Techcrunch analysis here...
The Kingmaker Strategy: Pioneered By The Chinese Internet Giants, Coming To America?
Editor’s note: Jeff Richards and Jixun Foo are Managing Partners at GGV Capital, a $2.2 billion venture capital fund focused on the U.S. and China. GGV is an investor in Alibaba Group, MediaV, Meilishuo, Quixey, Qunar, UCWeb and Youku Tudou.
A few weeks ago, Chinese e-commerce giant Alibaba made a number of announcements at its annual developer conference. Several announcements surrounding its mobile strategy related to a Silicon Valley startup called Quixey. What is a $200 billion+ e-commerce giant doing with a startup based in Mountain View, Calif.?
It’s the latest example of the kingmaker model we’re seeing the Chinese Internet companies execute very well:
1) Pick a fast-growing leader in an important emerging category
2) Make a sizeable (more than passive or minority) investment in the company, often taking a board seat
3) Go “all in” to help drive the smaller upstart to new heights and outright leadership in its category
a snip from another item...
For instance, the Alibaba association has helped Peel to acquire two companies in China. The deals give Peel access to talent in China and leverage in what is the startup’s fastest-growing market, he told Silicon Dragon attendees.
a snip from another item...
For instance, the Alibaba association has helped Peel to acquire two companies in China. The deals give Peel access to talent in China and leverage in what is the startup’s fastest-growing market, he told Silicon Dragon attendees.
It’s a pattern we haven’t yet seen take hold in the U.S. but believe we might.
No comments:
Post a Comment