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Jakarta Post

Venture capitalists learn lessons from Softbank’s big loss

  • Riska Rahman

    The Jakarta Post

Jimbaran, Bali   /   Mon, November 18 2019   /  01:53 am

Venture capitalists are getting more cautious about investing in start-up firms as they now require start-ups to present a clear path to profitability following Softbank’s loss from its investment in We Work.Next Indonesia Unicorn (NextICorn) Foundation chairman Daniel Tumiwa told the press on Wednesday that many venture capitalists were now holding off on investing in start-ups as they wanted to ensure that their investment would earn profits following the Japanese conglomerate holding company’s loss in the third quarter of this year.Softbank suffered a US$8.9 billion loss from July to September, its first quarterly loss in 14 years. This was due to what chief executive officer Masayoshi Son referred to as “poor investment judgment” as it turned a blind eye to problems, such as corporate governance, at American workspaces-sharing firm WeWork, Reuters reported on Nov. 5. SoftBank...