Nothereformoney, want to change the future, says Son

SoftBank Group, which achieved 43% compounded internal rate of return (IRR) in the past two decades due to its long-term view on risk-taking entrepreneurs, is now more interested in “changing the future” by betting big on risk-taking technology entrepreneurs who are building new businesses, chairman Masayoshi Son said on Friday.

“I don’t care if the interest rates change a few percentages or if the currency exchange rate changes a few percentages. If you are growing 43% compounded IRR every year, that ( interest rates, currency exchange) is just a minor error,” Son at the InFinity Forum 2021.

Son’s remarks come against the backdrop of SoftBank Vision Fund’s recent earnings, which have been volatile.

It reported a $10 billion loss in Q2FY22 on the back of the

Chinese government’s crackdown on tech companies after it reported a $6.9 billion profit in Q1FY22, which was 39% lower than the profits reported in the corresponding quarter of the previous year.

Meanwhile, the $100 billion SoftBank Vision Fund reported a record $36.99 billion in profit for the financial year ended March 2021, after a record $18 billion loss in the previous fiscal.

Son’s overarching theme was that the group is “not trying to make money”.

“We are trying to change the future, taking risk together with entrepreneurs. There are so many great entrepreneurs of new technology business models. I would like to support them by providing the risk capital... We are maybe crazy enough to believe their vision. Sometimes we lose the money, but sometimes we get great returns. Overall, our returns are more,” Son said.