Morning Markets: As the year starts to wrap, a quick digest of the Vision Fund’s investment cadence.
While the market digests SoftBank’s profit-free earnings report, replete with financial carnage in the wake of l’affaire WeWork, the Vision Fund’s investment pace is slowing.
According to Crunchbase data, the Vision Fund’s investment cadence slowed from 13 known deals in Q4 2018, to 12 in Q1 2019, to 11 in Q2 2019, to six in Q3 2019.
This results are unsurprising given that the Vision Fund has deployed over $70.7 billion in capital thus far, putting it far closer to the end of its capital runway than the beginning; that said, it’s notable that the Vision Fund 1 — a similarly-sized sibling waits in the wings — appears to be winding down its deal pace.
In its earnings report, SoftBank said the following, regarding the Vision Fund:
So while SoftBank says that it’s slowing down its dealmaking from the Vision Fund and the data agrees, there may be more coming.
Without SoftBank writing giant checks, it’s possible that upstarts that would have preferred to raise from the Vision Fund (1 or 2, really) would instead turn to the public to crowdfund, so to speak.