In May 2017, SoftBank announced the official launch of the Vision Fund — which promptly became the largest technology-focused investment fund in the world, with nearly $100 billion in capital under its management. Reports from a few months prior hinted that SoftBank was weighing a billion-dollar investment deal with WeWork, a commercial real estate company that specializes in shared office spaces. The official launch of the fund was proceeded by a series of multi-billion dollar investments in WeWork, eventually bringing the company’s post-money valuation to $42 billion. The development of the Vision Fund had key implications for the late-stage venture capital industry. Moreover, Soft Bank’s investments in WeWork raise important questions regarding investment decision-making, asset valuation, and issues surrounding corporate governance.
Keywords: Entrepreneurship; Venture Capital; Valuation; Corporate Governance;
Citation:
Gompers, Paul A., Patrick Sweeney, and Alex Gachanja. "WeWork—November 2018." Harvard Business School Case 220-075, April 2020. (Revised August 2020.) View Details