Softbank has put a lot of effort and money into WeWork with less takeaway than expected. That hasn’t stopped the Japanese conglomerate from investing in companies where it sees fit.
Earlier this year, WeWork postponed its IPO yet again, and SoftBank’s Vision Fund lost over $2 billion. Now, two companies are utilizing SoftBank’s help to successfully go public.
Along with DoorDrash, Opendoor is in the process of going public as one of SoftBank’s biggest investments, and through a merger with SPAC Social Capital Hedosophia Holdings Corp. II.
The SoftBank Vision Fund owns around 73 million shares of Opendoor, making its ownership an impressive 13.8% and could be up to 15% depending on the post-merger situation.
Opendoor is currently valued at $4.8 billion but due to the merger, boosting Social Capital’s own traded stock prices in preparation for the acquisition to close.
All of this has SoftBank’s current $400 million investment worth about $1.97 billion.
So with this raving success, SoftBank has bounced back from WeWork’s disappointing failure. Now, the investor is looking at Compass to continue its upward trajectory. Compass is looking for investors as it prepares for a 2021 IPO, after all.
SoftBank has helped Compass out a number of times, leading multiple funding rounds. For it to back Compass during rumors of Compass looking for interested investors, it’s not a shot in the dark that SoftBank won’t bite.