1 / 13

Softbank: Visionary Entrepreneurship in Japan

Softbank: Visionary Entrepreneurship in Japan. Maria Metzger Xiuping Li David Harelick David Grosof. Agenda. Size Makeup Recent News Leadership Early History Middle Ages Strengths Issues Emerging Market Strategy Conclusion. Size. Worth approximately $18BB

gabby
Download Presentation

Softbank: Visionary Entrepreneurship in Japan

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Softbank: Visionary Entrepreneurship in Japan Maria Metzger Xiuping Li David Harelick David Grosof

  2. Agenda • Size • Makeup • Recent News • Leadership • Early History • Middle Ages • Strengths • Issues • Emerging Market Strategy • Conclusion

  3. Size • Worth approximately $18BB • 300 companies and affiliates

  4. Makeup • Financing value chain • Hotbank • Softbank Capital Partners • $1.25 billion later-stage fund. • Softbank Venture Capital (SBVC) • $2 billion under our management • US Venture Managers • Rieschel on the West Coast • Charley Lax in Boston

  5. Recent News • Cisco invests $1BB in a Softbank fund • Cisco to purchase back Japanese subsidiary • Raising $4BB+ for broadband buildout • Fighting the entrenched NTT

  6. Leadership • Masayoshi Son, CEO (43) • Son’s share of Softbank is worth apx. $7 billion • charismatic, visionary • born in Japan, of Korean ancestry • immigrated to the SF as a teenager • University of California at Berkeley • made his first million inventing a multilingual pocket dictionary and translator • Sold to Japan's Sharp Corp • named Forbes Businessman of the Year in 2000

  7. Dawn of Son • Son Founded the Softbank Corp in 1981 in Japan • Established product-distribution channels for PC and game software • JV with Novell, Cisco Systems, and Microsoft • Late 80s/early 90s, entered many new IS markets • publishing, network services & information delivery • Went public in 1994 • Son retaining > 50 percent of the equity

  8. Son Rises • Made many “strategic” acquisitions • Ziff-Davis' worldwide exposition business • Comdex • Ziff-Davis Publishing Co. itself • 2% cost of capital from Japanese Banks • arbitraging the higher P/E rates of Japanese companies • Early Venture Investing • MediaBank Corp. - 1994 JV with NTT • video on demand and Internet services in Japan • Early investor in Yahoo! • CyberCash & E*Trade Group Inc.

  9. Strengths • Focused on Internet content and services • Ignored hardware and never challenged the big 3 • Microsoft, Intel, Cisco • Lower-risk porting of US-style business models to other markets

  10. Issues • Value fell 90% Between 2/00 and 12/00 • 49% stake in Nippon Credit Bank • one of Japan's “most corrupt & badly managed banks” • risky assets of $35 billion • Mitigant: Government backing • Launched Nasdaq Japan during tech-stock slump • Japanese broadband access initiative is weak • A few years ago Softbank in financial distress • threats of delisting, loan calls, accounting irregularities • Poor investments • Kingston Technology, Ziff-Davis, 3-D chat, etc.

  11. Emerging Market Strategy • Telecom infrastructure in emerging markets • Partnering with the World Bank • strong government relationships • Leveraging their Netbatsu’s conglomerate power • Immaturity of their capital markets • importance of politics/regulation • Partnering with Murdoch’s News Corporation in the UK, Australia, New Zealand and India

  12. Conclusion • Working hard to open Japan's ossified capital markets to a new generation of entrepreneurs • They entrepreneurs may transform the Japanese economy • Even if Softbank fails, the genie has been unleashed

  13. Haikus • Softbank is new way • A stone thrown into a still pond • Soon Nippon reshapes. • New kid on the block • Old boys are nervous and scared • Information Rules.

More Related