CNBC Television SoftBank Vision Fund Chief Rajeev Misra speaks out
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CNBC’s Alex Sherman joins “Squawk Box“ to discuss his phone interview with Rajeev Misra, the head of SoftBank’s $100 billion Vision Fund.
Rajeev Misra, the head of SoftBank’s $100 billion Vision Fund, has had a rough six months.
It started with WeWork’s aborted IPO in September. That caused SoftBank and the Vision Fund to lose billions of dollars and raised questions about the firm’s once-hyped investment strategy. Then came the downward spiral of other portfolio companies, including Wag, Oyo and the robot pizzeria Zume. That was followed by Misra’s failure to raise new money for Vision Fund 2, a venture that SoftBank founder Masayoshi Son had said would reel in $108 billion.
Add to that a slew of brutal stories detailing workplace problems at the fund that has led some high ranking employees to leave and unflattering stories of Misra’s alleged smears of other high-ranking SoftBank executives -- including an alleged attempt to photograph former SoftBank president and current Palo Alto Network CEO Nikesh Arora with a woman or women in a hotel room -- and it’s easy to see why the 58-year-old former investment banker feels like he’s under attack.
Misra has been largely silent on the subject — until now. In a phone interview last week with CNBC, Misra said he needs the benefit of time to disprove his critics and vindicate the Vision Fund’s big money bets across the global tech start-up market. He predicts that of the 90-plus companies in the portfolio, there will be dozens of IPOs in the next 18 months and he says that over the next 24 months, “I guarantee you will see the outcome of our investments will change.”
“We’ve made many mistakes, which is normal,” Misra said from the Vision Fund’s London headquarters. “We learn from our mistakes and are incorporating what we learn back into our process as we embark on Vision Fund 2.”
It’s a bold, bet-your-career sort of prophecy from Misra after a three-year stretch where the Vision Fund deployed record amounts of cash into start-ups, inflating valuations into the stratosphere and encouraging founders to think bigger, act crazier and annihilate their competitors. In some cases, the Vision Fund invested in direct rivals — Uber and DoorDash, for example — leading both companies to aggressively burn cash to keep up with the other on customer acquisition, market expansion and recruiting top talent.
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