Daddy dog and Mr Son’s 300 year vision for Softbank

[:en]This week, I have been thinking about a famous white dog and his company’s plan for the next 300 years.

The dog has an unusual name: Otosan, which means “father.” He’s the mascot of Softbank, founded by the hugely ambitious Masayoshi Son. He is Japan’s richest man and its best communicator.

The dog is a fluent Japanese speaker, too and can also play baseball and golf. He frequently wears sunglasses.
I am delighted to be invited to speak about Mr Son and Otosan the dog at a big event in London this June called the Internet of Manufacturing conference.

If you would like to come along and hear the talk, please send me a message.

Softbank is not a bank

The first thing to say about Mr Son’s company, Softbank, is that it is not a bank – it’s a technology conglomerate which is rapidly expanding into many fields, including insurance and financial services.

I am grateful to a reporter called Landon Thomas Jr. for his article in the New York Times in which he draws attention to a presentation slide deck used by Mr Son in 2010. It’s a splendid deck of images – brimming with emotion and bright pictures – and it reveals that Mr Son has a growth strategy designed to carry Softbank forward for 300 years.

Like all the best slide decks, it uses clear images and simple words to help people connect with the key points. It shows that Mr Son sees himself as harnessing the digital revolution based on artificial intelligence and big data.

Mr Son’s philosophy is written on one of the slides: “Endeavouring to benefit society and the economy and maximise enterprise value by fostering the sharing of wisdom and knowledge gained through the IT revolution.”

That reminds me of many mission statements in Japan, where companies put their social goals ahead of their duties towards customers, staff or shareholders.

Shareholder joy

Nevertheless, shareholders have done well. Softbank Corporation’s shares are listed on the Tokyo Stock Exchange and the New York Times points out that a 10-year investment in those shares would have outperformed the Nikkei index by yielding a return of around 300%. There are reports that Softbank may now be preparing to list parts of the company in London.

London is where Rajeev Misra, who heads the Vision Fund which handles Softbank’s investments, is based. He’s a top Wall Street financier who used to work for Deutsche Bank.

The fund is ready to invest $100 billion dollars. “Our desire is to see more deals in Europe,” Mr Misra told CNBC earlier this year. While the Vision Fund has invested heavily in the US, India and Asia, Europe remains something of a blank spot.

Having said that, when it does splash out in Europe, it has plenty of money to spend and it sometimes ends up investing in organisations which you might find surprising. Last year it led a $500 million investment in a virtual-reality startup called Improbable Worlds, based in London.

Since then, Mr Son has been on an investment spree globally and SoftBank was involved in more than half of the ten biggest venture capital deals around the world last year.

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