$100 million investment in FTX by SoftBank
Specifically, many individuals are asking exactly how should so many high-profile investment firms pour in an aggregate $2 billion with evidently so minimal reasonable level of effort.
The famous Japanese investment combination SoftBank, for instance, is only one of many such firms that upheld FTX after the startup raised a $400 million funding round in January, valuing the organization at a staggering $32 billion. SoftBank, which invested as a component of its Vision Asset 2, uncovered days prior that it sunk just shy of $100 million into the organization. That investment is currently discounted to zero with SoftBank saying "it wouldn't confront a material markdown in the worth of its stake," according to MarketWatch.
Obviously it's not whenever SoftBank first has made an, er, mistake in judgment with regards to its investment. It (in)famously emptied somewhere around $18.5 billion into WeWork, which alongside its prime supporter Adam Neumann, fantastically went wrong.
SoftBank likewise put cash in Katerra, a development tech startup that likewise consumed more than $2 billion in funding prior to shutting down in June 2021. The firm likewise lent $100 million to blood testing organization Theranos in 2017 through a confidential value arm. Furthermore, it likewise siphoned $500 million into advanced contract bank Better.com prior to signing up to co-lead its never appeared SPAC. That organization has been the subject of different outrages over the course of the last year and has been struggling even with rising home loan interest rates, an eased back housing business sector and unstable Chief.
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