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Unicorns and startups need to prepare for a longer financing winter, says Masayoshi Son. from SoftBank

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Masayoshi Son, founder and CEO of the Japanese investment group soft sofaMonday warned unicorns and startups to prepare for a hard and longer winter financing ahead as the company posted disastrous results for the second quarter in a row this year.



In the earnings call after reporting a net loss of $23.4 billion in the June quarter, Son said unicorn leaders “still believe in their valuations and wouldn’t accept that they may have to see their valuations drop lower than they think”.

The winter for publicly traded companies is still ongoing, but a similar downturn for startups could last “longer,” the 64-year-old executive warned.

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“This seems like the perfect time to invest now that the stock market is so low, and I have the urge to do that, but if I trade on it, we could take a blow that’s irreversible, and that’s unacceptable.” Son stressed.

The company said the net loss in the June quarter was “mainly recorded by monetization of investments in public portfolio companies.”

Son advised companies to save cash to navigate the economic collapse.

“The world is in great confusion,” he said.

When it comes to startups, Softbank invested more than $46 billion in startups last fiscal year.

SoftBank’s $100 billion Vision Fund was launched in 2017 and is backed by Saudi Arabia and Abu Dhabi.

Son said in May that compared to last year, “the amount of new investment (in startups) will be half or could even be a quarter”.

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