SoftBank senior director says most Canadian companies are too small to interest Vision Fund


Yoshiaki Tanaka said later-stage tech firms, on which SoftBank focuses, are hard to come by in Canada, where most firms are bought out by U.S. investors after they reach a certain size. (Financial Post)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: SoftBank’s first Vision Fund, the largest tech investment fund in the world, tends to invest in late-stage private tech companies approaching a public launch. Most VC investment deals in Canada are under $100 million—with three exceptions in the first half of 2019—but deal size in the country is steadily growing. The first half of this year saw a record $2.15 billion in VC deals, and deal size is up 26 per cent compared to the average of the last five years. Overall, VC investments in Canada are shifting toward later-stage firms. Meanwhile, SoftBank is facing investor skepticism for Vision Fund 2. Its losses from cash-losing startups like WeWork and Uber, which could top US$5 billion, are making major investors like Apple and Microsoft wary of putting money into the fund.