The big story Just as Pets.com symbolized the ridiculousness that came to frame the tech industry preceding the Dotcom bubble burst at the start of the century, dog-walking startup Wag might symbolize that SoftBank’s earthquaking investment overexposure may extend far beyond a one-time WeWork mistake. This week, the WSJ reported that SoftBank had tossed in the towel on Wag, selling off its massive “nearly 50% stake” in the startup. The report states that SoftBank sold its stake back to the startup at a valuation far below its previous $650 million value. SoftBank is walking away from its two board seats in the process. Wag will be laying off “a significant amount of the remainder of its workforce,” according to the report. High-ambition startups stumble all of the time, but SoftBank’s money bag-swinging swagger has left a handful of startups with dollar signs in their eyes and the desire to grow at a pace that they never dreamed of. When LA-based Wag closed its $300 million raise from SoftBank at the beginning of 2018, plenty of people wondered why on earth a dog-walking startup needed that kind of money. Shift forward to the end of 2019, and startups that have relied on connecting contractor labor with phone-wielding consumers haven’t proven to be as capable in shifting into profitability with Wag seeming to be yet another example. Needless to say Pets.com and Wag really don’t hold much comparison when it comes to the broader impact. Pets.com was well-known largely because of its hilarious marketing overextension, Wag’s stumblings are far more impactful, especially as they relate to the reputation of its Japanese benefactor which has significantly reshaped the venture capital market in Silicon Valley and around the world. | 
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