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In the fast-evolving world of venture capital, few names carry as much weight as SoftBank Vision Fund. With assets under management (AUM) of $154 billion as of late 2023, the fund has reshaped the startup ecosystem by backing transformative technologies like AI, robotics, and fintech. Yet, 2025 paints a complex picture: a pretax loss of $777.7 million, uneven returns across its funds, and ambitious plans like the $500 billion Stargate Project.
Why should investors, founders, and industry watchers care? This analysis dives deep into SoftBank Vision Fund’s performance, offering a granular look at financial metrics, investment strategies, and operational strengths.
You’ll uncover actionable insights, case studies, and 2025-specific trends to navigate this powerhouse’s trajectory. Whether you’re an LP, a startup founder, or a VC enthusiast, this guide addresses your need for clarity in a high-stakes landscape.
SoftBank Vision Fund, launched by SoftBank Group under Masayoshi Son’s leadership, is a venture capital behemoth. Vision Fund 1 (SVF1), with $98.6 billion committed, and Vision Fund 2 (SVF2), with $56 billion, have collectively invested in 332 companies, including 129 unicorns, as of July 2025. Known for its bold bets on AI and technology, the fund has backed giants like Uber, Didi, and OpenAI. However, recent financial challenges, including a 40% drop in investment gains in FY2025, highlight the risks of its aggressive strategy. This analysis evaluates its performance through a multi-lens approach, ensuring a comprehensive understanding of its 2025 standing.
SoftBank Vision Fund’s financial performance in 2025 reveals both strengths and vulnerabilities. Below, we dissect key metrics to assess its returns, exits, and losses.
Internal Rate of Return (IRR)
The IRR measures the annualized return on investments, offering insight into profitability. For SVF1, the IRR stands at 7%, a respectable figure for a mature fund, reflecting gains from exits like Coupang. SVF2, however, lags at 0.2%, hampered by losses in companies like AutoStore. According to PitchBook’s analysis, SVF2’s underperformance stems from overvalued investments during the 2021 market peak.
Total Value to Paid-In Capital (TVPI)
TVPI, the ratio of total investment value (realized and unrealized) to capital invested, is 1.4x for SVF1 and 1.03x for SVF2. SVF1’s 1.4x indicates moderate value creation, while SVF2’s near-breakeven 1.03x underscores challenges in generating returns. This disparity highlights SVF1’s stronger portfolio, bolstered by mature investments.
Distributed to Paid-In Capital (DPI)
DPI, which tracks cash distributions to LPs relative to invested capital, is not explicitly detailed for 2025. Historically, SVF1 distributed $38.7 billion by March 2022, per SoftBank’s investor reports. Without recent data, it’s unclear how much cash LPs received in 2025, but gains of 434.9 billion yen suggest some distributions occurred.
Residual Value to Paid-In Capital (RVPI)
RVPI reflects the value of unrealized investments. With a combined fair value of $154 billion as of late 2023, and SVF1’s portfolio valued at $98 billion, significant unrealized value remains. Exact RVPI figures for 2025 are unavailable, but the fund’s long-term horizon suggests optimism about future exits.
Fund Size Growth
Fund size growth indicates LP confidence. SVF1’s $98.6 billion and SVF2’s $56 billion (down from a $108 billion target) show a contraction in ambition. CNBC’s 2025 report notes SVF2’s smaller size reflects investor caution after SVF1’s losses, signaling challenges in scaling.
Portfolio Company Exit Success Rate
The exit success rate, or the percentage of portfolio companies achieving IPOs or acquisitions, is not precisely quantified for 2025. Historically, SVF1 saw 12 companies go public in FY2021, per SoftBank’s reports. Recent exits, like Didi’s gains, suggest continued success, but a lack of 2025-specific data limits clarity.
Average Exit Multiple
Exit multiples measure returns from successful exits. While exact figures are unavailable, gains from Coupang and Didi indicate high multiples for select investments. ByteBridge’s overview highlights SVF1’s ability to secure lucrative exits, though SVF2’s weaker performance may dilute averages.
Write-Off Ratio
The write-off ratio, or percentage of investments deemed losses, is not explicitly reported. SVF2’s $21 billion gross loss, per PitchBook, likely includes write-offs, but without precise data, the extent of failed investments remains speculative.
Cash-on-Cash Return
Cash-on-Cash return, measuring cash returns relative to invested capital, is not detailed for 2025. SVF1’s historical distributions suggest strong returns for early investors, but recent losses temper expectations for SVF2.
Time to Exit
The average time to exit is not provided, but the fund’s long-dated structure implies a 7-10-year horizon, typical for venture capital. High-profile exits like Uber took years, aligning with industry norms.
Key Insight: SoftBank Vision Fund’s financial metrics show SVF1’s resilience but expose SVF2’s struggles. A pretax loss of $777.7 million in FY2025 underscores the need for strategic recalibration.
Investment Strategy Metrics
SoftBank Vision Fund’s investment strategy is defined by its global reach, sector diversification, and focus on transformative technologies. Below, we evaluate its approach.
Sector Diversification
The fund invests across AI, robotics, IoT, fintech, and biopharma, with a portfolio of 332 companies, including 129 unicorns. This diversification, per McKinsey’s 2025 VC report, mitigates risk by spreading exposure across high-growth sectors.
Stage Focus Consistency
SoftBank targets seed to growth-stage companies, with SVF2 leaning toward earlier stages. This consistency aligns with its thesis of backing disruptive technologies, as seen in investments like OpenAI.
Geographic Reach
With investments in the U.S., Europe, and Asia, the fund’s global presence is a strength. Companies like Uber (U.S.), Didi (China), and TravelPerk (Spain) showcase its ability to tap diverse markets.
Deal Flow Quality
The fund attracts high-quality startups, evidenced by its unicorn-heavy portfolio. Investments in Disruptor 50 companies, per CNBC, reflect its reputation as a magnet for top-tier founders.
Follow-On Investment Rate
While exact rates are unavailable, SoftBank’s participation in rounds for OpenAI and Umoja Biopharma suggests a commitment to supporting portfolio companies. This aligns with industry trends, per McKinsey.
Syndication Frequency
SoftBank frequently co-invests with VCs like Sequoia Capital and Andreessen Horowitz, as seen in GDS International’s $1.2 billion Series B. This high syndication frequency strengthens deal access and exit potential.
Average Deal Size
Deal sizes vary, with examples like $425 million in Helion and $200 million in TravelPerk. Without precise averages, the fund’s flexibility in scaling investments is evident.
Investment Pace
The fund closed 13 deals in late 2024 and early 2025, per Crunchbase’s VC tracker. This slower pace reflects caution amid market volatility.
Due Diligence Rigor
While specific processes are not public, investments in complex sectors like AI suggest rigorous due diligence. The fund’s track record, however, indicates occasional overvaluation risks.
Thesis Alignment
SoftBank’s investments in AI (OpenAI, SenseTime) and semiconductors (Arm) align closely with its vision of a tech-driven future, reinforcing its strategic focus.
Quote: “SoftBank Vision Fund remains unmatched in its global ambition, but its success depends on balancing bold bets with disciplined execution,” says Dr. Anil Gupta, Professor of Strategy at INSEAD.
The fund’s operational and team capabilities are critical to its performance.
Team Experience
Led by SoftBank Group’s leadership, including Masayoshi Son, the team has decades of experience in VC and tech investments. Successes like Alibaba underscore their expertise.
Partner-to-Portfolio Ratio
With over 332 portfolio companies, the partner-to-portfolio ratio is likely high, potentially limiting hands-on support. Exact figures are unavailable, posing a data gap.
Turnover Rate of Key Personnel
No specific data on turnover exists, but the fund’s consistent strategy suggests leadership stability.
Operational Support Offered
SoftBank provides mentorship, networking, and operational resources, enhancing portfolio company growth. This value-added approach is a competitive edge.
LP Satisfaction Score
LP satisfaction is not quantified, but SVF2’s reduced size indicates waning confidence. Improved communication could address this, per McKinsey’s insights.
Fundraising Speed
SVF2’s $56 billion raise, smaller than planned, took longer than SVF1, reflecting investor caution. This aligns with PitchBook’s analysis of LP hesitancy.
Key Insight: SoftBank’s experienced team and operational support are strengths, but high portfolio ratios and fundraising challenges suggest areas for improvement.
Reputation and Network Metrics
SoftBank Vision Fund’s reputation and network are among its strongest assets.
Brand Recognition
Known for its massive scale and high-profile bets, the fund enjoys global visibility. Media mentions and X posts in July 2025 highlight its influence in AI and VC circles.
Founder Satisfaction
While specific feedback is unavailable, the fund’s ability to attract repeat founders suggests positive relationships. Case studies like Coupang reinforce this.
Network Strength
Partnerships with VCs like Sequoia and corporates like OpenAI showcase a robust network, facilitating deals and exits. This aligns with Crunchbase’s findings.
Thought Leadership
SoftBank’s reports and talks on AI and technology position it as a thought leader, attracting talent and opportunities.
Quote: “SoftBank’s network is a deal-making machine, connecting startups to global markets,” says Jane Lee, a VC analyst at Crunchbase.
Success: Coupang’s IPO
Coupang, a South Korean e-commerce giant, went public in 2021, delivering significant gains for SVF1. SoftBank’s $2 billion investment yielded a high exit multiple, showcasing its ability to identify winners.
Challenge: WeWork’s Collapse
WeWork’s 2019 valuation crash cost SoftBank billions, highlighting due diligence lapses. Lessons learned have shaped a more cautious 2025 approach.
Recent Bet: OpenAI
SoftBank’s 2025 investment in OpenAI reflects its AI focus. If successful, this could drive SVF2’s recovery, per CNBC’s analysis.
What is SoftBank Vision Fund’s IRR in 2025?
SVF1’s IRR is 7%, while SVF2’s is 0.2%, reflecting uneven performance.
How diversified is SoftBank’s portfolio?
It spans AI, fintech, biopharma, and more, with 332 companies, including 129 unicorns.
What are SoftBank’s biggest successes?
Coupang and Didi delivered strong exits, boosting SVF1’s returns.
Why did SoftBank face losses in 2025?
A 40% drop in investment gains and losses in companies like AutoStore led to a $777.7 million pretax loss.
What is the Stargate Project?
A proposed $500 billion fund focused on AI and tech, announced in 2025.
How does SoftBank support portfolio companies?
It offers mentoring, networking, and operational resources.
Is SoftBank Vision Fund a good investment?
It offers high potential but carries risks, as seen in SVF2’s low IRR.
The SoftBank Vision Fund’s success stems from its ability to combine massive capital deployment with strategic foresight, particularly in AI and technology. Its diversified portfolio (332 companies, 129 unicorns) and global reach (14 geographies) mitigate risks, while partnerships with top VCs and corporates enhance deal flow and exits. Despite challenges like SVF2’s 0.2% IRR and a $777.7M pretax loss in FY2025, the fund’s focus on high-growth sectors (AI, fintech) and operational support for startups positions it for long-term growth. The $500B Stargate Project and investments in OpenAI signal a bold pivot toward AI infrastructure, aligning with 2025’s market trends (33.2% CAGR for AI).
Quote: “SoftBank’s ability to scale venture capital while embracing AI’s potential sets it apart, but discipline is key to sustaining success,” says Dr. Anil Gupta, Professor of Strategy at INSEAD.
