Prof G Markets: Peloton’s Management Shake-up, SoftBank’s Vision Funds, and Walmart’s Banking Play

Investment Failures

SoftBank's Vision Funds have been marked by significant failures, impacting its reputation in the investment world. Scott Galloway criticizes the Vision Fund's approach, likening its investment strategy to "a 15-year-old who had done their first hit of mushroom chocolates," highlighting the lack of coherence in their plans 1. Despite some successes in their core telco business, the Vision Fund's track record is marred by notable failures like WeWork and Greensill Capital, contributing to a $23 billion loss for SoftBank, with $17 billion attributed to the Vision Fund 1.

   

Future Prospects

The prospect of a third Vision Fund raises questions about SoftBank's future strategy. Scott expresses skepticism about the viability of Vision Fund Three, given the previous losses and the current downturn in venture capital funding 1. He notes that while VC funding has decreased by 40%, it remains robust compared to five years ago, suggesting a potential shift in the startup ecosystem 2.

It's great to be wealthy. You can be a hedge fund manager and never go out of business as long as you, as the founder, keep putting your own money in.

--- Scott Galloway

Scott anticipates a pullback in venture capital investing, as the asset class has overperformed and investors may reallocate funds away from venture capital 2.