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SoftBank is suing portfolio company IRL after it admitted 95% of its users were fake. VCs are stressing the need for ‘uncomfortable’ due diligence (archive.ph)
submitted 3 years ago by [M, B] to c/technology@lemmy.world
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SoftBank is suing portfolio company IRL after it admitted 95% of its users were fake. VCs are stressing the need for ‘uncomfortable’ due diligence::undefined

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[–] 28 points 3 years ago (2 children)

I’ll be blunt: if a large bank is stupid enough to invest money in a company that’s basically vaporware, and they invest because they were far too lazy to do any real due diligence, that’s on the bank.

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  • [–] 16 points 3 years ago (2 children)

    Just to clarify, SoftBank is not a bank.

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  • [–] 7 points 3 years ago (1 child)

    Just to clarify: a "commercial bank" is like Bank of America, or Wells Fargo.

    An "investment bank" is like... Softbank. They pool money together of the rich and they all make massive bets on companies with their pooled money.

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  • [–] 2 points 3 years ago (1 child)

    That just makes it worse and totally deserved.

    "You had one fucking job!"

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  • [–] 2 points 3 years ago

    Softbank's explicit strategy on their "Vision Fund" was to bankroll their investments with so much money, that all other competitors lost.

    Its harmful to our economy and people need to recognize how targeted and how much of a dick-move this was for the last 10 years.

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