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.
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