SB Investments is a leading global investment firm founded by Masayoshi Son. It manages the $100 billion Vision Fund and has made high-profile investments in many unicorn startups worldwide. This article analyzes SB Investments’ investment strategies, portfolio companies, controversies, and future outlook.
SB Investments Adopts Aggressive Investment Strategies
SB Investments, managed by CEO Rajeev Misra, adopts aggressive strategies to invest in high-growth tech startups globally. It participates in multi-billion dollar late-stage funding rounds to rapidly increase startup valuations. Critics argue such overvaluations may be a bubble.
SB Investments Portfolio Includes High-Profile Unicorns
SB Investments has invested in many unicorn startups at high valuations, including ByteDance, Didi Chuxing, Grab and Oyo. However, the failed WeWork IPO and other underperformers like Uber have raised questions about its investment practices.
SB Investments uses fair value accounting to record large unrealized gains as profits when revaluing its portfolio. This controversial practice is compliant but criticised for inflating Vision Fund’s performance.
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Market Conditions Pose Challenges Ahead
With unfavourable macro conditions like rising interest rates, SB Investments faces challenges converting unrealized portfolio gains into tangible returns. But its access to large capital allows room for error.
In summary, SB Investments adopts aggressive investment strategies to fund high-profile unicorns globally, leading to inflated valuations and unrealized gains. Challenging market conditions pose tests for converting paper profits into realized returns.