acf/google-ad-placement

<p>Brandless, an&nbsp;online store&nbsp;backed by <strong>SoftBank Group Corporation</strong> <span class="ticker"
                data-ticker="SFTBY"
                data-exchange="OTC"
                style="display: inline-block;">SFTBY</span> that sold household goods for $3 each is <a href="https://www.cnbc.com/2020/02/10/softbank-backed-brandless-to-lay-off-staff-shutter-operations.html">shutting down</a>.</p>

<h3><strong id="docs-internal-guid-12208d4f-7fff-d339-6afc-339aebaed344">What Happened</strong></h3>

<p>Brandless, based out of San Francisco, will wind down operations. The company is the first SoftBank Vision Fund-backed startup that has shut shop as it lays off 70 people. It has been <a href="https://www.protocol.com/softbank-brandless-shuts-down">reported</a> that ten&nbsp;employees would stay on board to process any remaining orders and &ldquo;evaluate any acquisition offers.&rdquo;</p>

<p>The direct-to-consumer company, which began operations in 2017, released a statement on their <a href="https://brandless.com/">website</a>, &ldquo;While the Brandless team set a new bar for the types of products consumers deserve and at prices they expect, the fiercely competitive direct-to-consumer market has proven unsustainable for our current business model.&rdquo;</p>

<h3><strong id="docs-internal-guid-12208d4f-7fff-d339-6afc-339aebaed344">Why It Matters</strong></h3>

<p>Brandless <a href="https://www.bloomberg.com/news/articles/2018-07-31/brandless-is-battling-amazon-with-240-million-from-softbank">was&nbsp;funded</a>&nbsp;by SoftBank&rsquo;s $100 billion vision fund out of&nbsp;$240 million in total fundings. TechCrunch, citing a source close to the company, revealed that<a href="https://techcrunch.com/2020/02/10/softbank-backed-brandless-shuts-its-doors-for-good/"> less than half</a> of that amount actually made it to the company. The&nbsp;fund has backed or purchased numerous startups like Slack, Uber, Zume, Wag, and WeWork.&nbsp;</p>

<p>It has invested&nbsp;over <a href="https://www.japantimes.co.jp/news/2019/12/09/business/corporate-business/softbank-wework-investment/">$14 billion</a> into WeWork, a co-working space startup whose <a href="https://www.benzinga.com/news/19/12/15052026/the-best-and-worst-ipos-of-2019">IPO failed</a>. The startup suffered from <a href="https://www.benzinga.com/news/19/11/14835793/wework-faces-another-investigation-over-neumann">disastrous leadership</a> of its former CEO and co-founder Adam Neumann who engaged in illegal practices such as charging the company $6 million for the &ldquo;We&rdquo; trademark and borrowing from the company at little to no interest.&nbsp;</p>

<p>SoftBank CEO Masayoshi Son&rsquo;s judgment was&nbsp;<a href="https://www.benzinga.com/news/earnings/19/11/14800543/is-softbanks-son-apology-for-poor-investments-genuine-or-due-to-pressure">questioned</a> in the past, and he has had to apologize for his track record. Son expressed his regrets <a href="https://www.reuters.com/article/us-softbank-group-son/softbank-ceo-masayoshi-son-says-embarrassed-and-flustered-by-track-record-nikkei-business-idUSKBN1WM0LD">saying</a>, &ldquo;I include myself when I say it is not the time for Japanese entrepreneurs to be making excuses.&rdquo;</p>

<h3><strong id="docs-internal-guid-12208d4f-7fff-d339-6afc-339aebaed344">Price Action&nbsp;</strong></h3>

<p>SoftBank shares traded at $46.78 at press time in Tokyo on Tuesday, higher by 1.50%. The OTC shares closed at $23.54 higher, with a&nbsp;1.64% increase on Monday.</p>

<p><em>Photo Credit: Courtesy of Brandless&nbsp;</em></p>


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