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That's a shame for the company. What's more interesting for me in this headline is how the main point is that it's a SoftBank-backed company. News of startups
by leshokunin 7y ago
That's a shame for the company. What's more interesting for me in this headline is how the main point is that it's a SoftBank-backed company.
News of startups dying happens every day, even for VC-backed ones. There seems to be some kind of extra scrutiny applied to SoftBank in the post WeWork debacle. It's rather unfortunate, because that creates a narrative that's distracting.
- softasyrbank 7y agoThe fact that this was a SoftBank backed company, the insane valuation placed on it, the poor vetting of founders/higher management, and the wild gyrations required when new decisions come down every month (get more customers doesn't matter if they are profitable! no, stop getting customers, they aren't profitable yet! etc) does in-fact have a lot to do with the outcome tho signed: someone who programmed for a SoftBank backed company
- _-___________-_ 7y agoDo SoftBank have a lower success rate with their bets than other VCs?
- mrnobody_67 7y agoToo early to tell. Funds have 10 year lifespans... But their biggest bets are heavily in the red and they are having trouble raising their second fund, which means LPs are doubtful they can return top quartile VC returns.
- leshokunin 7y agoNo question about that. I’m just pointing out the extra scrutiny to something I believe we see in the average VC portfolio and the average startup.
- JMTQp8lwXL 7y agoWhat exactly is it distracting us from? It sounds like you're suggesting more important is being overlooked, and your comment has left me curious.
- leshokunin 7y agoWe live in an attention economy. Anything not insightful or meaningful is going to consume time that could be used for better things. What that is, is up to you!
- totalZero 7y agoTwo things you seem to be forgetting: 1) SoftBank doesn't give up on companies it believes can be fixed. Look at Sprint as an example. So when a SoftBank company fails, it's not a simple oversight. 2) The narrative about WeWork wasn't created, it was real. Bullshit valuation of a company whose few competitors were worth less despite ostensibly executing better. SoftBank gets to wear that one. You can't exactly call a multi-billion-dollar loss a "distraction."