
SoftBank: You Fuck a Goat Once - randombird
https://medium.com/@abyshake/you-f-ck-a-goat-once-7ba42cf9b81f
======
randombird
A lot has been said about WeWork this past couple of months, and about the bad
investments SoftBank has allegedly made. The actual problem, IMO, is worse
than that.

~~~
randombird
The whole point is that you look at any of the investments SoftBank has made
in the past 2 years, and it is the same pattern. \- The startup is at a modest
valuation pre-entry of SoftBank. \- SoftBank enters in a round and
intentionally makes it substantially larger than any of the previous rounds,
and at a good valuation (Please note: A lot of times, even the founders were
not hoping for a round of this size) \- SoftBank reinvests in a follow-up
round... Even larger round...Ridiculously high valuation. \- Is the company
growing? Of course it is. With the kind of cash they have to fuel growth, it
would be insane if they didn't... But is it growing in a way that supports the
valuation growth curve? Highly doubtful.

So the question we are left with is Why?

And then, there is SoftBank's complete "nothing to see here" approach to gross
misuse of the funds the startups have raised. A lot of founders have borrowed
HUGE sums of money from the companies - using the money that was supposedly
invested for growth of the company.

------
throwGuardian
This kind of shock-bait headline doesn't even deserve a one-time click.

~~~
randombird
Noted. Corrective measures will be taken. Thanks.

