China's Alibaba to expand U.S. reach with new investment group

Three U.S. Internet companies have already received funding from the Chinese Internet giant

The Alibaba Group logo

The Alibaba Group logo

China's Alibaba Group is poised to invest more in U.S. tech companies with the start of a new investment group that the e-commerce giant is setting up in San Francisco .

Alibaba is looking to back "innovative platforms, products, and ideas" that focus on e-commerce and new technologies with the investment group, the company said in an email Wednesday.

The company recently invested in three U.S. tech companies, the latest being ShopRunner, an online retailer that competes against Amazon.com. Alibaba led a recent investment round for ShopRunner that raised US$200 million.

Earlier in the year, the company also funded Quixey, a search engine for mobile apps, and Fanatics, a retailer of licensed sports merchandise.

The U.S. market and Silicon Valley have talent and expertise the Chinese e-commerce company wants to tap into, said Mark Natkin, managing director for Beijing-based Marbridge Consulting. At the same time, Alibaba has ambitions to become more international. Its investments in the U.S. could lay the groundwork for an eventual expansion into the country's market, Natkin added.

"Its often more effective, more cost efficient, to acquire a company that already has demonstrated success in the area you are trying to expand in," he said.

While not as well known in the U.S., Alibaba reigns as the largest e-commerce company in its home market. The company established Tmall and Taobao, two of the country's most popular online retail sites.

In the U.S., the company has a smaller presence with its wholesale supplier sites, Alibaba.com and AliExpress, which sells products to businesses and even consumers across the world.

Alibaba could also decide to list on a U.S. stock exchange, with an initial public offering some reports have estimated could value the company at over $100 billion.

Tags business issuese-commerceAlibaba Groupinternetinvestments

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service

Comments

Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?