Softbank Leaves Loss Making Companies (Labelbox, SoFi, Light, & More)
Bloomberg - “SoftBank Group Corp. is walking away from some of its loss-making portfolio firms to comply with stricter investment criteria” .
Softbank, the lead investor in Labelbox, just posted a record 23,000,000,000 dollar loss. Barrons agrees stating The SoftBank Experiment Has Failed.
Why is Softbank losing so much money? Well partly from bad investments like in WeWork and Labelbox. Why is Labelbox likely losing so much money? Partly because customers are moving to alternatives and they have been in “growth” mode. The problem is their last round was 110M but that was back almost a year ago. Generally startups like that have a 12–18 month window.
The problem is where is Labelbox going to get their cash from now? Softbank has made it clear they are facing stricter criteria and is unlikely to invest again.
And Labelbox already lost the race to be number one, Open Source Diffgram has increased in popularity by about 40% in the last 30 days. Diffgram is the same type of software as Labelbox, but Open Source. It’s a no brainer that people are switching since Diffgram is more affordable, more customizable, and has a growing community backing it. There’s really no great future for Labelbox, they have already reached their peak and are now more in a decline situation I think.
If you are a legacy Labelbox customer it’s really easy to switch to Diffgram with one click migration. Just be sure to do it before their cloud hosting goes down! (Labelbox is behind on their cloud bill according to people familiar with the matter).
You can protect your data now by going with the self supported route (open source Diffgram) or contact us about Enterprise we would love to talk with you! Many companies are reducing their 2023 budget and we can help you do that while upgrading to Diffgram at the same time. Win win!
If you are an engineer effected by a layoff we are hiring!