige Akino, executive director of Ichiyoshi Asset Management, said, “The world is facing financial instability, and people are skeptical that it will turn into a financial crisis. If a recession occurs, it will hurt start-up companies and make it impossible to raise funds. From the association, SoftBank Group, which operates a fund that looks like canned food for start-up companies, is probably being affected.”
The financial results for the October-December period of 2022 (third quarter) announced by SoftBank Group in February areThe decline in fair value continued, and the Vision Fund (SVF) business posted a large loss for the fourth consecutive quarter. In the third quarter, SVF No. 1, No. 2 and the Latin America Fund business recorded a loss of 660.1 billion yen, and a net loss of 783.4 billion yen.
Tetsuro Ii, president of Commons Asset Management, pointed out that since the interest rate hike began in the United States, it has become increasingly difficult for start-up companies to raise funds, and opportunities for initial public offerings (IPOs) have decreased. He said the SVB bankruptcy “would certainly hurt the market” and “will see some devaluation of tech companies.”
(From the 4th paragraph, I added an overview of financial results and comments from experts.)
