Morning Markets: Layoffs at Fair mark it as the fourth known company the Vision Fund has invested in that has undergone layoffs.
Yesterday TechCrunch reported that Fair, a Vision Fund investee, will “be laying off 40% of its staff [… and] removing its CFO, Tyler Painter.” A company doesn’t undertake a set of changes that painful in unison unless things have gone rather poorly.
Inclusive of debt financing, corporate and venture rounds, Fair has raised over $2 billion from investors like Ally Financial, Silicon Valley Bank, BMW iVentures, Sherpa Capital, and Javelin Venture Partners along with both the Vision Fund and SoftBank itself, according to Crunchbase data.
The same could be said (notable business model followed by staff cuts) for a number of other Vision Fund-backed firms:
No one wants to lose money on an investment, forget losing billions on multiple unprofitable companies.