SoftBank has flooded "disruptive" start-ups around the world with millions from its $100 billion venture capital fund. Those companies use the cash to attract contractors — then curtail or renege on their promises, leaving workers devastated. nyti.ms/2pV0sXv
Couriers with the Colombian delivery service Rappi say the start-up offloaded the physical risks of the job onto them and slashed wages. Hotel owners say the Indian hospitality start-up Oyo offered guaranteed payments if they upgraded their hotels, and then stopped paying. 
SoftBank is an emblem of a broader phenomenon known as "overcapitalization" — essentially, too much cash. The money allows start-ups to prioritize growth over profits and operate with little oversight. When costs have to be cut, contractors take the hit.
SoftBank's most public damage is evident at WeWork and Uber. But protests against start-ups it has funded have erupted on several continents. At a demonstration against the Indian ride-hailing company Ola in 2017, one driver set himself on fire and another drank poison.
The contractor model has come to define the last decade of start-up investing, and no investor has had more influence on the model than SoftBank. Its $100 billion venture capital fund is the largest in history, nearly 10 times larger than the runner-up.
When discussing earnings last week, SoftBank founder and CEO Masayoshi Son said he had "learned a lot of lessons, but no change in our strategy."
"We don't see any rough sea." nytimes.com/2019/11/12/tec…
"We don't see any rough sea." nytimes.com/2019/11/12/tec…
