Conference Presentation, Fireside Chat, Interview
Investing with Vision: A Conversation With SoftBank's Rajeev Misra
- The Vision Fund intends to double its workforce from approximately 400 to 800 employees over the next 18 months to accommodate portfolio expansion.
- Capital raising is planned to halt at a range of $85 billion to $90 billion to preserve funds for follow-on investments and preferred coupon servicing.
- Raising for the firm's second fund is expected to commence within the next few months.
- Global internet growth is predicted to plateau at 10% due to remaining offline populations in India and Africa.
- AI-driven platforms are forecast to disrupt every industry by reducing intermediation, lowering costs, and matching demand with supply.
- As platforms gain share, they will utilize AI for dynamic pricing of goods like vehicles and housing, alongside delivering highly customized consumer experiences.
- Thousands of autonomous vehicles are projected to operate in major Western cities by 2022 or 2023.
- Ownership of assets such as cars and homes is expected to decline in favor of co-living arrangements, altering city infrastructure and reducing the need for parking and retail space.
- The functionality of smartphones is anticipated to undergo a dramatic transformation comparable to their initial disruption 12 years ago.
- A rise in "dark kitchens" and 15-minute food delivery using parking lots as flexible spaces driven by real-time demand data is expected within the near term.
- Continued democratization of power is predicted to yield cheaper, higher-quality goods and services while maintaining low inflation.
- The firm targets annual returns of 25% to 30% on its portfolio, acknowledging that full investment maturity will take time.
- Three portfolio company IPOs are anticipated this year, with two additional IPOs expected next year.
- Some current market disruptors may face further disruption or re-enablement within a five to ten-year horizon.
- Investors generally seek an 8% rate of return, with some willing to accept 6%.
- Companies such as Grab and OYO are expected to utilize debt capital, noting rates of 6% to 7% as substantially lower than the 30% cost of equity.
- The cost of acquiring market share is predicted to rise significantly, potentially becoming ten times more expensive several years from now.