Softbank Group is known for helping a lot of entrepreneurs with funding and resources to grow their businesses.
Unfortunately, for the past few months, it was not the case for Softbank due to prolong startup winter and the banking group has reported a quarterly loss of over $23 billion.
Masayoshi Son, founder and chief executive of SoftBank Group is concerned that the funding winter for startups may continue for longer than expected.
“Unicorn companies’ leaders still believe in their valuations and they wouldn’t accept that they may have to see their valuations [go] lower than they think,” said Son.
“So until the multiple of listed companies is lower than those of unlisted companies, we should wait,” said Son, referring to a popular way investors assign value to firms. He said the winter for publicly listed companies is still continuing, but a similar downturn for startups may last “longer.”
“Churning around businesses isn’t something we should do. Rather we may give advice and suggestions to deliver synergies,” he said.
“Now seems like the perfect time to invest when the stock market is down so much, and I have the urge to do so, but if I act on it, we could suffer a blow that would be irreversible, and that is unacceptable,” Son concluded.
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