The e-commerce industry has been going through a transition phase, and all the major players are trying to cash in the best possible way. Alibaba Group Holding Ltd (NYSE:BABA) is the largest e-commerce website of China and one of the biggest online retail stores of the world. The company has decided to invest in a prominent venture capital firm of Israel named JVP. Primary objective of Alibaba is to support the innovation and startup culture in the country in peculiar ways.
Strategic Decision Or Not:
Some of the experts are calling it a strategic decision of Alibaba while others are calling it an outlandish move in today’s volatile conditions. From the surface, it looks like Alibaba’s intention is to get a hold on the startup ecosystem of Israel. Within the two months of its first investment in the company, it has decided to join hands together with venture capital firm Jerusalem Venture Partners.
The announcement was made by JVP stating that Alibaba had partnered with it. Reports claim that JVP will help the e-commerce giant to provide financial support to the promising startups. Even though JVP made clear Alibaba’s intentions to invest in the promising Israel market, but it refused to disclose any financial details of the deal. Reporters tried to get in touch with any representative from Alibaba to put some light on this issue.
One of the spokesmen of Alibaba Group Holding Ltd (NYSE:BABA) stated that JVP deal is in line with Alibaba’s mission to help out innovative startups. He clarified that the deal was concerning the development of startup culture in the country, but he refused to tell the financial details of this investment.
One of the leading daily publications Times of Israel states that JVP has CyActive, CyberArk, and many such security software marketers in its portfolio. It might have prompted Alibaba to put huge money into this firm.