Japanese bank SoftBank reportedly scaled back its plans to invest in WeWork – the international co-working spaces beloved of tech-startups. The decision followed the recent hit to tech stocks, according to an exclusive in the Financial Times. SoftBank had originally discussed investing $16 billion into WeWork. That number is now thought to be $2 billion and SoftBank’s Vision Fund will not be involved in the deal.
The funding could be announced as soon as this week, according to one of the people, who added that the deal had not yet been agreed and could still fall apart. The scaling back of the planned $16bn investment, which would have been the largest ever in a tech start-up, underlines the rapid shift in investor enthusiasm for technology shares that is now spilling into even the best-known privately held groups.