Softbank sells shares of dog walking service "Wag" invested 32.5 billion yen
by Matt Nelson
Softbank's startup for a dog walking agency service that it ownedWag LabsAgreed to sell the company's shares to the company and found that it was raising funds from Wag. In January 2018, Softbank invested 300 million dollars (about 32.5 billion yen) in Wag through a fund managed by its own company, attracting attention because it invested heavily in very small startups It was.
SoftBank sells stake back to Wag
SoftBank gives up on dog-walking startup Wag after investing $ 300 million-CNN
“ Wag! '' Developed by Wag is a service that matches the dog owner and “ dog walker '' who takes the dog for a walk through a smartphone application, and from its business model “ Dog'sUberWas called. In January 2018, Softbank invested $ 300 million in Wag through a "Softbank Vision Fund" of $ 100 billion (approx. ¥ 11,160 billion) operated by the company. At this time, Softbank estimated Wag's corporate value to be about 650 million dollars (about 70.6 billion yen), and it was still small and highly rated Wag, which was badly reputed for occasionally missing dogs It attracted attention.
However, Wag's business is "pet versionAirbnbWas preceded by the same type of serviceRover.comIn October 2019,Looking for salesAnnounced. In addition, in November 2019, Hilary Schneider, who assumed the position of CEO at the same time Softbank invested in Wag, resigned, and Garrett Smallwood, vice president of corporate development, will be replaced. Became clear.
The successor Smallwood said on December 9th in an email addressed to employees: “We said goodbye to Softbank and we are no longer involved in managing Wag. Thank you for the support of our vision fund, "he said, and that he has agreed to buy back Wag shares from Softbank. The amount of this transaction is not clear, but the negotiated amount when Wag was looking for a sales person was said to be less than $ 300 million, and the sale amount by Softbank is also considered to have cut the acquisition amount The
It has also been shown that Wag is dismissing large-scale employees for reasons of streamlining management. The specific number of employees who are subject to dismissal is unknown, but from a document submitted to the California Department of Employment Development, WagWest HollywoodIt is known that the office that had been in the office will be temporarily closed, and more than 90 people are expected to be affected.
In 2018, SoftBank invested 3 billion dollars (about 320 billion yen) in the coworking space provision service “ WeWork '', but WeWork failed to raise funds and the CEO resigned, and the initial public offering ( IPO) has been forced to give up.
American news mediaCNBC“Softbank has previously invested heavily.WeWork“ The majestic glory and erosion of the company led to the decision to curb Softbank Vision Fund's high-risk strategy, '' he said, saying that Softbank's repeated investment failures were a cause of this withdrawal. Showed.