SoftBank Group Corp.-backed Light is struggling to raise funds after the world’s largest tech investor balked at putting more money into the startup, people familiar with the matter said.
SoftBank owns about 30% of Light through its first Vision Fund, which led an injection of $121 million (¥15.4 billion) into the advanced camera developer in 2018. SoftBank’s continued support is critical for the cash-strapped startup, which had been spending millions of dollars to expand into self-driving tech at SoftBank’s urging.
Hurt by plunging tech valuations, SoftBank is walking away from some of its loss-making portfolio firms to comply with stricter investment criteria, said the people, who asked not to be identified because the matter was not public. Many of the two Vision Funds’ portfolio of 300-plus companies are loss-making.