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I worked for a company that took SoftBank money, though I joined after the investment. As someone else mentioned they are later stage investors, and do look fo
by xivzgrev 7y ago
I worked for a company that took SoftBank money, though I joined after the investment.
As someone else mentioned they are later stage investors, and do look for potentially transformative things. In order to get in they offer large investments and ridiculous valuations, which appeal to entrepeneur’s egos. The dark side of accepting money at high valuations is The Next Round.
If you aren’t profitable by the next time you need money, you better have shown enough growth to not only match the SoftBank investment but to go beyond it to a reasonable investor. Otherwise you don’t have a growth story and investors turn their noses up (or offer shitty down-round terms).
So in a way SoftBank can (and has) torpedo its own investments by its entry strategy and human greed. In the case of my company they eventually sold, but only after a complete pivot and focus on a different market, and ultimately at a lower price.