Amir Efrati, Cory Weinberg, Juro Osawa and Martin Peers:

And even Vision Fund’s privately-held startups will be affected by the economic downturn underway: it has $2 billion invested in hotel and travel startups such as Oyo, Klook and GetYourGuide, for instance, which are sure to lose some of their value from travel drying up.

Adding to Softbank’s risk is its high debt load of about $160 billion, including debt of subsidiaries like Sprint. In particular, SoftBank or the Vision Fund has borrowed as much as $16 billion against some of its equity stakes, most notably in Alibaba, its Japanese telecom unit and Uber. If the market continues spiraling down, SoftBank may need to come up with extra cash or stock to make up the losses in collateral value.

A steep decline in Vision Fund’s performance would make it harder for SoftBank to raise more money for new investment funds in the future, said Tokai Tokyo Securities analyst Masahiko Ishino.