The Fund of Funds
SoftBank is in talks with potential Canadian pension funds, sovereign wealth funds in Kuwait and Qatar and tech firms to raise a further $7 billion in capital for its $100 billion Vision fund. According to news reports, SoftBank's Vision Fund will charge a performance fee of 20% and a management fee of 0.5% to 1% as opposed to private equity firms that typically charge 2% of the assets they oversee and 20% of profits.
The first round of capital commitments for the Vision fund was agreed last month. With a huge fund for tech investments, Masayoshi Son's Softbank has enough capital to accelerate investments in cutting-edge tech and startups. This will probably mean huge investments in a small number of tech startups but possibly also some smaller investments in other startups that show potential. Tech in the hands of a few VC fund managers.