SFTBY - Katerra becomes second SoftBank-backed startup to close this year

SoftBank-backed ([[SFTBF]];[[SFTBY]]) construction startup Katerra is shuttering, letting go thousands of employees and walking away from dozens of projects, according to The Information sources. Katerra raised $2B in its six years of existence, largely from SoftBank's Vision Fund. Another Vision Fund-backed company, Greensill Capita, closed earlier this year. SoftBank also famously had to step in to bail out investment WeWork after its initial failed IPO.Katerra reportedly told employees there isn't enough money left to pay severance or for unused time off.The construction company considered Chapter 11 last year and planned to raise additional funds. SoftBank stepped in with $200M in December, which added up to a majority stake.Katerra's recent woes also included an SEC investigation into the company's accounting practices and the ouster of CEO Michael Marks last year.Recent related news: Credit Suisse cuts off dealings with SoftBank due to Greensill collapse

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Katerra becomes second SoftBank-backed startup to close this year