SoftBank $73 Billion Success Kickstarts Japans Startup Investment.
With SoftBank Corp recent success with their huge gains made from investments, competitors have been prompted to set aside funds for venture capital investments. Companies like KDDI Corp, NTT Docomo as well as firms like Sony Corp and Nissan Motors, Bloomberg reported.
The success of SoftBank Corp, fueled in part by the huge gains it has made on investments, have prompted competitors like KDDI Corp, NTT Docomo as well as other firms like Sony Corp and Nissan Motor to set aside funds for venture capital investments, Bloomberg reported.
The business had been established back in 1981 by Masayoshi Son, and has gained a market value of $99 billion because of the return invesments it has gained from firms like the China-based e-commerce firm Alibaba Group Holdings. Due to the fact that the billionaire wireless carrier now holds claim of over 1,300 technology business, it has made it far more valuable then its competitors, like KDDI Corp and NTT Docomo, even if they managed to surpass SoftBank in terms of subscribers. Softbank had invested over $20 million into Alibaba.com some fourteen years ago, which has allowed SoftBank to claim 37% of the e-commerce firm, that is currently preparing for an IPO in the US,
Value and Growth
Data collected from sources like Bloomberg have shown that Alibaba is now worth over $153 Billion. This value has lead toward SoftBanks claim to be valued for over $56 billion, which represents 2,800 more then what was originally invested into the company.
SMBC Nikko Securities Inc Analyst Satoru Kikuchi told Bloomberg News, “Son’s success has provoked Docomo and KDDI. They are probably finding it hard to keep up with his moves.”
With this recent success for Softbank and the wireless market in japan starting to saturate, both KDDI and Docomo have begun to search for startups to lead the way for reviving innovation and growth,