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Softbank is reportedly withdrawing its investment from struggling Dog-walking start-up Wag

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Dog-walking startup Wag

We know that if there is one company that is in the news of business these days than that is Softbank. If you have not heard about Softbank, it is a Japanese conglomerate which also has a vision fund to invest in startups. We have seen Softbank invest in various companies till date such as PayTM, WeWork, Uber, and various others. Now, it is also a fact that not every investment from Softbank will turn out to be good as we have seen in the case of WeWork, Uber and others. However, it is also not the case that the company invests in startups that they feel will fail in a short time.

Now, one of the companies that should be worried about its future is a dog-waling startup named Wag. This is because Softbank’s Vision fund had made investments in the startup back in 2017. However, the conglomerate has now given up on its investments from the startup and has also given up on its board seats and other commitments according to a report from CNBC. It is also being said that Wag’s CEO has sent an internal memo to its employees regarding the withdrawal from Softbank.

Dog-walking startup Wag

As per the report, the memo has been accessed by CNBC and Wag’s CEO notes that “We are amicably parting ways with SoftBank and SoftBank will no longer have Board representation,”. He adds that “We thank the Vision Fund for their support in the company to date”. Apart from the memo, it is also being reported that there might be layoffs at Wag since the major investor in the startup has withdrawn from it. Apart from that, CNBC’s source also tells them that the startup has had offers from two pet companies for selling itself and they have considered those offers as well. Also, 80% of Wag’s staff has been laid off in an effort “to streamline its business”.

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