Shares in Japanese tech investor SoftBank fell following the announcement of a record loss at its Vision Fund tech investment unit.
SoftBank shares closed 3.7% lower in Tokyo on Friday after the company reported a staggering loss of 4.3 trillion Japanese yen ($32 billion) for the fiscal year ending on March 31, with investment losses at its Vision Funds totaling 5.28 trillion ($39.1 billion) Japanese yen.
The Vision Fund, established in 2017, made high-profile investments in tech firms but faced setbacks with some bets, including WeWork. The fund's exposure to Chinese tech companies also suffered due to Beijing's crackdown and subsequent share price drops.
SoftBank has halted startup investments, with Vision Fund investments dropping more than 90% to $3.14 billion.
The results are surprising given the overall recovery in technology valuations globally. Despite the recovery in the tech-heavy Nasdaq index in the US this year, SoftBank's fiscal year performance was still lower. To navigate these challenges, SoftBank has been selling stakes in Alibaba and Uber while adopting a more disciplined investment approach.
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